Indian Institute of Management, Kozhikode
Wall-Mart And Bharti: Transforming Retail in India 3
Indian Retail Market
India has become epicenter of economic activities in today’s global world. Indian retail isthe most promising sector in the world and it has caught the attention of players across globe.India’s retail market is valued around $590 billion dollars and is expect to become $637 billionby the year 2015. The immense growth opportunities coupled with lack of organized retailmakes it attractive further more.While India presents a large market opportunity given the number and increasingpurchasing power of consumers, there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Indian retail market is highly complex interms of a geographic spread and consumer preferences which varies by each region requiringstrong need for localization across the length and breadth of India.In order to capture Indian market Wall-Mart entered in 50:50 venture with Bharti for cash-and-carry retail business. Wal-Mart and Bharti need to tackle huge challenges to be successful.It ranges from huge cultural diversity, lack of infrastructure, political resistance, socialresistance, lack of use of technology, to supply chain management. The analysis that follows inthe document identifies various challenges faced by the joint venture along with answers toquestions asked in the assignment.
Question 1: Wal-Mart’s efficiency in supply chain management hasmade it a leader in the retail field. Is it possible for Wal-Mart tomaintain supply chain as a competitive advantage?
The Supply chain management forms the heart of Wal-Mart’s business. Its reliability andefficiency is unmatched in the word of retail. Wal-Mart always seeks to improve and explorepossible ways to give customers superb quality service without an additional expense. Allaspect of supply chain from the purchasing to transporting and then finally to selling are well-coordinated and systematic which ensures the success of the entire supply chain, which in turnbenefits and satisfies Wal-Mart’s customers.