Case Study Of Walmart In India

Dispatch advised me that Walmart LP employee, Marion Edwards, had a female subject detained in the LP office. Edwards was requesting that the subject be trespassed from the store.

Thus Wal-Mart is looking outside the box for opportunities. Globalization efforts happened quickly despite the fact that many people were skeptical about Wal-Mart’s opportunities in the international marketplace. In the year 2006 over 40% of Wal-Mart’s stores were internationally located.

Walmart faced strong entrenched competition in Canada and Europe. In these developed countries, they couldn’t gain critical mass through internal growth, so they had to acquire companies that have been in the market already. They acquired Woolco, a money losing operation, applied many of the American business practices, and within a few years, the Canadian operations were successful. They have 317 stores, and they account for more than 35 percent of the Canadian discount and department store market. In Europe, Walmart entered Germany by acquiring the Wertkauf hypermarket chain in 1998 and entered the UK by acquiring the 229-store ASDA group. They the leader and are now losing ground to Tesco. A major problem for Walmart in the European market is overexpansion. Accompanied with the famous “Always low prices” approach, they met large resistance from the competition and regulators. Large price wars began because Walmart was accused of underselling the competition. They struggled to build a strong competitive base in German losing more than $1 billion. They were unable to create a competitive advantage, so they sold their operations to a competitor, Metro. They also faced problems in Korea, so

Wal-Mart has preferred to expand internationally by buying existing operations and converting them to Wal-Mart stores. The company entered Canada by purchasing the Woolco chain that was competing with Kmart in that market, and it entered Mexico in much the same way. The company entered Europe by purchasing the Asda stores in the United Kingdom and an operation in Germany that later failed. Wal-Mart entered foreign markets via acquisition for a couple of reasons. The first is that the company relies on real estate as the cornerstone of its business. The second is that as a cost leader, Wal-Mart needed to build up economies of scale that would allow it to enjoy strong bargaining power in these markets immediately. Moreover, moving rapidly into a market minimizing the ability of competitors to register an adequate response.

•  India's $250 billion retail business is the eighth largest in the world and has the potential to grow 7 per cent by 2011. [McKinsey Report] For a company already dominating the world markets, this is an un-passable opportunity.

Maastricht University School of Business and Economics Maastricht, 4th December 2011 Bastian Hauk, BH ID number: i6034999 Study: International Business Course Code: EBC1009 Economics & Business Group Number: 31 Economics Tutor: Khan Writing Tutor: Hetty Bennink Writing Assignment: Main Paper

On an international scale, Wal-Mart is seeking to acquire existing retail chains instead of building new ones due to complex local regulations. With competitors combining forces to strengthen their operations, Wal-Mart’s international operations were required to meet local cultural tastes and intense competitive conditions.

Walmart’s strategies during 1990s, their strategies in the United States were successful and the strategy is their retailer exported its big box, low price model and the successful was expected in foreign markets. Walmart also had a success at another foreign country not only at United state such as Mexico, China and U.K also. Although they are already succeeded in many foreign market but their strategies that is offered lowest price to customers were failed at Germany because of the resistance from established retailer.

The media coverage of the expansion plan of Walmart in the India has focused mainly on the negative impact of the entry of such a retail giant on the small retail businesses. The retail business in India contributes to around 14 to 15 percent of the Indian GDP. A major portion of the Indian retail shopping takes place in small groceries and retail shops in open markets. In most of the cases, the seller is the owner. Continuous price bargaining is an

At a first glance, India seemed to be the most promising market for investment for several reasons. First of all, India’s population increased quickly reaching to be 1.2 billion in 2013. The middle class which was the main Walmart’s target was estimated at 25% of Indian, and was anticipated to grow to 583 million by 2025. Moreover, there was an important economic growth noticing the increase of GDP which did India, the fifth larger retail industry in the world with the size of retail trade to reach at $200 billion. India’s young population which constituted a big purchasing power was growing, too. This generation was born when India’s economy began to boost, so, they regarded that the foreign investments were a good way to create more employment opportunities at the retail sector. Also, because of the advertising and promotional activities, these young people were receptive to foreign stores like Walmart regarding them prestige symbols. Last but not least, Walmart knew that India offers cheap raw materials and workforce. In this way, Walmart tried

Wal-Mart will have to wait for some time before the Indian government is able to change the law that does not allow foreign, multi-brand retail stores to set up shop. These large retailers are seen as a threat to the small retailers dispersed amongst the country 's retail scene. These small retailers provide employment to tens of thousands of people which may become unemployed in the case that India allowed the entrance of large multi-brand companies. These rules don 't apply to the wholesale sector creating a loophole through which Wal-Mart may set up a joint venture with local companies such as Bharti Enterprises. The government allows 100 percent FDI in cash-and-carry operations and 51 percent in single brand operations. Wal-Mart would therefore have the opportunity to enter a cash-and-carry operation with a 50 percent stake.

While it is not modeled on any one foreign retailer, the ‘basic construct’ is taken from the experience of a number of successfully managed retail companies. It has leveraged expertise for a critical component like technology from all over the world, going as far as hiring expatriates from Littlewoods and using state-of-the-art ERP models. Shoppers’ Stop went a step further by even integrating its financial system with the ERP model. Expertise was imported wherever it felt that expertise available in-house was inadequate. But the store felt there was one acute problem. A shortage of the most important resource of them all was trained humans . Since Indian business institutes did not have professional courses in retail management, people were hired from different walks of life and the training programme was internalized. By 1994, the senior executives at Shoppers’ Stop were taking lectures at management institutes in Mumbai. The Narsee Monjee Institute of Management Studies (NMIMS) even restructured its course to include retail management as a subject. Getting the company access to the latest global retail trends and exchange of information with business greats was an exclusive membership to the Intercontinental Group of Department Stores (IGDS). It allows membership by invitation to one company from a country and Shoppers’ Stop rubs shoulders with 29 of the hottest names in retailing – Selfridges from the UK, C.K. Tang from Singapore, Lamcy Plaza from Dubai and the

There is a lot to be said for big retail to come to India, but we cannot simply be taken in and mimic something which is being pushed down our throats because those who make the policy appear to not have the faintest clue on how retail really works in India

Indian market is one of the largest market with high purchasing power. Lot s of work to be done in the field of logistics & supply chain management. It is not possible for Indian government alone to developed world class infrastructure and other allied facilities because of huge investment requirement . FDI in India has in a lot of ways enabled India to achieve a certain degree of financial stability, growth and development. In order to create new & more jobs , FDI is the success mantra now. FDI no doubt is creating innovation in retail sector but simultaneously it may pull down the local and domestic retailers of India which is surely a concern to worry about for Indian government. It reduces the gap between farm prices

However, it is now set to grow at 25-30 per cent per annum. In developed countries, organized retailing makes for over 70 per cent of the total business. Recently, the Government announced its intention to open up the retail sector to foreign investment. It is still, however, debating whether to allow 26 per cent or 49 per cent FDI in the sector. Initially, the idea was to begin with 26 per cent and then gradually liberalize it further. However, since China moved from 49 per cent to 100 per cent FDI in this sector last year, the Commerce Ministry and the Prime Minister's Office (PMO) appear to be inclined to go for 49 per cent FDI at one go, despite opposition from Left parties. Even as the government is debating the level FDI in of retail, a number of foreign players, including the world's largest corporation, the $288- billion Wal-Mart Stores, Inc., have announced their intention to enter India in a big way. With the impending opening up of the sector to overseas investment, they are now keen on forays into the sector in partnership with multinational chains. According to industry analysts, as many as 20 big Indian companies are working on plans to enter the sector in partnership with foreign investors. For instance, it has opened up the real estate sector by allowing 100 per cent FDI in the construction projects. The move is expected to attract foreign funds and new technology into the market. Second, Foreign Trade Policy 2005-06 has