Answer 1

Pestle Analysis for Carrefour entry strategy into India:

By doing a Pestle analysis a bigger picture of environment and threats lying in it will become
very clear.
PESTLE analysis of environment should be done by any company before entering into a new
market
PESTLE Analysis include
• Political Analysis
• Economic Analysis
• Social Analysis
• Technological Analysis
• Legal Analysis
• Environmental Analysis
Let us understand each of them in detail:
Political Analysis:
In political analysis Regulatory/Legislative Policy is checked, trade Practices in the country are
checked, Macro & External Environment are checked.
Doing a political analysis for Carrefour Retail we will do analysis of below political factors:
Allowance of 100% FDI in retail by GoI: By this now any foreign player can fully enter into
India without making any partnership with Indian entity this is good for Carrefour but by this
there will be new competition by other global retail players entering into India

Complex Political Structure: India has a complex political structure, states have their own
laws and taxation policies whereas centre has their own, permission to be taken up are also
very confusing to any of the foreign players. There is uncertainty of power and with change in
power many laws and rules tend to change. Thanks to GST regime and Single Window
Clearance system things are getting sorted out but still amount of confusion and haziness
remains in India due to Complex Political Structure
Slow Economic reforms: India is very slow in terms of economic reforms: if you keep aside
metros then Tier 2 cities shows a very slow and sluggish kind of economic reform pattern if
we go to tier 3 cities story is even worse.
Economic Factors:
GDP growth rate of approx. 7%: This is a very positive sign for any retail giant entering into
new market 7% GDP growth rate shows that market is still under growth stage and there is
very high potential of profit reaping in the market
Fluctuation in Local Currency: India donot have a steady currency in terms of Dollar it has
a history of weakening down as the time progress, thus any MNC giant entering into Indian
market has to take this factor into account and has to hedge his profit to safeguard it against
fluctuating currency risk
Inflation Rate growing up: This is a bad sign for economy as this shows that the prices
increasing are exorbitantly high but still Inflation is not coming down this shows that the
population has a purchasing power which is sustaining higher inflation this is a positive sign
for retail players as this shows purchasing power of the population
Social:
Large amount of young population: India is a country which has average population age of
29 and which has almost 65% of its population below age of 35. This is a major target audience
for any retail giant and India has most of it.
Different Social Beliefs & traditional Mind-sets: India has a dynamic culture throughout the
country, it is a continent within the country. Different states has different beliefs, traditions,
dressing styles, tastes, culture, festivals etc. Thus for any retail giant it is a huge task to deploy
schemes promotional offers and dynamically handle inventory throughout the country as
handling India is not handling a country it is equal to handling an continent in terms of diversity.
Cultural Difference with France: India has a vast cultural difference in comparison with
France thus Careffour has to adapt itself into whole new culture systems and customs if they
want to work in India.

Technological:
Highly educated and skilled resource available cheaply: India provides a highly educated,
dynamic and hardworking resources to the MNC at a very cheap rate this will be major
advantage to the MNC.
Technology & IT Hub: India is becoming a technology & IT hub and hence retail will get
direct competition from e retail and even Careffour can use this technology advantage to come
up in e retail or to have a integrated connected system with home country.
Retail industry is showing tremendous Technological up gradation: Retail industry in
india today has totally evolved and is totally different then what it was used to be in 2000’s.
Today all the technological upgradation are there, shopping experience has changed
enormously, customer have become more demanding then what they were. Thus Careffour has
to lookout for this and has to innovate if they want to become serious competition in Indian
Retail market
Legal:
Customer protection Regulation: India has a good framework for customer protection
regulation and companies working in retail have a responsibility that the customer is not
cheated neither they should be involved in any kind of data misinterpretation.
Legal policies & trading regulations: india has strict legal policies and trading regulations of
SAFTA, APTA that all the retailers has to follow. Under GST regime it has become more open
but stringent to note down each transaction
Government preference towards Cottage industry Development: Government subsidise
many cottage industry product and these products are exempted from many taxes, being retailer
all these information’s are required to be known and retailer should be acting in accordance to
all these policies
Environmental:
Climate Change: India has a vast climate and geographical difference within the country,
seasonal change is also bit different at different places and hence inventory management for
Careffour for such vast difference will be a huge task.
Strong CSR policy driven market: India has a strong CSR policy driven market Indian
population has started preferring products from the brands taking active part in CSR activities
then from other brands.

Answer 2
Competitive Advantage for Brand Ambassador
To make a competitive advantage strategy, as a CEO I will first understand Competitor’s
Current Strategy:
To understand the same following reports of the competitors will be studied:
• Annual Shareholder Report
• 10K report
• Interview with Analyst
• Statements by managers
• Press Releases
Competitor current strategy will be evidently checked by me by analysing:
• Hiring Activity
• R&D projects
• Capital investment
• Promotional Campaigns
• Strategic Partnership
• Mergers & Acquisitions
After this I will study Competitor Analysis Framework to understand standing of each
competitor and his way forward:
• Competitor Objective
• Competitor Assumption
• Competitor Strategy
• Competitor Capabilities
Competitor Objective: Objective of different competitors like Honda, Ford, Maruti Suzuki,
Hyundai, General Motors, Audi, BMW, WolksWgon, Tata Motors, Skoda, Mahindra are to be
studied thoroughly. What is the main objective of each company is to be known is the objective
of the company to acquire market share or is it to achieve customer excellence or is to target
niche luxury market. After knowing objective of each company its working trend to achieve
the goal will be clearly identified.
Assumption of Competitors: What does each company assume for it is to be understood well.
Say Audi & BMW has an assumption that their cars are only ment for premium segment rich
population of the country they don’t have to bother for average class buyers. Maruti Suzuki
having assumption that they have best service centre networks in country and no one can beat
them. Honda assuming that there is no space for cheaply available cars in Indian market
compromising quality. Tata Motors assuming Lakhtakiya Tata Nano will rule the market as
being the cheapest option available.
Competitor Resource & Capabilities: Maruti Suzuki having best in class technology to produce
fuel efficient cars. Audi having best in class technology to produce luxury premium cars. Tata
Motors having best in class value chain and engineering design to produce cheapest car on the
planet. General motors having a best in class technology which can give free service guarantee
on their cars for 5 years.
Competitor Response: Based on all the above competitor objective, assumption, Resource &
Capabilities a response matrix can be created this response matrix will guide us what are
driving forces for different companies what drives them to do what they are doing will be
clearly identified.
After this I will conduct rivalry analysis for the competitors:
Rivalry Analysis: I will study extent to which different firms can go up to hamper profitability
of other firm. Thus by I will understand profit potential for my company to re-launch
ambassador.
I will study the following factors and will determine the intensity of rivalry:
How Many Competitors are there: My analysis result is competitors are numerous
What is size of market share held by competitors? Taking Maruti Suzuki and Hyundai as
exception mostly all competitors are having more or less equal share to car market
How is growth of industry? My analysis will result that India Automobile Car Industry has a
very slow growth rate
How are fixed Cost? In Car manufacturing industry fixed cost of setting up a manufacturing
plant or industry are highest
How can products be differentiated? In car industry there is very less margin of differentiation
between same segment cars
Significance of Brand Loyalty? In this industry it is insignificant
How are Exit barriers? Very high

Thus my analysis clearly results that competitions high and rivalry is very high in the industry
Thus by this Rivalry analysis between firms I will derive final competitive dynamic analysis
and as a final result Competitive Advantages will be worked out by me.
Final Competitive Advantage will be built by me based on all of the above results.
Completive Advantage Ambassador will have are:
• Better reach to target audience all over the country
• Sales team and logistics channel set in the country
• Sales contracts can be reviewed with government bodies and again relationship can be
build in
• Better experienced working staff
• More experience of Indian Market than any other firm
Thus by all these I will try to re-introduce Ambassador in Indian Market as being CEO
of Hindustan Motors.
Answer 3
Part a
Porter’s Five Force Analysis for Indian Automotive market performed for Geely a major
Chinese Automotive Company
Let us first list down Porter’s Five Forces that shape the industry competition:
• Threat of New Entrant
• Bargaining Power of buyer
• Bargaining Power of Supplier
• Threat of Substitute Products or Services
• Rivalry amongst existing competition
Let us understand each one of them from basis from automotive sector in India:
Threats of New Entrants: Automotive sector in India is having good amount of players in it
and thus has a good competition. Many global brands have their presence in the market. Any
new entrant if entering in the market than it has to come with direct competition with
established brands in Indian market like Hyundai, maruti Suzuki, Honda, General Motors etc.
there is a huge establishment cost involved in setting up an automotive plant in the country,
there is a huge land requirement and large amount of automotive spares suppliers required.
Automotive assembling unit will be setup by automated robortic control assembly line which
is very costly, before sending automobile to market a lot of tests are to be performed and huge
investment is required for its setup. Once in market a huge money has to be pumped in to get
logistics chain established, to get showrooms on cream locations in different cities, tie up with
different showrooms and value chain setup. Thus due to such high capital intensive setup
requirement there is a high entry barrier in the industry and hence threat of new entry is low in
this market
Bargaining power of Supplier: There are many automotive industries in the market and thus
supplier has many options to sell his product to, but at same time there are n numbers of
suppliers who supply automobile spares to companies and hence competition is very cut throat
in the business and hence there is very less bargaining power with the suppliers in India
Bargaining Power of Buyer: In Indian market there are multiple car manufacturing brands all
are at different price levels, all give n number of promotional offers to their consumers. Thus
it is clear consumer has n number of option to choose from and hence the bargaining power of
buyer is high in this market
Threat of Substitute product: Substitute product is to normal car industry is hybrid cars.
Other substitute is public transport but Indian mentality is still not up for taking up public
transport and in India hybrid car craze at present is on boom but there are very few companies
supplying them and hence at present in Indian market threat of substitute product is less.
Rivalry amongst Existing Competition: There is a very high rivalry amongst existing
competition, there are many brands present in Indian market most of global brands are present
in the market. Each brand is aggressively concentrating on increasing their sales and trying to
grab more and more amount of market share and hence we can say rivalry amongst existing
competition is very high in the market.
Part b:
Based on Porter’s five force analysis final conclusion for the company will be at present India
is booming market. Car companies entering new like Nissan have not fared well, General
Motors due to their global results were not able to fare well in India, but on other hand Honda,
Toyota are the examples which shows shining results.
Thus seeing onto the market Five Force Analysis: we can conclude finally is to enter into a
market with high competition, with high barrier to entry and with high bargain power in hands
of buyer it is bit risky decision to enter.
• Seeing onto the current scenario and future trend there will be higher competition in
Indian Market in between hybrid cars and normal cars and hence threat to substitution
will increase
• Existing brand competition will eat up any market that is tried to be made by new
entrant
• Setting up cost and operation cost in Indian market may not be justified as at present
market is saturated
• Thus finally concluding entering into Indian Market at this point of tome by Geely will
not be a wise decission