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1. Challenges faced by
Wal-Mart in India
Geritano, Hallelujah, Kledi, Zarina

2. Overview
Why Wal-Mart is successful in the world?
 Wal -Mart Background
 Wal – Mart Challenges
 Wal-Mart strategies to be successful in India
 Joint Venture Wal-Mart – Bharti
 What is Bharti?
 Opportunities for Wal - Mart
 Opportunities for India
 Break-up Wal-Mart – Bharti. Why?
 Publication bibliography

3. What challenges
did Wal-Mart
face in India?

4. Wal -Mart Background
 World’s biggest retailer.
 Largest Public corporation by revenue.
 One of the World’s largest Private Employer.
 Best-oiled supply chains – 61,000 suppliers in 50 countries
 Includes – Supercentres, discount stores, neighborhood markets
 Employs 1.9 M associates world wide
 Employs 1.3 M in USA
 More than 7000 stores
 Operates in – Argentina, Canada, china, Japan, Mexico, Brazil, etc
(casestudyinc)

5. Why Wal-Mart is successful
in the world?
Key components
 Vendor partnerships (Le Hien)
Long term contracts and buying in large quantities
In exchange suppliers sell at low prices
 Distribution management (Le Hien)
No middle men
 Technology (Le Hien)
•First to introduce the bar code system
•Also introduced the RFID technology
 Integration (Le Hien)
•Establishment of the online store at www.walmat.com

6. The mission of
Wal-Mart
was to enter the
market of India

7. Wal – Mart Challenges
 Can’t build relationships directly with farmers
 Indian farmers are allowed to sell their produce only to government-
appointed marketing committees
 Transporting agricultural produce across states is major problem
 Infrastructure is bad
 State impose their own tariffs and regulations
(casestudyinc)

8. Wal – Mart Challenges
 Local and global competitors.
•Local competitors: Kirana stores
•Global competitors: Tesco(U.K), Metro Group(Germany)
 Political problems
 Preference of fresh foods more than frozen ones
 Large population size and a strong macroeconomic environment
 Indian consumer has low brand loyalty and is very price-sensitive
 Indians have a desire for new products and services
(casestudyinc)

9. Wal-Mart strategies to be
successful in India
 Products - low price
 Variety of items
 Minimum costs
 Sourcing –Farmers
 No distribution centers
 Delivery - directly – store
(casestudyinc)

10. Joint Venture
Wal-Mart - Bharti
 An agreement with Bharti Enterprises
 Cash-and-carry stores
 Operations of Wal-Mat and Bharti
 Operate under the brand name “Best Price Modern Wholesale”
 First outlet - Amritsar, Punjab in north India
(casestudyinc)

11. What is Bharti?
 An Indian enterprise, Headquarters New Delhi (Wikipedia 2015)
 It was founded in 1976 by Sunil Bharti Mittal (Wikipedia 2015)
 Operates in 20 countries across Asia and Africa (Wikipedia 2015)
 Across telecommunications, retail, financial services and
manufacturing (Wikipedia2015)

12. Opportunities for Wal - Mart
 Economic Growth and increase in GDP of India
 Increasing Purchasing power of Indians
 Young population - spending power
 Rapid Urbanization
 Growing middle-class population
(Casestudyinc)

13. Opportunities for India
 The Retail Industry will be modernized
 Development of Infrastructures
 World-class shopping experience
 Employment to millions of Indians
 Elimination of middle-men and agents, thus protecting Indian farmers from
exploitation
(casestudyinc)

14. Break-up Wal-Mart – Bharti
Why?
Retail business requires deep pockets (Charles, Boykoff; 2013)
Low margins, high costs (Charles, Boykoff; 2013)
 Policy uncertainty (Charles, Boykoff; 2013)
Bribery scandal (Charles, Boykoff; 2013)
Wal-Mart's direction going forward remains unclear
(profit.ndtv)

15. Publication bibliography
casestudyinc: Management Case Studies and Articles “Wal-Mart In India: Case Study,” pp 3-16.
Available online at http://www.casestudyinc.com/
Why walmart is so successful. Le The Hien. Available online at
http://www.slideshare.net/LeTheHien/why-walmart-is-so-successful
Why Wal-Mart, Bharti split in India - NDTV. Available online at http://profit.ndtv.com/news/cheat-
sheet/article-why-wal-mart-bharti-split-in-india-328426
Riley, Charles (2013): Wal-Mart breaks up with Indian partner Bharti Enterprises. CNN Money,
Pamela Boykoff contributed reporting. Available online at
http://money.cnn.com/2013/10/09/news/wal-mart-bharti-india/, updated on 10/9/2013
Wikipedia (Ed.) (2015): Bharti Enterprises - Wikipedia, the free encyclopedia. Available online at
http://en.wikipedia.org/w/index.php?oldid=645273314, updated on 3/21/2015