International Business
Analysis of Business strategies
Academic Group 13 :
Bhavik Shah
Ridhi Gupta
Rajvi Mittal
Mukesh Kumar P
Rounak Taysheti
PGP-22-015
PGP-22-057
PGP-22-054
PGP-22-037
PGP-22-062

Company and Market overview
Save money. Live better.
Mission statement : ”Purpose to be an innovative grocery store by
providing friendly service, clean stores, quality merchandise, and speedy
check-out lanes throughout our locations.”
Mission statement : “We save people money so they can live better.”
Products : Electronics, Movies & Music, Home and Furniture, Clothing,
Footwear, Jewelry, etc.
Products : Groceries and household essentials, Clothing, shoes, and
accessories, Electronics, Home and kitchen appliances, Furniture and
home décor, Health and wellness products, Automotive supplies and
services, Sports and outdoor gear, Beauty and personal care products,
Pet supplies, Jewelry and watches, Party and seasonal items
TOTAL REVENUE 2021 : $588.6 Billion
TOTAL REVENUE 2021 : $2.5 Billion
Naye India Ka Bazaar

Global landscape of the Retail Chain Industry
Key Industry driver and trends
Artificial Intelligence :
AI is being used to optimize retail operations, from supply chain
management to inventory optimization to personalized
marketing.
E-commerce and online shopping : For convenience and
affordable price, consumers are turning more and more to online
businesses. As a result, direct-to-consumer companies and online
marketplaces like Amazon have grown and emerged.
Sustainability and social responsibility: Retailers are making
investments in environmentally friendly strategies, such as lowering
waste and carbon emissions, as well as giving to charitable
organizations.
Personalization : Retailers are leveraging data and artificial
intelligence to customise their goods to meet the increasingly
individualized demands of their customers. This extends to marketing
messaging, individualised product suggestions, and even specialised
goods.

Retail Industry in India
With a predicted CAGR of 10.5% between 2021 and 2026, India is one of the retail
marketplaces with the greatest growth rates in the world.
E-commerce is a key factor in the Indian retail sector's expansion. The e-commerce
market is anticipated to grow from $90 billion in 2021 to $200 billion by 2026.
Millions of new employment are anticipated to be created in the Indian retail sector in
the upcoming years, with a predicted growth of 25 million jobs by 2026.

Uses a "Everyday Low Prices" strategy, offering low prices on
products consistently.
Big Bazaar and Walmart strategies comparison
Big Bazaar Walmart
Large shops run by Big Bazaar and Walmart are often found in suburban or rural locations. These establishments are intended to serve as
one-stop shops where clients can get all of their needs met.
Both of these stores sell a large variety of goods, including food, electronics, furniture, apparel, and other items. They are able to expand
revenue and draw in a sizable consumer base as a result.
Offers discounts and deals to attract customers. Operates on a
low-margin, high-volume business model. Pricing
Emphasizes efficiency and convenience in its store design,
focusing on easy navigation and quick checkout. Offers a wide
range of products, including groceries, electronics, and clothing.
Focuses on creating a family-friendly, welcoming atmosphere.
Offers a wide range of products and services, including food,
fashion, and home goods.
In-store
experience
Has invested heavily in e-commerce capabilities, including same-
day delivery and pickup options. Recently launched Walmart+
subscription service for free delivery and other benefits.
Has a strong online presence, offering online ordering and
delivery services. Ecommerce

High level Buckets
Rationale: Fast growing
market with a large expatriate
population
Southeast Asia
Rationale: Growing middle
class and a large population,
which could offer a significant
growth opportunity
Africa
Rationale : Growing middle
class and a high demand for
affordable retail options.
Latin America
High demand for affordable
retail options.
Country Popula
tion
Major
players
Nigeria 21.34
Crore
Shoprite 25
Spar 13
Park N Shop
10
South
Africa
5.94
Crore
Shoprite
1000
Pick & pay
800
Spar 950
Kenya 5.3
Crore
Naivas 70
Tuskys 50
Quickmart
30
Country Population Major
players
UAE 1 Crore Carrefour
-50
Lulu - 150
Spinneys -
30
SAUDI 3.6 Crore Carrefour-
30
Danube -
50
Panda -
200
QATAR 27 lakhs CarreFour-
10
Al-Meera-
50
Lulu - 15
Country Populati
on
Major
players
Indonesia 27.38
Crore
Indo-mart
– 18000
Alfamart-
17000
Super indo
– 150
Malaysia 3.36
Crore
Giant 122
Mydin 81
Tesco 296
Banglades
h
17
Crores
Meena
Bazar -20
Agora 15
Shwapno
80
Coun
try
Popul
ation
Major players
Brazil 21.4
Crore
CarreFour 600
GPA 1000
Walmart 500
Arge
ntina
4.58
Crore
Coto 120
Carrefour 580
Walmart 100
Colu
mbia
5.15
Crore
Grupo 600
D1 3000
Oympica 350
Middle East

The Three Main Question

Distance India Bangladesh Indonesia Nigeria Kenya UAE
Cultural Dominated
by small
retailers.
Growing
modern
retail, price
sensitive
customer
Price sensitive, good
shopping
experience, brand
conscious,
preference for local
products
Price sensitive,
relationship focused,
family oriented
shopping
experience, brand
conscious, and
convenience
oriented customer
Price sensitive, family
oriented shopping
experience, brand
loyalty, relationship
focused, preference for
locally sourced products
Quality conscious,
brand conscious,
Price sensitive,
preference to locally
sourced products,
convenience of
shopping
Administrative Former
British
colony
Former British
colony. Share
historical past. Good
trade & political
relations. No govt
hostility towards FDI
Former Dutch
colony. Good trade
relations spanning
thousands of years.
Govt policies favor
FDI. Good political
and trade relations.
Both part of NAM, G-
20 etc.
Former British colony.
Good trade relations
between the host nation
and target nation.
Commonwealth nations.
Share good political and
trade relations.
Former British
colony. Good trade
relations for
centuries.
Commonweath
nation. Share good
trade and political
relations. Govt
welcoming of FDI
Former British
colony. Good trade
relations for
centuries. Good
political and trade
relations. Govt
welcoming towards
FDI
Geographic NA Common border.
Well connected by
sea and land,
densely populated,
population = 16.8 cr,
good supporting
infrastructure
Well connected to
host via sea. Good
internal
infrastructure.
Population = 27. 38
cr
Well connected to host
via sea. Good supporting
infrastructure.
Population = 21.34 cr
Well connected to
host via sea.
Supporting
infratructure
available.
Population = 5.3 cr
Well connected to
host via sea.
Supporting
infratructure
available
Population = 1cr
Economic GDP/capita
2256 USD
GDP/capita
2,846.84
GDP/capita
4332 USD
GDP/capita
2065 USD
GDP/capita
2081 USD
GDP/capita
44,315 USD
CAGE Framework

Political Factors
The current political climate in Bangladesh is not
stable.
Cultural Factors
Economical Factors
Demographic Factors
International Level
80
20
55 60
47
20
77
48 56
40
51
26
Bangladesh India
Bangladesh has a hybrid party model.
In the most recent World Bank rankings for the ease
of doing business, Bangladesh is placed 168 out of
190 economies.due to its excessive bureaucracy.
According to the Transparency 2021 Corruption
Perceptions Index, the country is placed 147th out of
180 countries.
Metric Figure
GDP Growth 6.9%
Inflation Rate (%) 8.71%
Unemployment Rate (%) 5.23%
Economic Freedom Index 137/178
Bangladesh's economy ranks 25th globally in
terms of purchasing power parity and 35th
globally in nominal terms.
Metric Figure
Population 17 Crore
Literacy Rate 74.91 %
Dependency Rate 47.67 %
Life Expectancy 71.97 years
Urban Population (%) 38.18 %
• One of the biggest producers and exporters
of ready-made clothing is Bangladesh.
• A large variety of leather and leather goods,
including shoes, purses, belts, and jackets,
are produced in Bangladesh and sold to
several nations throughout the world.
National Level
• In 2020, the retail market in Bangladesh will be
valued $16 billion. Just 1.6% of this amount, or
around $256 million, was attributed to the
superstore sector.
Industry Level
• In the worldwide list, Bangladesh is rated 46th
in terms of e-commerce revenue.
Company Level
• No presence in Bangladesh
Source: www.hofstede-insights.com
EAF-Bangladesh

Political Factors
Indonesia's government is stable.
Cultural Factors
Economical Factors
Demographic Factors
International Level
78
14
46 48
62
38
77
48 56
40
51
26
Indonesia India
According to the Transparency 2021 Corruption
Perceptions Index, the country is placed 96th out of
180 countries.
Indonesia is ranked 73 out of 190 economies in the
most current World Bank rankings for business
accessibility.
It is characterised by power sharing among political
parties often characterised as "cartel parties".
Metric Figure
GDP Growth 5.1%
Inflation Rate (%) 5.28%
Unemployment Rate (%) 5.86%
Economic Freedom Index 63/178
A newly industrialised country, it will be the
world's 17th biggest by nominal GDP and 7th
largest by purchasing power parity in 2020.
Metric Figure
Population 27 Crore
Literacy Rate 96%
Dependency Rate 47.61 %
Life Expectancy 72.3 years
Urban Population (%) 55.8 %
• Indonesia's biggest exports include oil, gas,
minerals, electrical goods, crude palm oil,
and rubber goods.In Indonesia, the most
common imported goods are telephones,
refined and unrefined petroleum, aircraft,
and helicopters.VAT is 10% and import duty
is 7.5%.
National Level
• In 2020, the retail market in Indonesia
will be valued $159 billion. A growing
preference for local brand is a key trend.
Industry Level
• Indonesia is 10th largest market for e-
commerce with a revenue of USD 56 billion in
2021.
Company Level
• Big bazaar currently does not have any
presence
Source: www.hofstede-insights.com
EAF - Indonesia

Factors Competiti
veness
Suppliers Barrier to
entry
Political
Climate
Bangladesh 2 3 3 2
UAE 4 5 5 5
Indonesia 5 5 5 4
Nigeria 1 2 2 1
Countr
y
Low
Income
Middle
Income
High
Income
Banglad
esh
20% 56% 24%
Indonesia 9% 61% 30%
Nigeria 40% 48% 12%
UAE NA 61% NA
HOW : Modes of Entry
Country Mode of
Entry
Banglad
esh
Umbrella
Holding
UAE Int-
Franchise
Indonesia No-go
Nigeria JV
Kenya JV*
Trade off- Matrix

When to Enter ?
Early Mover Advantage
• We will gain early mover
advantage in geographies such as
Africa
Late Mover Advantage
• In this particular case we cannot
recognize any late mover
advantages
Macro-Analysis,
Country Analysis
International
Franchise in
UAE
Franchise
Expansion in UAE
Start Acquiring
Subsidiaries in
Bangladesh
Timeline
Joint venture in
Nigeria with
Shop Rite
Expand Business
in Nigeria

Pressures for Global Integration
• Globalization of Markets: Brings in
economies of scale. Ideal spot for the
companies trying to be cost leaders in their
particular industry.
• Efficiency Gains of Standardization: A few
companies might sacrifice on efficiency gains
to serve a more niche market which has a
preference for customized products.
Example : Organic farm products.
Pressures for Local Responsiveness
• Consumer Divergence : Consumers
preference vary across geographies due to
culture climate and economic factors.
• Host Government Policies: Every
government has its policy regarding the
distribution of consumables.
TRANSNATIONAL
GLOBAL
INTERNATIONALIZATION MULTIDOMESTIC
Pressure for National Responsiveness
Pressure
for
Global
Integration
Walmart
Walmart adjusts its operational, marketing, and product strategies to suit
the particular requirements of each local market.
Global Integration versus Local Responsiveness
Integration Responsiveness Grid
Walmart operates in Mexico under the
Bodega Aurrera brand, which has
compact, handy stores.
Walmart China is the moniker under
which it conducts business in China,
although it also has a 49% part in a
joint venture with JD.com, a local
business..

Country Bangladesh Kenya Nigeria
Adaptation
Big Bazar will have to choose those brands
that give value for money, focus on the
customer experience, and also focus on
local sourcing and sale.
Big Bazar will have to choose those
brands that give value for money, focus
on the customer experience, and also
focus on local sourcing and sale. Also,
they will have to make sure that the
location of the stores is convenient to
the consumer.
Big Bazar will have to choose those brands
that give value for money. They will have to
source locally to attract customers. For
Nigerians, shopping is a family experience.
Company will have to take care of this
aspect to maintain loyalty. Also, they will
have to make sure that the location of the
stores is convenient to the consumer.
Aggregation
The company can leverage the existing
supply chain into Bangladesh. It need not
setup new manufacturing facilities.
Sourcing of local materials will do the job.
Company will have to set up plant in
Kenya (JV preferred). JV will work on
local sourcing, setting up retail
locations and distribution.
Company will have to set up plant in Kenya
(JV preferred). JV will work on local
sourcing, setting up retail locations and
distribution.
Arbitrage
Bangladesh has a lower valued currency
and a very large potential market ( 50%
population staying in and around Dhaka)
Kenya is a strategic hub to expand into
the east African market. Also, it has tax
advantages.
Tax rates in Nigeria are lower than India.
Also, Nigeria, being rich in natural
resources has the potential to decrease the
cost of the product.
AAA Framework

Strategic Recommendations
Entry into Africa Entry into Bangladesh Entry into Indonesia
Entry into UAE
• Leverage the large
Indian Diaspora living
in UAE.
• Relatively a smaller
and developed
market.
• Entry through a
franchise is financially
less riskier.
• Leverage Reliance’
group’s network in the
Middle East.
• Enter in 1st year.
• Market is in growth
stage.
• Joint venture is
required to handle the
political barriers to set
up business.
• Early mover
advantage might pay
off.
• First Setup a JV in
Nigeria and based on
that setup JV in Kenya
based on similarity in
the type of markets.
• Enter in 4th Year.
• Leverage the Indian
Supply chain operations
and export relations.
• Rapidly Growing middle
income segment.
• Lack of big players with
more than 100 stores.
• Mode of entry through
Acquisition of multiple
small players.
• Threat from the local
Kirana stores.
• Enter in 3rd year.
• Market is saturated.
• Large number of
competitors.
• Entry through wholly
subsidiary will lead
into a price war. Well
entrenched
competitors with
more than a
thousand stores.
• Adopt No- Go
Strategy

Appendix & reference

Political Factors
Indonesia has remarkable stability even when
neighbouring countries aren't.
Cultural Factors
Economic Factors
Demographic Factors
International Level
70
25
60 50
0 0
77
48 56
40
51
26
Kenya India
The nation is ranked 123rd out of 180 nations in
Transparency 2021 Corruption Perceptions Index.
In the most recent World Bank rankings for the ease
of doing business, Indonesia is placed 56 out of 190
economies.
Current key issues in Kenya include Refugee rights,
forced evictions, abuses by security forces and
abuses related to Covid-19 pandemic.
Metric Figure
GDP Growth 4.7 %
Inflation Rate (%) 9 %
Unemployment Rate (%) 6.6 %
Economic Freedom Index 138/178
Kenya's mixed economy is growing, and in 2020 it
will be ranked 95 internationally in terms of
purchasing power parity and 61 globally in terms
of nominal GDP.
Metric Figure
Population 5.5 Crore
Literacy Rate 82.62 %
Dependency Rate 70.18 %
Life Expectancy 62.68 years
Urban Population (%) 28.49 %
• Horticultural products and tea are Kenya's
top exports. Others include coffee, tobacco,
iron and steel products.
• Its main imports are machinery and
transportation equipment, petroleum
products, motor vehicles, iron and steel etc.
• Standard VAT of 16 % is levied on all
imported goods.
National Level
Industry Level
• Kenya's supermarket business has experienced
substantial growth over the past several years.
Company Level
• Big bazaar has no presence in Kenya.
Source: www.hofstede-insights.com
EAF-Kenya
Due to the quick development of local and
foreign firms, the retail market in Kenya
saw increasing activity. Despite a decline
in rental returns, the sector has remained
steady.

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