DR. SATNAM UBEJA BHOOMI KHABIYA JAYVARDHAN SINGH PANWAR PRATEEK SOMANI SALONI SHARMA YASH KUMAR JAIN SUMMARY Evaluation of wall-mart and Bharti enterprises joint venture in India The case talks about challenges faced by wall-mart and Bharti enterprises like cultural differences and poor supply chain infrastructure in India. Competition faced by the companies. The situation of the retail industry in the country. Indian political and business environment. Steps taken by the companies. INTRODUCTION TO INDIAN RETAIL SECTOR Indian market mainly consist of Kiranas and Mandis. Mandis are the types of market that are set up by government for the sale of agriculture product where as kirana stores are individually operated. Indian market sees an emergence of modern large scale sector such as super market, chain store, departmental store etc. The change in the retailing culture has changed the buying behaviour of customer as well as the business. CHALLENGES OF WALL-MART IN INDIA Habituality of Indian customer. Competition with big Indian giants. Overall cultural difference. Geographical differences. Unorganised retailing. Maintaining effective supply chain management in poor infrastructure. Making the joint venture work. SWOT ANALYSES OF WALL- MART • Advance inventory management system • Tracking of overall sales STRENGTHS • Powerful retail branding • Powerful strategy for human resource management and development by devoting time and money on their staff
• Weakness in operational platform
WEAKNESSES • Span of control in india • Lack of experience in india. • Poor CSR. SWOT ANALYSES OF WALL- MART • 300-400 billion valued market which provides great chance of success • Great financial backing allows them OPPORTUNITIES to have more alliances • Growing urbanization and increasing spending power
• Target of competition THREATS • Political environment • Manufacturing differences ALTERNATIVES
1)Change the strategic orientation and
re-positioning.
2) Improve corporate image and
social responsibility.
3)Wall-mart should partner with
another Indian retailer. SOLUTION Provided the scenario the joint venture was facing difficulties on the sustainability of various factor wall-mart has planned for the joint venture never the less it stopped working to attend the objectives of opening adequate amount of shop in order to acquire the market place share and improve the margin determination in localization, government policies. Measure are needed to achieve earning growth positioning, improve the corporate image to attend the long term benefit. RECOMMENDATIONS It’s recommended to maintain the Joint venture, but changes are needed in the strategic orientation and the positioning. For the Joint venture and mostly for Wall- Mart, building convenient stores and therefore establishing a larger presence in the Indian market are crucial to the sustainability and profitability. CONCLUSION The Indian market has great potential in many sectors and big companies like, Wall-mart can have big opportunities to use these opportunities and succeed. But with this being said the market conditions in India are also very tough and companies have to completely prepared to make sure that they succeed and run their business effectively THANK YOU