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 should open the stores, as 2 of the competitors of the company have operation in North India. It will help the company to get good review.
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Answer 2

Yes, the company must be opened in the North Indian markets.

• Since the company has a large share in the South Indian market, it may have high goodwill which can act as a trustworthy factor when venturing into the North Indian markets.

• Two of his competitors are already operating in the northern market meaning that the market is not bad and is profitable.

• Using the goodwill of the company they can establish a good reputation among the North Indian market and make a place in that market.