Case Study

on Wal-Mart

By:-
Chetan
Avinash.A
Tanishka.D
Abhay.J
Jasmeeth
Reasons for Wal-Mart’s enter into Indian
Retail Trade
 Retailing in India is emerging as one of the largest
industries, with a total market size of $450 billion.
 A tremendous market existence of middle class.
 Consumer spending grows rapidly - 60% of Indian
population is in age group of 20-30 & is more inclined
towards modern shopping.
 India's position as the world's second-largest producer of
fruits and vegetables- so, refrigerated distribution of
fruits and vegetables can add value to customers by
means of low price and wide range of merchandise.
Problems to be faced by Wal-Mart in
India
 The Indian government requires retailers to source 30 % from
small suppliers which is difficult for Wal-Mart to comply
with.
 Logistics infrastructure in India has always been a cause of
concern for global retailers.
 Strikes by small traders or businessman, labour union,
company’s own customers and employees.
Effect’s of Wal-Mart on Indian Retailers
 Loss of Business

Many of the small scale department stores in India are the major
contributors to the Indian economy, the entry of Wall- Mart into Indian
market may lead to loose the business to many of the middle and small
scale people.
 Low price products
Wall- Mart in order to capture the Indian market is trying to introduce
low price strategy on their products which in turn affect the other local
businesses. Local traders later also should implement this pricing
strategy which may affect their profit margin.
 Creates excess competition
Due to the entry of Wall –Mart into the Indian market the
competition may increase between local retailing businesses
like Pantaloon, Reliance etc. we can see a tough competition
between these business units in future .
 Local traders
Local traders from the major of the cities were opposed the
entry of retail giant Wal-Mart especially in Delhi because it
will affect the local traders/business man and also for small
retail shops to shut down there business.
Strategy recommend to Indian Retailers
 Target the higher end

Offering higher quality items. By increasing the quality of

their products, small businesses will be able to attract
customers who are willing to pay for better quality.
 Offer specialty items

Small businesses have the opportunity to carry specialty items.

Carrying items gives shoppers motivation to choose your
store.
 Listen to your customers
Small business owners, have the same opportunity to greet their
customers each time they walk in the door and the opportunity to
make changes based on what they are hearing. Ask them
(customers) about your product mix, and  Ask them what is
missing, and cater to them.
 Provide extra services
In addition to selling a product, small businesses have the
opportunity to offer their customers additional services, like
repairs and installation.
 Practice top-notch customer service
In a small business, every customer can be treated as a VIP. And
customers, are much more loyal to businesses that make them feel
special.  Things are as simple as remembering customers' names can
give small businesses that extra advantage. Because all like to be
recognized.
 Change products and vendors
Small businesses can much more easily mix up their product base to
consistently meet the changing demands of their customers. If one
product isn’t selling, small businesses can look for a new vendor or
simply change the product.