Case Study:Wal-Mart and Bharti Transforming Retail in India
This paper is an analysis and evaluation of Wal-Mart and the future venture into the retailsector of India. The challenges that Wal-Mart needs to resolve to become successful range fromthe cultural differences to problems with supply chain management in India. The analysis belowidentifies the challenges of many factors dealing with the Wal-Mart, Bharti and the Indian retailsector. These factors for Wal-Mart would deal with the ability to operate in India efficiently asthey do in the US. In addition, Wal-Mart to be successful will have to sort out problems with thegovernment, culture differences and the partnership with Bharti. These factors for Wal-Mart andBharti will be presented in more specific detail through a SWOT analysis. The analysis willevaluate Wal-Mart as a company in relation to the future operation in the Indian market. Thenthe Bharti Company will be analyzed using a SWOT to pin point how the company will fit intothe overall plan of Wal-Mart operating in India. The report will further evaluate the Indian retailsector through a competitive industry analysis using the Porter’s 5 forces model. This model willdetail the threats to the market entry, supplier power, buyer power, availability of substitutes andcompetitive rivalry as they relate to the India retail sector. The report will then offer alternativesfor the Wal-Mart company. These alternatives would include not progressing forward withinIndia, chose a global market with less regulation, focus business to become s specialized retailer and collaborating with a different company other then Bharti to expand in the Indian retail sector.The analysis will close with recommendations to focus changes on the culture, consumer behavior, collaborating with current vendor and suppliers and work to improve the image of Wal-Mart and how the company can make positive changes in the retail sector for the people of India.2
Wal-Mart and the Indian Retail Sector:
The retail sector in India remains one of the best-untapped sources for internationalcompanies to grow market share and future profit. The retail market in India is one that manycompanies are trying penetrate. One major U.S. retail company, Wal-Mart, has been trying toenter and succeed in expanding the organization’s global footprint. Wal-Mart is one of thelargest and most successful retail companies in the world. Wal-Mart is planning to use their business expertise in the areas of organized retail, pricing strategies and logistics in supply chainmanagement to change the retail scene in India.Currently, India’s market is at a stage where customers need more variety in products andretail formats. The old systems of retail outlets in India have consisted mainly of Kiranas andMandis to name a few. Mandis are types of markets set up by the state government for the sale of agricultural produce directly from the farmers. Kirana stores, which are independently ownedand operated primarily, sell necessities, and groceries. Other retailing formats such as streetcars,pavement shops, public distribution systems, kiosks, and weekly markets are unique to India andhave been around for a long time.India has seen an emergence of modern large-scale stores such as supermarkets, specialtystores, chain stores, department stores; hypermarkets, factory outlets and discounters enter theretail sector. Shopping malls and new retail outlets with more shops have transformed thebusiness environment in India. The changes in the retailing culture have pushed this businesssector to make changes in how customers are buying and consuming goods (Srivastava, 2008). Challenges for Wal-Mart in India
While the Indian market may look very lucrative for Wal-Mart, they will be faced withmany challenges. These challenges will range from entering the market, successfully operating inthe market and collaborating with Bharti in the business venture. These challenges are...
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