Sample Comparison Matrix Requirement Company A Company B Company C Company strategy is to become the industry leader in GPS mapping software: $158 million $72 million $210 million Estimated purchase price of less than $250 million Not a participant in this market Commands 24% of this market Not a participant in this market Expand into commercial aircraft GPS Has 25 support engineers Outsources this function. Contracts may be transferable. Has 12 programmers; some may be ok to move to customer service Acquire 15 new engineers for customer service Commands 18% Commands 3% Commands 12% Grow share to 51 percent in our current market
NEW DELHI (Reuters) -- Wal-Mart Stores Inc., the world's biggest retailer, is entering India's sprawling retail market through a tie up with Bharti Enterprises Ltd., beating off a challenge from Britain's Tesco Plc.
The joint venture will start opening stores in Asia's fourth-largest economy from 2007, and Bharti Enterprise Chairman Sunil Mittal said he expected it will have several hundred stores across the country in the next 4 to 5 years.
Bharti did not immediately disclose financial terms of the deal, but the Financial Express daily said earlier this month that the two firms would initially invest $100 million, going up to $1.46 billion, citing industry sources.
The Indian retail industry is estimated at about $300 billion, and is forecast to grow to $427 billion in 2010 and $637 billion in 2015, according to consultancy Technopak Advisors. But small local stores account for 97 percent of the market.
"This joint venture is a winning combination. Wal-Mart's logistics skill and Bharti's execution capability will create a potent force in the Indian market," Gajendra Nagpal, director at Unicorn Investments.
"Bharti already has a retail network and is a household name in telecoms, and this deal will prove its capabilities as a company with strong execution capability."
"The joint venture with equal stakes will operate in areas where the government allows foreign investment in retail like cash-and-carry and logistics," Sunil Mittal said.
NEW YORK (Money) -- First Data Corp. hoped to enhance the value of its financial services businesses by spinning off Western Union
Western Union's chief business is person-to-person money transfers. By separating this consumer service from commercial businesses, First Data hoped to improve both its balance sheet and its long-term growth prospects.
Western Union has taken on $3.5 billion of debt, leaving First Data with only $2.1 billion. That should give First Data the financial flexibility to make strategic acquisitions that enhance its services for commercial customers.
The impact of the split on earnings growth for both companies is more complex. Longer-term, Western Union is aiming for at least 12 percent annual growth in earnings per share. But the company projects only single-digit gains for the next couple of years.