Run-Down the c-factor

the Competition

By – Aakash deep
09mba052
Wal-Mart strategy against competitors
•Always low price
•Wal-mart is master of manipulating perceptions.
 Walmart makes consumers think that their prices are
lower than the competitors prices.
Once consumers are convinced that Wal Mart’s prices
are lower, they become stuck in a self reinforcing loop
that keep them shopping at WalMart.
•Walmart’s buying practices injure it’s vendors
Each year walmart set the price it wil pay to supplier for
each item, and also set the quantities that supplier must
sell to walmart.
If the supplier can not meet walmarts’ price and volume demand
it is dropped.
 they also decrease the margin to the supplier with the time and
volume of quantities.

•Walmart appears to be only busines in the world that is able to

treat the supplier this way

•Walmart actully serves only one stakeholder group: shareholders.

•The only way to recapture market from walmart is to interfere

with the misperception.
 Competitors of Wal-Mart in India
Indian retail giants foreign retail giants
Big Bazaar Wal-Mart
(Retail chain of future group) Tesco
RPG Enterprises Correfour
Reliance
Spencer’s
When comes to
India
Translation of english punchline in hindi.
 What if WAL-MART comes to India
Approximately 8 million people would lose their jobs if
walmart comes to India.

unleashing the Pipeline of cheap chinese goods.

Unfair competition due to the deep pockets of walmart.

Will adopt unfair pricing to crush Indian retail giants .

 Why Walmart should come to India

• Increase in foreign investments that will have an

positive impact on developments.

• India is an underserved market and that there is plenty

of room for foreign companies as well as for big Indian
players and small shops.
Reason of protesting against WalMart
India's two Communist parties have taken up the twin
issues of job losses and small shopkeepers' losing their
livelihoods

Reason of favouring walmart

Introduction of foreign retail giants through incremental
model that creates new jobs and does not replace or
displace employment in small neighborhood shops.
Political plans for limiting the Wal-Mart in India

Wal-Mart to India's six biggest cities and allow them to

open only one store a year in each city, with not less than
100,000 square feet, so they can't be located in inner-city
neighborhoods, where real estate is expensive. At least
half the retail space would have to be allocated to food to
stimulate the development of upstream agriculture.
 Wal-Mart as buyer market for india or a clever
entry to Indian market.

Wal-Mart already buys Indian goods worth more than

$1.5 billion a year, ranging from bath towels to jewelry,
and has asked for permission to open a liaison office