Case Study Of Walmart Stores And Bharti In India

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Walmart is Multinational Corporation operating in a chain of hypermarkets, grocery stores and discount department stores in 28 countries world-wide. It is the largest company in the world in terms of revenue – approximately US$480 billion according to the Fortune Global 500 list in 2016 – as well as the largest private employer in the world. Walmart is leading in terms of sustainability, philanthropy and employment opportunity globally.
Vision Statement- The company traces its success to the ideals of its founder, Sam Walton. These ideals are emphasized in Walmart’s vision statement:
“To be the best retailer in the hearts and minds of consumers and employees.”
Mission Statement- The company’s strategic decisions are also a direct
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On October 9, 2013, Wal-Mart Stores and Bharti Enterprises announced the end of their six-year old joint venture in India.

Why Wal-Mart entered India?
The retail market in the U.S. was saturated and did not have much room for growth. Having touched all parts of home country, it was an inevitable choice to move towards global expansion. Wal-Mart decided to benefit from its everyday low pricing strategy in the other parts of the world. The Indian Retail Industry was growing greatly at the time and there was a huge potential customer base available to bank upon.

Walmart’s entry strategy in the Indian Retail Market
On November 2006, Wal-Mart stores Inc. and Bharti Enterprises Ltd. Entered into a Joint Venture to explore business opportunities in the Indian Retail Industry. The joint venture is for cash and carry stores (which sell products to other retailers in bulk). Bharti decided to manage the front end, involving opening of retail outlets and Wal-Mart took care of the back end operations. The first store opened in Amritsar in 2009.

Walten Brothers opened first Walmart in Arkansas.
Wal-Mart expands outside of Arkansas, opening stores in Sikekton, Mo., and Claremore,
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The company changes its legal name from Wal-Mart Stores, Inc. to Walmart Inc.

Prahalad and Doz Model

Wal-Mart is one of the largest Transnational Corporations in the world. This type of strategy is one which maximizes responsiveness and integration. There is a mutual development of the knowledge and innovation of the which is dispersed globally. Since the 1990’s, Wal-Mart has expanded its company into the global market by expanding its operations all over the world.


This analysis would be a good instrument in providing the overview of the external environment prevailing in India during the time Wal-Mart entered the market: -
The political environment of India is significantly dependent on the policies of the government. The Indian Retail Sector does not entertain FDI. In the case of Wal-Mart Bharti joint venture, the Government did not allow foreign investment in multi-brand retail. 51 percent FDI was allowed in single-brand retail venture and 100 percent in wholesale brand.

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