John Lewis Essay

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Company background and Target Market
The John Lewis partnership is an employee earned company based in the United Kingdom which operates through a structure of department stores, Waitrose supermarkets as well as specialist services such as currency, insurance and solutions for Business. John Lewis main business platform is based on their signature department stores.
The Target Market for the John Lewis Partnership is structured towards the Middle and Upper class social brackets because there is easier growth opportunities towards these markets. This is because these social groups have a good level of disposable income so therefore have strong purchasing abilities which in turn allows the John Lewis Partnership to be able to implement a Business …show more content…

Gap in the Market -. Currently in India there are no luxury department stores occupying the Market so therefore this presents a Business opportunity for John Lewis partnership to be able to fill a gap in the market which will allow the company to be able to expand significantly since there is a growing interest for luxury retail as disposable income amongst consumers in India is on the rise.








Rise in annual disposable income – The chart above shows the Annual disposable income for India. The year end 2014 is forecast to be a successful year in terms of annual disposable income growth. This data further reinforces the point of an available Gap in the Market because the more disposable income consumers have means the more spending power they will have available which therefore means there needs and wants are going to change meaning this group of society will be shifting more towards luxury high quality goods …show more content…

This is due to initial set up costs and professional support which is essentially needed when first entering the market in India. If John Lewis take the decision to expand in India they will need to cover the following initial costs:
. Trade Tariff- the Indian Government have a trade tariff policy in place regarding foreign investments. John Lewis currently source their stock within the United Kingdom so therefore initially John Lewis would be subject to paying import tariff in order to import stock.
. Human resource cost- John Lewis will have to source Human capital within India in order for the market entry to be successful. It will be essential for John Lewis to employ human capital since there will be a language barrier so therefore there will be the requirement to employ staff within the country to ensure there are no communication issues
Overall John Lewis should financially plan expenditure of 14.6% of income per capita.

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