Wal-Mart

India

In the late 1940s, when

Sam Walton was franchising a Ben Franklin's variety store in Newport, Ark., he had a simple but momentous idea. This insight would form a cornerstone of Walton's business strategy when he launched Wal-Mart in 1962.

In 2006, Bharti Enterprise join America largest retail store Inc. Wal-Mart. The partnership gave WalMart access to the India retail Markets.

Situation Analysis
Strengths Invests time and money
Weakness Not being able to control to Wal-Mart business. Modify supply chain management and logics to become successful in the Indian . Ability and flexibility to sell products across many of the sectors.

to train the Wal-Mart staff.

Hire and retain the

needed workers in India to successfully operate the new stores in the country.

 Opportunities Merge and form alliances

with other global retailers within the Indian market. Bharti to team up with the largest retailer in the world. Being apart of Indias 300400 billon dollar retail sectors

Threats Wal-Mart will always be the target of competition, locally and globally. The ability for the company to execute strategies in the US will not be the same in India. The ability to outsource to low cost regions will not be the same in India as the US.

 How is Wal-Mart joint venture with Bharti is

going to coexist/mesh with India traditional way of doing business?

 How does it effect local

business in the community? How do they adjust to the diversity in India? How does it better Indias infrastructure?

 Indians mentality save and buy shifted in 2000 Saving habit became habitual spending

Job opportunities Median 24 year old

67% below 35 52% under 24

Increase jobs

Small store owners Family owned Will they be out of business completely?

 Supply Chain

Management Workers
Middleman
Loss of jobs?

Bharti & its workers Increase Growth Possible growth

Other Corporations Many other companies averaging millions of dollars Will Walmart change the market of India?

 Walmart made the

joint venture with Bharti Enterprises in 2007 Best Price Modern Wholesale 17 total units

 Empirical Research

Households that respond to Wal-Mart

Infant or pet Weekend shoppers

Supermarkets

Competitive structure of industry Also by how consumers shop Supermarket managers biggest concern in upcoming years

 Exhibit 2: Indias Organized

Retail Sector Some estimates

(Page 15 of the Wal-mart and Bharti: Transforming Retail in India)

Growth of branded apparel Rose 10% in a 6 month period Consider yourself

1 Indian rupee = 0.0180 US dollars

RS 2,995 US 53.8525

 Outsourced R&D
Outsourcing firm

More expertise Adaptation of culture differences Eliminating culture shock Adjusted to the laws & regulations Ex. McDonalds took 8yrs Studied Indian culture & adaption strategies

 Partnership with local Business

Owners
Built trust Eliminating the native protest Generate revenue Invest/shareholders

Superior Strategic supply chain

implementation
Include the middleman Create job opportunities

 Wal-Mart Outsourcing research and development

Have a consultant company do their research for them Decreases spending from $2.3 billion

India Small business owners become joint partners with Wal-Mart

Have local businesses sell their items in the store

Both Create jobs within the store

Re-hire middlemen whos jobs where cut

 Wal-Mart Saves money Dont have to hire people just to specifically do R&D India Locals wont suffer too bad Potential investors from Wal-Mart could invest in their business as well Both Creating jobs for India boosts the countrys economy

 Wal-Mart Consulting company may not have the best interest for the company or country India Local businesses may not obtain a high profit or any at all Some advertisements may contradict local store owners beliefs

Resulting in pulling products from shelves

Both May crash the countrys economy if Wal-Mart does not do well

Impact of Wal-Mart Supercenter on a Traditional Supermarket: An Empirical Investigation. Singh , Hansen, Robert C. Blattberg. http://www.chicagobooth.edu/research/workshops/marketing/archive/works hoppapers/hansen.pdf. August 20,2012 . Outsourcing R&D http://www.inc.com/guides/growth/outsource-researchdevelopment.html Wal-Mart's Story http://corporate.walmart.com/our-story/locations/india