Abstract

Ever since Wal-Mart Stores Inc. made its entry into the Indian market, the penetration was sluggish due to several reasons such as the Indian FDI policy in retailing and allegations about the company indulging in illegal lobbying in India. In 2014, Wal-Mart switched its focus to penetrating the Indian ‘cash and carry’ market since making inroads into the country’s multi brand retailing had proved tough for the global retailer. Wal-Mart announced its expansion plans for the ‘cash and carry’ market in the year 2014, a year after its breakup with Bharti Enterprises. The retailer saw new governmental initiatives such as ‘Make in India’ as a huge opportunity. This case presents the expansion plans of Wal-Mart India, with the company hoping to leverage on the ‘Make in India’ initiative. Digitalization and development of smart cities were integral to the ‘Make in India’ initiative, and was expected to facilitate strengthening of infrastructure and logistics. However, there were also roadblocks in the form of a poor backend supply chain and lack of skilled labor in manufacturing, investment approval, etc. The case deals with the opportunities and challenges faced by Wal-Mart India as it aimed to expand its presence in the Indian ‘cash and carry’ market.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the concept of marketing strategies and plans
• Understand the issues involved in market expansion
• Understand the challenges involved in a company operating in an emerging market in the cash and carry format

Keywords

Market expansion, Retail, Cash and carry format, Regulations, Emerging markets, India, Marketing strategies, Business strategy, Ansoff’s matrix, Market penetration, Product development, Market development, Diversification