The Model For Wal Mart

1207 WordsDec 8, 20145 Pages
The OLI model for Wal-Mart in India: The “OLI” or “eclectic” approach to the study of foreign direct investment (FDI) was developed by John Dunning (1977)) Ownership advantage: The largest retail company in the United States is the Wal-Mart Stores Inc and it also has been ranked number one on the Fortune 500 Index. Last year, Wal-Mart had revenues of $191 billion. Wal-Mart 's 2002 sales topped $218 billion, with sales growth at 13.8 %. Its 2002 net income was $ 6.7 billion, a growth of 6 %. In 2002 IT had 1,283,000 employees with a growth rate of 11.2 %. Wal-Mart is the largest retail store in the United States, and there is no larger retail chain in the world than Wal-Mart. At present it operates over 4,150 retail facilities globally. Wal-Mart Stores Inc. started joint venture business in India with Bharti Enterprises as a part of international business. The joint venture purpose was to build and operate cash and carry superstores in India under the name Best Price Modern Wholesale. As partners, the two companies jointly built 20 superstores. The first store opened in Amritsar in 2009. It hasn’t opened a new one since October 2012. (www.fortune.com). Location advantage: Although India has a retail sector worth $ 350 billion which is indicated by Pwc research but it also has 8% low organized retail penetration. Annual Growth rate is between 15% and 20% .Due to following factors India is becoming a dynamic and exciting destination: 1)The market size is large 2) Retail

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