Wal-Mart and the Indian Retail Sector


Wal-Mart and the Indian Retail Sector
Case Code: BSTR257
Case Length: 15 Pages
Period: 2006
Pub Date: 2007
Teaching Note: Available
 Price: Rs.300
Organization: Wal-Mart Stores Inc., Bharti Enterprises
Industry: Retail
Countries: India
Themes: Mergers, Acquisitions, Strategic Alliances
Wal-Mart and the Indian Retail Sector
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

This case discusses Wal-Mart's proposed entry into India in partnership with a diversified Indian company Bharti Enterprises. Wal-Mart planned to operate under two formats - one a cash and carry wholesale outfit and another retail outlet franchised to Bharti. The case talks about the details of the tie-up between Wal-Mart and Bharti. It also talks about the retail scenario in India, and touches upon the operations of some of the major Indian and foreign companies operating in retail. The arguments for and against Wal-Mart's entry into India are also presented. It concludes with a question of whether or not the political dynamics in India would allow the entry of Wal-Mart.

Issues

The case is structured to achieve the following teaching objectives

  • To examine the issues in the possible entry of a major global retailer into one of the fastest growing retail sectors in the world
  • To study the details of the tie-up between the foreign retailer and its Indian partner
  • To examine the nature of the Indian retail sector with special reference to the different companies operating therein
  • To understand and appreciate the role and influence of political factor on economic decisions
  • To study the possible impact of the entry of the foreign retailer on the small local businessmen

Contents

Keywords

Wal-Mart Stores Inc., Bharti Enterprises, Joint Venture , Wholesale cash and carry, Franchise, Retail sector, Metro AG, Shoprite Holdings , Reliance Fresh, Future Group , Aditya Birla, Foreign Direct Investment

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