Walmart entry to India

Topics: Retailing, Shopping mall, Discount store Pages: 11 (2376 words) Published: January 1, 2014


In November of 1962 Mr. Sam Walton was opened Wal-Mart. It is largest retail store chain in America. Wal-Mart itself has a big brand and the market leader of Retail sector in US. Wal-Mart employs 1.6 million associates worldwide in more than 3,700 stores in the US and more than 1,500 throughout the rest of the world. Strategy of Wal-Mart is the low price. Wal-Mart outlets is spread throughout the world and doing well. Vision Statement:-

“Our vision is to provide good quality and services to our customers,while remaining the market leader and striving daily to be the most admired company”. Mission Statement:-
“To provide quality products at an everyday low price and with extended Customer service…always.” Wal-Mart Slogan: - “Save money, live better”

The culture consists of Wal-Mart:-
Quality product at low prices “everyday”
Respect for the individual.
Service to our customers.
Strive for excellence.

Divisions of Wal-Mart-
Neighborhood Markets (groceries)
Sam’s Club (membership)
Discount stores (FMCG& apparels)
Wal-Mart super centers (groceries)
McLane (Acquired just now)

Divisions
Discount stores
supercenters
Sam’s club
Neighbour-hood markets
International Totals
942
238
71
37

SWOT of Wal-Mart:-

Competitive Advantage of Wal-Mart-
1. Supply Chain Management: -
This is one of the best competitive advantages. Wal-Mart has two main supplier P&G and HUL. The supply chains add the value to the company.

2. Price Leadership: -
Wal-Mart always sells product on low price and they forward this benefits to their customers.

3. Exchange benefit: -
The Wal-Mart customer can exchange their purchased product through any Wal-Mart outlets.

4. Brand Image:-
The strongest competencies of Wal-Mart are there brand image in the minds of consumer. It is the leader of the world retail industry.

RETAIL INDUSTRY IN INDIA

Retail industry is one of the largest growing industries in India. In India it has economy of 13% GDP. India has uppermost number of outlets per person and it is 7 per thousand. Retail sector has over 14 million outlets operates in India. Indian retail space per capita at 2 sq. ft. / person is lowest in the world and Indian retail thickness of 6 percent is highest in the world. India has an annual income of over 45 lakh from 1.8 million households. The retail industry is divided into two sectors; the first is organized and second unorganized sectors. a)Organized sector:-

It mostly target market is urban area and their target customeris high income and middle class. eg:- Hypermarkets, Retail chains, supermarket and Retail outlets etc., b)Unorganized Sector:-
It refers to the conventional formats of low-cost vending. It is mostly run by localities in their respective regions. Its target market is rural areas and semi-urban regions and their Targeted customer is middle and lower middle class. eg:- Local Kirana shops, general stores, street vendors etc.,

India Retail Facts
Total Retail: Rs.2,000,000 crore (Rs.20,000 billion)
Modern retail size: Rs.1,64,000 crore (Rs.1,640 billion): 8.2 per cent of total retail Employment in modern retail: 10 direct employment in retail and 100 indirect employment per Rs.1 crore (Rs.10 million) sales Total employment in modern retail: 1.65 million

Estimated indirect employment in modern retail: 1.65crore
Dependence on modern retail: Over 1.8 Crore people
The retail industry in India is anticipated to twice in worth from US$ 330 billion in 2007 to $640 billion by 2015. Actually, India has topped AT Kearney's annual Global Retail Development Index (GRDI) for the third year in a row as the most attractive market for retail investment. (AT Kearney GRDI ranks the top 30 emerging countries for retail development and identifies windows of opportunity for global retailers to invest in developing markets) There are many mergers and takeovers going on in recent time Wal-Mart acquired McLane....

References: www.wikipedia.com
www.google.com
www.authorstream.com
www.slideshare.com
www.walmart.com
timesofindia.indiatimes.com › Topics › Wal-Mart
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