Answer to Question #273664 in Management for akki

Question

Case: A South Indian food retailer has 15% market share in South India, with three major competitors having 10-12% shares each. The rest of industry is fragmented amongst smaller players. Two of the competitors already have operations in North India.

Question: This company has no experience of retailing in North India and a minimal knowledge of the region. So, should the company open stores in North India too?

Answer 1

Yes, the company can successfully venture into the North Market because it has the potentials and competencies gained from Southern India. Entry into new markets is always a risk; however, even though the company has no experience in the North, it is evident that the company would succeed because some of the competitors in the South are operating in the North, and this means the business can prevail as long they use suitable marketing techniques.