Introduction India is world’s second most populated country with over 1.2 billion people. Since its independence from British rule in 1947, the country has been more or less been a stable democracy. Until 1991 Indian governments imposed economic austerity and its markets were comparatively closed to the world. Economic reforms in 1991 brought about a change which made India an attractive and huge market for multinational corporations from all over the world (Joshi 8). Retail industry within a globalized world is one of the thriving and profitable sectors. In the case of India retail industry is witnessing unprecedented growth and transformation (Malini 161). Organized retailing is becoming a norm as opposed to unorganized retailing which was dominant in the past. For a direct investor from United States of America, who is interested in investing in consumer goods retailing and e-retailing in India, it is important to understand the macro environmental factors which can have serious impact on the success or failure of a venture. According to Musgrave (38) India is the fourth largest economy in the world and it is expected that by 2050 it will become the most populous country in the world. Since the initial relaxation of barriers and encouragement of foreign direct investment in 1991 retailers have started making inroads into the Indian markets. Using the PEST analysis this paper will explore the macro environmental factors comprising political, economic, social and technological environments for investing in retailing and e-retailing of consumer goods. Political Factors Since its independence in 1947, political stability has been a key factor which has ensured that India is the largest democracy in the world today. In spite ... ... middle of paper ... ...r. 2012. Print. Mishra, Sita. "A Paradigm Shift from Pyramid to New Multifaceted Consumer Class in India and its Impact on Organized Retailing." Journal of Marketing & Communication 5.2 (2009). Print Mishra, Sita, and Mathew, Priya. "Analyzing Perceived Risks and Website attributes in E-Retailing: A Study from India." Journal of Internet Banking & Commerce 18.2 (2013). Print Musgrave, E. Targeting India, the next big thing. Drapers. October 1. 2005: 38-40. Print Subramanian, Arvind. India’s Economy is stumbling? The New York Times. August 31, 2013: A19. Print. The Indian Express. India ranked 94th in Corruption Perception Index ratings says Transparency International. The Indian Express. December 5 2012. Web. Available at: http://archive.indianexpress.com/news/india-ranked-94th-in-corruption-perception-index-ratings-says-transparency-international/1040857/
A boy, adopted by middle class parents, who dropped out of college after six months, decided to begin his own business, and he stated his business on 1 April; April Fool’s Day (Dernback, n.d.). Society would presume that a company with such a colorful beginning would most likely not survive its infancy stage, but that is not the case for this story. In 1976, this company began with three men and one thousand dollars, but it started a movement that would revolutionize the world, Apple Computer was born. By the time Steve Jobs was twenty-five years of age, he was worth over a hundred million dollars (Dernback, n.d.). Jobs not only had an idea, he had a plan that would lead to the success of Apple. Jobs understood that “Marketing is much more
Likewise, in article 2 the author is very specific about the target. He has tried to fill the gap that had been created due to lack of research on the small retail shop which shares a very large portion of Indian market. I assume there are more to research in this area and the article could have conducted some practical test to enhance the report.
“Not again,” an article published by Arundhati Roy in the British newspaper, The Guardian, is a scathing denunciation of the United States and its current expansionism. Though Roy certainly is not representative of Indian public opinion on the United States war on Iraq—or on any subject for that matter—her article does manage to bring up several issues that are of importance to India as a developing country. Through her primary message of denouncing U.S. foreign policy, Roy also addresses two issues that are central to India today: the potential nuclear conflict with
The PEST Analysis for PC market in UK. Changes in interest rates, exchange rates, technology and the law are all external factors, which can affect a firm. These factors can affect the firms’ costs, or the market as a whole. Changes that take place in the external environment can be evaluated and analysed using a PEST analysis. To analyse the firms’ external environment, the following headings are used.
In On Democracy, Robert Dahl presents five criteria that states are required to meet in order to satisfy the primary aim of democracy, which is to provide political equality to all of its citizens (1998, 37). The criteria include effective participation, equal voting, enlightened understanding, open agenda setting and inclusion. (Dahl, 1998, 38). Above these criteria, this paper will only focus on effective participation and enlightened understanding to apply them to India; this is because its citizens are going through a tough time with the two criteria to become a state with effective democracy. Therefore, this paper will demonstrate that India is in the process of achieving effective participation, but significantly lacks enlightened understanding.
India is a nation that is on the move towards becoming one of the leaders in the global economy. While the country still has a long way to go, it is making significant strides towards competition with nations such as the United States and England. Indian leaders have been moving towards "a five-point agenda that includes improving the investment climate; developing a comprehensive WTO strategy; reforming agriculture, food processing, and small-scale industry; eliminating red tape; and instituting better corporate governance" (Cateora & Graham p. 56, 2007). These steps are geared to begin India's transformation from a third world nation into a global economic leader. The current marketing environment in India is in transition, with both similarities and differences in comparison to the marketing environment in the US.
The beginning of this article is all about Indian politics and the newly developed government after India's independence. The
The A Class, however, will be one of the most expensive compact cars in India — next only to the Fiat 500 and the Volkswagen Beetle.
[6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm
A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. Let us look at the PEST analysis of the Indian aviation sector:
Mooij, M.de. (2004). Consumer Behavior and Culture, Sage Publications, Page 102, Page 119, Page 274, Page 275
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
India is well known as a nation of contrasts, and the nation itself is a paradox. It is one of the world’s oldest known civilizations, yet it has only existed as the nation the world now know sit for 67 years. Similarly, it has produced some of the most important contributions to mathematics, science, philosophy, and trade, yet it is still considered to be a developing nation. The country’s history is a long, winding journey that has led it to its current state – the world’s largest democracy featuring both the same technological advancements enjoyed by the first world and the same challenges and problems faced by the rest of the developing world.
2. Organized Retail: The emergence of organized retail have lead to more variety with ease in browsing, opportunity to compare with different products in a category, one stop destination (entertainment, food and shopping) etc, which is playing an important role in bringing boom in the Indian FMCG market. Currently the modern trade is capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and 2025 respectively. Also, as the credit card and organized retail trend picks up, people won’t think much while buying and buy more.
“India was a latecomer to economic reforms, embarking on the process in earnest only in 1991, in the wake of an exceptionally severe balance of payments crisis”(Ahluwalia 2002).The idea being simple ,there was a need to ...