India. Costco Case Analysis. Over View. Business Model and Customer V alue P roposition . Economy Government Market Access Infrastructure Real Estate. Summary Conclusion. Business Model. Customer Value Proposition. Economy. Government.
Business Model and Customer Value Proposition
Customer Value Proposition
Regulations and Duties
There are complex license and duties for most goods, some are in excess of 240%. There are special economic trade zones that do offer some tax breaks. They have been a member of the World Trade Organization since 1995.
Acceptance of Goods
A major concern is their policy on quantity. Some products, normally subject to license, are not authorized to enter the country when the authorities feel that the quantities bought were too huge.
The primary factors here are organization and development for large structures. They are clearly dominated by small family owned business with the average size of 60 square meters.
Level of Corruption
Corruption seems to be wide spread with the highest being reported in the Police sector. A study conducted by Transparency International has found that corruption in public services affecting the day to day needs of citizens is far more serious than is commonly realized
The India market is dominated by small family owned businesses but has seen an increase in franchising. It
Is key to note that on the commercial side the big players such as the US and the European Union are still having trouble with the governmental regulations.
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