Why Did Walmart Choose India In India

This report is based on the comparison between two organizations that deals with the Retail Company that operates hypermarkets. The report consists of a comparison between Canadian business and Indian business. For this project I have chosen Canada’s Walmart and India’s D’mart the Canadian Walmart is the multinational retail corporation.And Indian D’mart deals within India only.

Walmart’s global experience was the learning foundation for retail giant, having the capacity to see where their plan of action fits in with various societies around the globally (Loeb, 2013). The premise of Walmart's development and achievement will depend on passage techniques, and social understanding in various regions (Karen Robson, 2013). Walmart offer to acquire the South African retail chain, Massmart in September of 2010 (Karen Robson, 2013). In the event the deal went through and the acquisition would represent as the U.S. retail mogul’s biggest acquisition in an emerging market as the first by global retail chain in South Africa (Karen Robson, 2013) .

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

However, even though Wal-Mart has developed such muscles as a multinational retail company, it has failed in some foreign markets and withdrawn services. Despite the fact that market cultures between Europe and America do not vary much, Wal-Mart got chocked out of the rich German market; the problem caused mainly by cross-cultural idiosyncrasies by the Germans. The same case happened in South Korea in 2006 when Wal-Mart had to bow out of the market that is not as much pro-American system. While in Japan, Wal-Mart failed to influence the market even by their low-pricing strategy due to failure in beating customer prejudice. In these cases, Wal-Mart has learned that the foreign markets are not always like America, thus thorough market study should

One of the largest retailer in the United States is known to many of us as Wal-Mart; boasting over 3,500 domestic stores in the United States, with continued growth in their numbers…and about 1,300 locations in Canada, Mexico, the UK (only Western), Germany, Asia and South America (Mergent). Many of these stores include Supercenters, Sam’s Clubs, and smaller Neighborhood Market centers. Wal-Mart primary focus is on based on six strategic merchandise units: grocery, entertainment, hardlines, health and wellness, apparel, and items for the home (Mergent). Since the begininning of the company in 1962, Wal-Mart has skillful continued growth and prosperity. Its long standing history of profitability and prominence thoughout North America, are key indicators of its future success.

•  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.

The stores of Wal-Mart are the biggest retail company that operates within the United States of America. The company has received the first position in the Fortune 500 Index Fortune Magazine for a substantial number of years. The company has managed to embrace a distinct corporate strategy whose goal revolves around dominance into the already existing retail market. There has also been an increase in the manner for which expansion activities of the business are conducted. Numerous ventures have been made into the United States, as well as other international markets.

Walmart begun to explore the global markets in early 1990s. Its first expansion was in Mexico, where Walmart ran its retail business as joint venture with the largest retailer Cifra S.A. in Mexico. The Walmart’s format proved to be quite successful in Mexico. Followed by year 1994, Walmart entered Canada market by acquisition strategy. In 1996, Walmart penetrate China by opening Sam’s Club and supercenter in Shenzhen, and acquisition of hypermarket chain called Trust-Mart in 2007. Walmart’s implementation of its low price and multi store formats strategy ensure its success in international expansion in these three countries.

Thus it was looking for an ideal partner to enter into the Indian retail sector. In November 2006, Walmart announced its entry into the Indian retail sector through its joint venture with Bharti. It initially planned

To accomplish its goal, Wal-Mart would have to work through its suppliers to increase the number of fisheries and processing plants in the MSC certification program. Kumar felt that his efforts were helping to secure and expand his business with Wal-Mart in the long term. With the MSC certification, again looking into the long run, Walmart is looking to improve its image which has been a problem in past years. Wal-Mart was said to be frauds, in that they were promoting one thing, but behind the senses they were really not doing all of that to cut cost. Taking these extra actions now could prevent a lot of problems in the future and secure good business

Walmart is the largest supply chain in the world which distributes different products of multiple firms. For the last fifteen years, Walmart has grown significantly in terms of revenues, sales volume, profits, and gradually gaining its market share. In addition, the firm has successfully to make a significant transition from a regional retailer to become a world largest brand. The main reasons contribute to Walmart?s success due to smart management, adapt new latest technological advance, strategic partnership collaboration, innovate operation system such as hardware and software application.

Their main advantage is the “cross docking” method which enables Wal-Mart to maximize efficiency in the supply chain and most importantly in inventory. Cross docking is the method of directly transferring products from an inbound truck while directly loading the materials into outbound truck trailers without extra storage during the transfer process. The components of the supply chain for Wal-Mart are purchasing, distribution, integration and operations. By Wal-Mart being ahead of their competitors allows them to win the competitive pricing role in businesses. This alludes to the fact that Wal-Mart’s efficiency provides them with tremendous savings in which they can pass on to the customer. Wal-Mart should continue to use the Cross docking strategy in India since it amounts to a big portion of the companies advantages such

Global Retailing is one of the largest industry spread all over the globe, to meet needs of the consumers of all caste and religion. It is not necessary for a company to be physically to be present in the country to make transactions of goods or money. Instead, global retailers use the help of suppliers and local market to satisfy the needs. But now-a-days the trend is changing, retailers are now making and producing their own brand under their own shelter to meet their company’s respective motto and mission. When we talk about Global Retailers of International Retailers, we come across Walmart, Tesco, and Carrefour as the major industries responsible for Global Retailing. The grocery sale of top four retailers exceeded more than $600 billion in 2011, and I was forecasted to reach 2.5 times more in 2016. The Global Retailing operates in an oligopoly market because it is dominated by a few suppliers in the market.

Wal- Mart in order to capture the Indian market is trying to introduce low price strategy on their products which inturn affect the other local businesses. Local traders later also should implement this pricing strategy which may affect their profit margin. But in return the consumers may benefit a lot from this. Due to the entry of Wal –Mart into the Indian market the competition may increase between local retailing businesses like Pantaloon, Reliance etc. we can see a tough competition between these business units in future . From the analysis there is advantages and disadvantages for Wal-Mart to enter in the Indian retailing system. From the arrival of the Wal-Mart to India FDI will be increased in India and most of the retail stores will have the subsidiaries in many of the places to increase the availability of the customers. Most of the foreign retail outlets is

Walmart, the world’s biggest retailer, made entry into India through a Joint Venture with Bharti Enterprises in 2007 mainly to minimize the risk borne. The JV was through cash and carry supply chain management of whole sale operations and back end support of Easy day chain of retail stores which Bharti established in 2008. The US retail giant was forced to follow a Brownfield FDI strategy since the Indian rules during the period prohibited front end investment in multi brand retail. Easy day expanded to more than 190 stores all over India over a period of 6 years. In 2013, when the Government was going favorable towards FDI in multi brand retail Bharti and Walmart announced break up in their 50/50 venture.