Professional Documents
Culture Documents
ACKNOWLEDGEMENT
This work is done as a project, as a part of course titled "Competitor." We are really thankful to Dr. Mayank Dhaundiyal and Prof. Vivek Vajpayee, for their valuable guidance and assistance, without which the accomplishment of this project would have never been possible. We also thank him for giving this opportunity to ANALAYISE CASE- WAL-MART AND BHARTI. This project is a success with your support and guidance.
THANKING YOU
COMPANY PROFILE
WAL-MART
The enterprise that belongs to Sam Walton established in 1962, is one the major Retail Giant in US that operates majority in North America. On Oct 31, 1969, it was incorporated and by 1972, it obtained listing in NYSE. It is multinational retail corporation that runs chain of large discount departments stores and warehouse stores. It is trying to make its mark all over the world through its expansion programs via orgainsed retail supply chain management and its pricing strategies. And therefore its enterprises procedure encompasses 14 countries with 2980 stores outside America. The most well liked detail about Wal-Mart is that- its sells its merchandise Always at low prices. Wal-Mart operates in many countries, namely Wal-Mex in Mexico Asda in Uk Seiyu in Japan
However in Germany and South Korea they have to sell their stores as they are going through heavy losses. As it decided to enter in Indian market the situation was critical because weak Indian economy, lack of retail market, infrastructure and supply chain management.
BHARTI ENTERPRISES
It was founded in 1976 by Sunil Bharti MIttal. It is an Indian business conglomerate headquartered in New Delhi. It operates in 20 countries across and Asia and Africa. It has grown over years by acquiring and building partnership. Bharti has managed to build partnership very well. As Bharti is one of the pioneers of Indian telecom revolution over the period of time it has gained good knowledge of Indian consumers. However retail is new business for Bharti, catching previous record of Bharti, Wal-Mart decided to have joint venture so to enter in Indian market.
ISSUES
1. How did Wal-Mart plan to tackle the challenges that lay ahead? 2. Would this marriage of titans really transform Indian retail?
SOLUTION
1) Wal-Mart decided to use two different formats for their stores; a franchised retail company and a wholesale cash-and-carry joint venture. With the proposed joint venture, Wal-Mart and Bharti had found arrangement that allow the US retail giant to enter the Indian retail market Wal-Mart is well known for its well-organised structure and for Indian market which was unorganized at that time Wal-Mart will give a good shopping experience. Wal-Marts strength is its supply chain management system, now to gain suppliers support it should develop a strong supply chain network. Wal-Mart should continue its expanding programs to cover the important part of the growing Indian Market. Prominence of middleman in the retail and wholesale industries had been a key characteristic of Indias retail market. Wal-Mart should cutout the middleman and connects producers directly with the retailer. Linking directly who reducing the inefficiency. Wal-Mart must keep diversity as important point of consideration in India, as it is failed in some countries due to lack in adjustments in culture of respective countries.
2) Wal-Mart has opportunity to introduce its experience in supply chain management and logistics to India. Using its IT technology in supply chain management it can enhanced the Indias supply chain management along with Indian retail market. Introduction of cold chain logistics. Joint venture was seen as a great opportunity for foreign retailers to get a foothold in a market that was expected to double in size to US$ 637 billion by 2015. Indian buyers power is moderate. With the consumers power the unorganised sectors are transforming into organised ones. Retail commerce provides the value-added goods and services which are favoured by the customers.