Firms` Strategic Decisions Theoretical and Empirical Findings

Volume: 1

Indexed in: EBSCO.

This eBook presents recent case studies on firms and their strategy employed in specific scenarios and industries. Readers will find, in this volume, an analysis of oligopolistic industries done by ...
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Strategic Decision Making: The Case of the Displaced Unorganized Retail Firms by the Organized Corporate Businesses in India

Pp. 229-244 (16)

Kaliappa Kalirajan and Kanhaiya Singh

Abstract

The question of whether opening up the market for foreign direct investment in retail businesses will be a hindrance to the survival of the small unorganized retail outlets is still a matter of debate. Based on a primary survey data from the National Capital Region and Chennai in South India this study shows that the organized corporate retail businesses (OCRB) did displace some small unorganized retail outlets (SURO). Drawing on the location theory, it is argued that the displaced SURO relocated themselves in fringe areas of the cities and earned more profits. This indeed is an efficient strategic decision making by the SURO.

Keywords:

India, location theory, organized corporate retail businesses, small unorganized retail outlets, strategic decision making, urbanization.

Affiliation:

Crawford School of Public Policy, J.G. Crawford Building, #132, Lennox Crossing, The Australian National University, Canberra ACT 0200, Australia.