Globalization of Walmart Into the Indian Market
GLOBALIZATION OF WALMART
Walmart in the Indian Market
Introduction to International Business
November 11, 2012 BRYSON CONAWAY
ELIZABETH DENNIS
ALYSSA DUNGANS
WILL KERDOLFF
BRIAN GROVER
NADIA WONG
ABSTRACT
This research looks at the challenges and possible solutions of globalizing a large-scale retail company. It considers the foreign investment strategies of the retail titan Walmart, how it has succeeded in 27 countries and how it plans to succeed in India as well. First is an analysis of Walmart’s current global presence, followed by a critical look at its foreign investment failures in Germany and South Korea, the challenges Walmart faces by adapting its inventory and supply chain strategy to the Indian market, what it has learned from the research of current business practices in India, and what the future climate of India offers Walmart. The accomplishments of companies like Walmart mean a freer and more open market for developing nations like India and the globe, and directly and indirectly progresses consumers and firms worldwide toward a mutually beneficial global marketplace.
CAGE MODEL
Using the CAGE model, we identified problems company may face in the Indian market. There will be a cultural difference because the religious sectors that exist in India limits the types of products that can be sold and marketed effectively in Walmart stores. For example, the main religion in India is Hinduism which does not allow the consumption of beef. The second biggest religion is Muslims which does not allow the consumption of pork and alcohol. So, Walmart will need change what it puts on its shelves. Also, a big part of the India’s culture is consumers in India enjoy the utility of convenience and often have deep rooted connections with the local mom and pop stores. The mom and pop stores allow them to have credit and goods can be send to the consumers home regardless of the amount bought. Administrative distance wise, India does operate
Walmart in the Indian Market
Introduction to International Business
November 11, 2012 BRYSON CONAWAY
ELIZABETH DENNIS
ALYSSA DUNGANS
WILL KERDOLFF
BRIAN GROVER
NADIA WONG
ABSTRACT
This research looks at the challenges and possible solutions of globalizing a large-scale retail company. It considers the foreign investment strategies of the retail titan Walmart, how it has succeeded in 27 countries and how it plans to succeed in India as well. First is an analysis of Walmart’s current global presence, followed by a critical look at its foreign investment failures in Germany and South Korea, the challenges Walmart faces by adapting its inventory and supply chain strategy to the Indian market, what it has learned from the research of current business practices in India, and what the future climate of India offers Walmart. The accomplishments of companies like Walmart mean a freer and more open market for developing nations like India and the globe, and directly and indirectly progresses consumers and firms worldwide toward a mutually beneficial global marketplace.
CAGE MODEL
Using the CAGE model, we identified problems company may face in the Indian market. There will be a cultural difference because the religious sectors that exist in India limits the types of products that can be sold and marketed effectively in Walmart stores. For example, the main religion in India is Hinduism which does not allow the consumption of beef. The second biggest religion is Muslims which does not allow the consumption of pork and alcohol. So, Walmart will need change what it puts on its shelves. Also, a big part of the India’s culture is consumers in India enjoy the utility of convenience and often have deep rooted connections with the local mom and pop stores. The mom and pop stores allow them to have credit and goods can be send to the consumers home regardless of the amount bought. Administrative distance wise, India does operate