Professional Documents
Culture Documents
Once India was called sone ki chidiya(Golden bird) for its prosperity, intellectual, culture. so, we are going to make it happen. Here two questions arises first one is"Does wal-mart succeed in India" and second one is" Can Future Group compete with walmart". First of all I will give some sort of introduction about both the Companies.
Future Group- Future group is a India's largest retailers led by Kishore biyani.
company has total 22 retailing formats ex- Big bazaar, Pantaloon, Brand factory, star, Depot, Blue sky, Future insurance, Future capital and many more............! Charming face of retail Kishore biyani know the pulse of Indian consumers, that's what the book called "It happened in India" written by Mr. Biyani get sold 100000 copywhich is highest number in any business book. Big bazaar has core competency in visual merchandising and product portfolio. they have presence in mostly retail businesses.
Challenges Wal-mart can face in Indian market1. The very first one is supply chain management( where they are strong) because India does not has very good Infrastructure in terms of road, electricity and others. India does not has sufficient cold distribution channel. That is the reason India's 40 percents of food is wasting. 2. Big store Vs small store- According to market research the perception of Indian cosumers is If store is big the price is high and if store is small price is low. so, how they can sustain in India it is very big challenges in terms of consumer behavior. 3. Store location- The third one is wal-mart business model says, they will not operate in centre of the city but near by the city. According to research India consumers are not willing to travel more then 6-7 km. for shopping. this is also very big challenges for walmart. 4. Real estate- Fourth one is wal-mart need too much space for store operations and parking. They can operate anywhere because they has money and willing to spend but If
we will calculate profit according to per square feet of store space that can effect profit margin, here they can also face problems.
Reason for failure in German marketWal-mart entered this market in 1997 with large financial Investment company. In 1997 they acquired wertkauf retail and in 1998 they acquired Interspar stores. At that time market was in oligopoly situation with high competitions. The very first reason is companies which were present in that market also using low price stretegy. so, wal-mart could not win in that market. Second reason they have some sort of ethical issues. I am confident that Big bazaar should not have any sort of anxious about wal-mart but keep doing things according to market situation you will win....................................