China and India are two of the emerging markets with the highest potential in the world. Waitrose positioned as a high-end supermarket, which both countries have large business potentials with their rapid growing high-purchasing power population. However, it is crucial to fully understand both markets’ political backgrounds, economic performances and social-cultural contexts before investing in those markets. The following report will analyze the fundamental factors for the British company to consider that is crucial to the final decision.
Cultural indifferences between China and UK raise risks in daily operations and management. The huge differences for long-term orientation and high text communication could mislead employees to misunderstand business goals. In addition, it requires a certain extent of understanding to the local business environment, like sending gifts and bribing to develop business Guan Xi. In spite of this, China's stable economy and political environment provides a favorable condition for UK companies to operate locally.
India was a former colony of UK; therefore traces of the UK influences still remained in the country. Yet India’s political instability and corruption greatly reduce the possibility to integrate into the market. Their high inflation rate reduces consumer’s willingness to pay, hence affecting the profitability of doing business in the market. With very diverse cultural backgrounds, differences in working ethics are also important obstacles for Waitrose to overcome.
1. Background Information
1.1 Company profile
Waitrose is one of the highly recognized supermarket brands in UK, owned by Britain's largest employee-owned retailer John Lewis Partnership. Currently it operates 305 branches and online website across the UK, and is located primarily in major city center. Internationally, Waitrose has launched two branches in Dubai, and supplied it products to stores around the world. In 2014,...