Question: Lifestyle Changes Through AffluenceBetween 2 0 1 2 and 2 0 1 5 , Indias growth averaged 8 percent annually. This economic successwas due, in
Lifestyle Changes Through AffluenceBetween and Indias growth averaged percent annually. This economic successwas due, in large part, to India opening its economy to foreign competition, making changes inmanufacturing and instituting measures to encourage international trade. The signs of economicgrowth in India were clear: new houses were being constructed in city suburbs, many more carswere using the already crowded roads, and a new, affluent middle class had emerged. With thegrowth of the middle class came a demand for luxury goods. One of these was wine.Rapid Growth in DemandAt the beginning of the st century, the wine market in India was almost nonexistent. By the market was expanding rapidly, with annual growth running at over percent. A new habit ofwine drinking had been encouraged by duty exemptions the Indian government made to boostwine consumption. By there were three major companies in the Indian wine market; theymet about percent of demand. However, the remaining percent of the rapidly growingmarket was large enough to accommodate more competitors. Because the quality of Indian winewas still relatively low, some companies had started importing foreign wines and rebottling themin plants in India for domestic consumption.A Small Winery Sees an OpportunityChateau Camargue was a small winery located in the Avignon region of France. Dominated bythe more popular wineries in the region, the company had struggled in recent years, despite theglowing reviews its cellar had received. The owner of Chateau Camargue, Pierre Camargue,attended an international wine show at the end of and was intrigued by the possibilities ofexporting to India. The European wine market was saturated, his companys expenses were risingdrastically, and he needed a way to boost cash flow and expand market share rapidly. Exportingto India seemed to be the ideal opportunity.Learning OutcomesThis case study relates to the following learning outcomes from the module Implementation ofMarket Entry Strategies in the course International Market Entry Strategies: Determine the best approach to implement a market entry strategy, analyzing the value ofpotential forms of each strategy. Implement a direct exporting strategy, whether exporting directly to foreignconsumersbusinesses or using intermediaries such as agents. Implement an indirect exporting strategy by finding and choosing an appropriate domesticintermediary, such as a trading house or confirming house. Establish and manage foreign direct investments FDIs in the target market.
Case study
What are the main market entry barriers that Chateau Camargue faces in entering the indian
In rome is nanat iuld be Explain our fet sonin stralgy for Chaleau Camargue to
Should Chateau Camargue consider a longterm foreign direct investment strategy in India?
Explain your reasoning.
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