Section A: Read the case study and answer the questions that follow. Tiffany heads to India in tie-up with Mukesh Ambani's Reliance Upmarket US jeweller to tap rising incomes in the country as it seeks to offset weakness at home. Tiffany is entering India at a challenging time as economic growth slows and consumption suffers from a liquidity squeeze. Mukesh Ambani's Reliance Industries is bringing upmarket US jeweller Tiffany to India through a joint venture, as high-end global retail brands vie for a slice of what they hope will become one of their most important markets. For Mr Ambani, India's richest man, the tie-up marks another step forward in his efforts to transform the $120bn Reliance conglomerate from an oil-products giant into a consumer-facing business offering a suite of services from retail to telecoms. The company in May turned heads after buying iconic British toy chain Hamleys. Reliance said on Thursday that the two plan to start opening outlets in Delhi this year and in Mumbai in 2020. They did not provide any details on financial terms of the deal. The New York-based jeweller has embarked on a global expansion in order to diversify away from its mature US home market, with Chinese consumers becoming one of its most important sources of revenue. The company has been hard hit by the global trade war, however. In June it lowered its earnings guidance on concerns about higher Chinese tariffs on its products. Its international sales fell 3 per cent in the quarter ended April from a year earlier. As a result, India has emerged as an enticing prospect for Tiffany and other upmarket brands. The country's luxury jewellery market is worth roughly $8bn, more than doubling since 2012, and is expected to grow 5 per cent a year through 2023, according to Statista. With its 1.4bn population, rising incomes have allowed millions to splash out on previously inaccessible goods. "Indian commerce centres with their growing luxury consumer base presents a unique opportunity," said Philippe Galtie, Tiffany's executive vice-president of global sales Darshan Mehta, chief executive of Reliance subsidiary Reliance Brands, said "Tiffany needs no introduction in India", highlighting its strong brand recognition in the country. Reliance, a major petroleum refiner, has made bold moves into new sectors in recent years. In 2016, its Jio telecoms division launched its mobile services commercially, growing to become a business with 300m customers and being seen as having revolutionised access to mobile phones in India through cut-price contracts. Its retail business, launched in 2007, is the largest by sales in India, selling brands such as Burberry, Armani and Hugo Boss in the country. Mr Ambani, who according to Forbes is worth $46bn, this year announced plans to start an ecommerce venture, but has revealed no further details. Tiffany, which operates 300 stores worldwide, is entering India at a challenging time, however, with economic growth slowing and consumption suffering amid a severe liquidity squeeze that some economists fear could worsen in the coming months. Source: Parkin, B. (August 8, 2019). Tiffany heads to India in tie-up with Mukesh Ambani's Reliance. Financial Times (online) (cited 11 October, 2019). 2. Using evidence from the case and your knowledge of corporate strategy, discuss the merits and disadvantages of Reliance Industries becoming involved with the US Luxury jeweller, Tiffany. (Maximum Wordcount = 400) (30 marks)