The external factors WM should have taken into consideration when it considered about its expansion in India. Introduction: WM is the king of brick-and-mortar retailing which made an investment of $16 billion in FK which is based in India to rule the online retail business and expand globally. Most retail sales in India are through small individual retailers and these retailers were able to limit the foreign direct investment by influencing government to put some regulations. FK was founded in 2007 by two friends and established FK as online bookseller. Not many people in India were happy with this investment of WM in FK fearing that it would lead to predatory pricing. People also said that Indian market is a bit complicated and having a right partner is essential for success. Although, the investment of WM provided a financial support to FK and the retail business is going fine but WM still needs to make strategies to stand out in this competitive market. The external factors WM should have considered includes- Most of the retail sales in India take place through small retailers. These small retailers have been able to convince the government to put some regulations on Foreign Direct Investment by international retailers. Indian market is a bit complicated market so it is important to understand the marketing environment properly.

EBK MARKETING

10th Edition

ISBN: 9780135209783

Author: Stuart

Publisher: YUZU

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Chapter 2, Problem 40C

Chapter 2, Problem 42C

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Solution Summary: The author explains the external factors WM should have taken into consideration when it considered about its expansion in India.

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