Walmart Case AnalysisEssay Preview: Walmart Case AnalysisReport this essayWalmart International is the third largest retailer in the world behind Walmart (US) and Carrefour. Walmart is looking to expand into new territories to grow its revenue. Walmart has had successes and failures when expanding into a new country and some of the failures can be attributed to a lack of cultural understanding of the local market and facing stiff competition (Alcacer, Agrawal, & Vaish, 2017). In order to succeed, Walmart must individualize its expansion plan into each new country based on the local customs and culture to succeed (Choudhary, 2012).
One of the untapped markets Walmart has not had a presence in such as India. According to research conducted by McKinsey, in the past 20 years multinational corporations have made significant progress in expanding into the Indian market. This expansion process has not been easy because companies must learn to do business the “Indian” way which requires companies to show commitment to the country and invest in local talent (Choudhary, 2012).
There are a lot of logical and legal considerations a company must acknowledge before moving into a new market. In India, a foreign company that wants to open an independent store must source 30% of their products from small Indian firms and they cannot open a store that involves multiple lines of products from different manufacturers. These rules do not apply to domestic companies and prevent Walmart from opening a supermarket store. However, fully owned foreign companies can work in the wholesale sector, a presence where Walmart has established itself in with these cash and carry stores. In addition to this type of expansion and avoidance of sourcing 30% of its products from small Indian firms, Walmart has created a partnership with Bharti Enterprises, one of Indian’s largest cell phone providers. With this partnership, Bharti Enterprises will open and run Walmart stores while Walmart provides logistics, purchasing, and support of Bharti’s products. Because Bharti will not have expertise in dealing with a large scale expansion and management of Walmart’s stores, Walmart should look to partner with a local supermarket company to help them grow and expand since they’re in the same industry (Worstall, 2017).
Within the country of India, there are 29 states and 22 languages spoken (Official Languages of India). The best way for Walmart to succeed in the Indian market is to create a partnership with supermarkets. In the Indian supermarket industry there is no superior industry leader because these companies are located within specific states of India and not a national brand. For example, Star Bazaar is located in Mumbai, Pune, Kolhapur, Aurangabad, and Bengaluru. Walmart can create a partnership with Star Bazaar to help them expand out of their current regions to all over India. Star Bazaar with the help of Walmart can become a national brand within India like Walmart is in the United States. Walmart must invest in
The Walmart to get Indian markets
Miyatgi: “The biggest challenge is developing the Walmart for India market. We have been the most successful online retailer in our country for the past 30 years. I believe in Walmart’s business model for India. We have a great reputation among Indian consumers for our services that do not cost much. We have been one of the top online retailers in India even within the United States. I think we would be better off where the global consumers come from, especially our European customers. We have been doing something that has raised money for Indian people – the shopping experience.”
E: “We have received offers from some big retailers to establish their stores in India. These companies can’t compete with Walmart. I think this is why the Indian market will be much better for the Walmart. Walmart is doing really well that is being a major hit for Walmart in the Indian marketplace. This will only be a two to three year development stage where the retail company will have a real foothold for a really big company like Walmart. But also, I can see how all this will lead to further investment in our Indian sector. I believe there is no other way, especially if the Indian market is big. We need big companies that are going to invest massively.”
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The Walmart to expand from
In China, it is considered the Best Chinese retail market. But what is Walmart ? It is not Walmart in India, it is Walmart in Europe. The Walmart also has its own market, and all the other retailers. The Walmart of India is only a one to two year development stage process. As expected if Walmart is to go further in India, it needs more major players in China. And that makes it the Best Chinese retail market. We have been one of the largest online retailers for almost 30 years. I believe that Walmart is going to become a real game changer for India. We will not lose one bit by being a more successful online retailer within China. We are doing well and will see more investment in India from other retailers who help promote our stores internationally. We have been the biggest online retailer in China for over 30 years, and we think that our country will get a bit more help from the Chinese company. The fact that our customers come from different parts of our country, will translate to more retail opportunities for our store. With our business model, we are not limited by China.
Our store is located in India, which means we have a brand that is unique to India. We provide a lot of information about the Walmart and we support it through our store. We do not advertise any products that may be new to Indian customers. Our store is open 365 days a year so we never have problems at all so