I support Tesco should enter the Indian market, because India is the second fastest

growing economy in the world, the retail business in India is still highly fragmented. And
retailing is gradually inching its way toward becoming the next boom industry. Even
though there has some governmental regulations and trading barriers; However, Tesco
could use varieties of ways to solve it. First of all, become a joint venture company to
couple with domestic big company giving tough competition. Secondly, adopting some
nonmarket strategies regarding about GDP growth, taxes revenue and hire local people to
convince Indian government to relax the regulations. The most significant is that to push
E.U and W.T.O. to pressure India government to eliminate the barriers.

Ideally Tesco should pursue a strategy of “Joint Ventures” to avoid the regulations. Tesco
has many advantages and successful experience in different counties; for instance, the
financial resources, supply chain management, logistics. and has recently demonstrated
its ability and proficiency in entering new, competitive markets like U.S., South Koran,
China. This is learning by doing to accumulate the experience in India to fight with
regulations to be eliminated. Otherwise Tesco will loss or behind other competitors in
India.

Tesco needs to alliance with Wal-Mart and other FDI in India to convince some of
political parties and their supporters to deal with these issues in order to relax the
regulations. Obviously relax FDI in India will bring GDP growth, taxes income and hire
more local people. India's retail sector accounts for 14 percent of GDP and is growing
annually at 7 percent. These revenues and advantages can create a better infrastructure, of
which India is badly in need. For another hand, most FDI companies are from developed
countries and very experienced, India companies and people could learn good
technology, management skills and logistics, etc. to improve their national economy.

Tesco needs to alliance with other competitors to get help from India's major trading
partners such as the United States and the European Union should push and make some
“pressures and requests" to India government to allow FDI in retailing. India is a member
of WTO so that India has to follow the rules of world trading agreement to open India`s
retail market gradually. Other world trade countries like China, Philippines, Argentina
etc. where FDI is allowed in retailing has produced wonderful results. They can suggest
India government some experience from other countries; for example, China allowed FDI
in retailing but restricted to six major cities, foreign ownership initially restricted to 49%
of joint ventures and foreign retailers that operate large retailers will be limited to 50
units

I recommended that Tesco should enter into India market to think global but act local. to
well deal with business and social environment with local government.