WALMART’s Entry Into Indian Market. Is it Good For Consumers ?Presented by : Team Warren Buffet.
• WALMART is an American Retail Industryfounded by Sam Walton in the year 1962.• WALMART has 8,970 stores in 15 countries,under 55 different names and over 2.1 millionemployee’s• Headquarters is in Bentonville, Arkansas, UnitedStates.
Retail: Porter’s Five Force Analysis Threat of Entry Threat of SuppliersHigh both in unorganized Low and organized space Level of Threat in the Industry Threat of Rivalry Threat of Buyers High Medium to High Threat of Substitutes Medium to High
• WALMART entered into Indian market with the help ofBharti Enterprises through a 50:50 Joint Venture Policy.• Bharti Enterprises is one of India’s leading businessgroups with operations in over 21 countries across theglobe and interests in telecom, financial services, retail,fresh and processed foods, and real estate.• The first Bharti WALMART in India was opened onMay 30th 2009 in Amritsar and was named “Best PriceModern Wholesale” store.
Wal-mart Supply Chain Flow Chart Distribution Centre Retail StoreManufacturer Headquarters Manufacturer Retail Store
• WALMART in Indian Retail Market has its ownperceptions on the Consumers and the retailers aswell.• As we know Consumer behavior varies through outthe globe, WALMART has to imply special strategy toovercome the changing consumers behavior.•Some of the basic needs of a consumer are • Low price products without compromising the quality. • Availability of different products at one store. • Ease of access and transport, etc.
Effects on other Retail Industries.• As we know that the Indian Retail Marketing Consistsof huge number of Small scale traders, local shops,whole sellers, etc. The entry of WALMART may resultin a huge marketing competition.• Some of the retailers like Reliance, Big Bazaar, Sparand so on will have to implement a new supply chainto compete against WALMART.
• WALMART in order to capture the Indian market istrying to introduce low price strategy on their productswhich in turn affect other local businesses.• Local traders later also should implement this pricingstrategy which may affect their profit margin. But inreturn the consumers may benefit a lot from this.
Key Highlights• Contributing 14% to India’s NGDP• Providing employment to 7% of itsworkforce.• Highly regulated Indian Retail Market• Crucial mainstay of Indian economy
In order for the WALMART to be a success ithas to follow some of the strategies. • Establish a efficient partnership with Bharti. • Design a effective Supply Chain System. • Analyzing the needs of the Indian Consumers. • Not only focusing on the Profit but also on the Consumers Relation.
By analyzing all the aspects of both the Consumers andRetailers, the entry of WALMART would help theConsumers in the following way.• First of all this would create a healthy competition amongIndian Retailers.• Improve in the competition results in the better pricing strategy, hence the products will be available for more less price.• Consumers would be more exposed on different productsfrom different parts of the world.
ConclusionThe WALMART in Indian market would helpboth consumers and non consumers in manyways,• Firstly Improves the way that the Indian Retail Systemis working.• Secondly helps in providing more employmentopportunities.• Thirdly improves the Indian Economy.• Consumers will be exposed to more advancedProducts, thus improvising the technology.
• Helps the local producers to sell there products easily.• Brotherhood amongst the two countries( India & USA )would improve.• Taxation on imports and exports would be reduced,and• Also helps to achieve a better reputation in the presentglobalized market.• India is the second largest market in Asia• India market has an infinite amount of resources &people• Wal-Marts strategy to move to India is good.