International business Essay Example | Topics and Well Written Essays - 2500 words

International business - Essay Example    Table of Contents    Sl. No. Title Page No. 1 1. Introduction   4 – 5 2 2. Entry Strategy   5 – 10    2.1 Rationale for choosing Indian Market       2.2 Entry Mode       2.3 Advantages of Chosen Strategy       2.3.1 Licensing Vs. FDI       2.3.2 Joint Venture Vs. FDI       2.3.3 Strategic Alliance Vs. FDI       2.4 Possible Risks of Adopting FDI    3 3. Conclusion   10 – 11    Works cited    1. Introduction Market entry is one of the most crucial strategic decisions that every business organization takes. Market entry can either be an entry into a new market within the country or entry into a foreign market. In both the cases, it is very important to have an effective planning regarding the market entry process because it determines the future of the company with regard to success in the new. This report will make a detailed look into the market entry strategy suitable for Reliance Retail, one of the largest retail com panies in India, to enter the UAE retail segment. Reliance Fresh is one of the largest retail companies in India. It is founded in the year 2006 and is headed by Mukesh Ambani, the wealthiest person in India. Reliance Fresh is part of Reliance Industries Limited which has interests in petroleum, power, chemicals, textiles, polyesters, telecommunications, polymers, natural gas and petrochemicals. Reliance Fresh had huge success ever since it was established in the year 2006. Reliance fresh currently has a network of more than 560 outlets spread over in India. (Reliance Industries Limited, 2011) Reliance Fresh was placed as a retail company focussed on selling fresh fruits and vegetables and thus named as Reliance Fresh. But recently the company had announced its plan to shift its focus from fruits and vegetables to emerge as a super market or multiband retail store. One reason for this decision is the political and social issues faced by the retailer in many parts of India regarding dearth of vegetables and fruits. Another reason is to rebrand itself as a multi-brand retail store. Therefore, the company is now gradually reducing its exposure of fruits and vegetables in their outlets. As part of the expansion plan, Reliance Fresh is planning to invest around Rs. 25000 crores in the coming years. Reliance retail now operates under several brands namely, Reliance Super, Reliance Footprint, Reliance Timeout, Reliance Jewels, Reliance Wellness, Reliance Mart, and Reliance Digital catering to the specialized needs of consumers. Apart from all these Reliance also operates the brand Reliance IStore which is a specialized store selling only the products of Apple Inc. Reliance Footprint is now one of the largest footwear retailers in the country. The store caters to all the income groups of the society. Reliance Jewels is its jewellery brand and has entered the jewellery market by setting up its stores in major cities of the country. Jewellery business is one of the most promising business segments in India. Similarly Reliance Timeout is now of the largest book store in India. (Reliance Industries Limited, 2010) As of now, Reliance is only confined to the Indian market. It is now time to take the brand to a global market. Expanding retail to a global market is not easier. The main reason is that the global organized retail sector is highly competitive than the Indian retail sector. This report is intended to make an analysis of the best strategy