Recommendations for Market Entry in India (Gap Inc.) Essay

Recommendations for Market Entry in India (Gap Inc.) - Essay Example It is recommended that Gap Inc. take immediate advantage of this market opportunity in order to secure Indian consumer loyalty to Gap brands prior to competitor market entry; which will likely escalate with the removal of Indian import quotas. Gap Inc.'s strengthened balance sheet and debt reduction activities leading to U.S. $3 billion in cash and investments (Gap Annual Report) suggests that the company can adequately support the demands of higher logistics costs and employee compensation demands within this region. When retail companies consider additional retail expansion they are faced with a variety of options for market entry: that is, acquisitions, franchising or joint ventures. Due to the obvious drawbacks in securing local talent to effectively operate franchise facilities in the short-term, it is the recommendation that Gap Inc. consider foreign direct investment as an appropriate option for initial market entry. Direct corporate investment will accomplish two distinct objectives: First, to familiarise the firm.