A Journey Through Wal-Mart: Wins And Setbacks

Walmart’s Incorporation: largest Company by revenue with over $500 Billion and also the largest private employer in the world with 2.3 million employees. It all started with Sam Walton buying a branch of Ben Franklin stores in 1945.

Walmart International
Argentina: It was one of the first countries outside North America Walmart invested in and as of 31^st October 2018 it has 91 stores working in Argentina.

Mexico: Walmart first store outside America opened in Mexico in 1991- a Sam’s club. In 1997 Walmart invested in Cifra and in 2000 name was changed to Walmart de Mexico. As of 2018 Walmart’s Mexico division the biggest outside United States consisted of 2,397 stores.

UK: Walmart UK subsidiary works under the name Asda and accounts for 42.7% of Walmart’s international division. It still remains a primarily grocery chain as compared to its counterpart in United States.

China: Walmart china began its operation in 1996 with opening a supercentre and a Sam’s club in Shenzhen. Walmart has various Joint ventures and majority-owned subsidiary in China. As of 31^st October 2018 it has 424 stores under different banners.

Setbacks
·Germany:Walmart was trying to enter Germany market since mid 1990s they first bought a supermarket chain Wertkauf in 1997 but at that time German market was an oligopoly and as main objective of all these supermarket chains were to provide products at the minimum cost. Walmart always enter with the same strategy of low pricing it wasn’t able to succeed in a market as competitive as Germany due to oligopoly in the market.

·Brazil: Walmart offers a one stop approach which does not bid well with Brazilian they are more accustomed to visiting multiple stores and negotiating to buy goods at the lowest possible price. Hence Walmart were able to do only little for creating another successful market for itself.

Wal-Mart’s Backdoor Entry in India

·Wal-Mart had earlier taken entry into the Indian Markets in the year 2007, in the field of ‘Wholesale cash and carry business’ by joining hands with Bharti Retail Enterprises, Foreign Direct Investment then in this sector was allowed at 51% for foreign investors.

·However later on in 2012, this policy was liberalised to allow 100% FDI for ‘Wholesale cash and carry business’ and 51% FDI for ‘Brick & Mortar’ or Multi–Brand Retail business with terms and conditions applicable, by the UPA II government then in power.

·Wal-Mart had signed two separate joint venture deals with Bharti Retail Enterprises, one of which was to manage the backend of Bharti Retails involving areas such as Logistics and Cold Chains, and Wal-Mart also operates wholesale stores in India under the brand name ‘Best Price Modern Wholesale’, first store being opened in Amritsar in 2009, as of 2018 Wal-Mart has 21 ‘Best Price Modern Wholesale’ active stores in India. In 2013 however Bharti and Wal-Mart separated to pursue their respective businesses independently.

·Finally Wal-Mart in 2018 had expressed its interest to acquire 77% of majority stake valued at $16 Billion in the Indian E-commerce company ‘Flipkart’, thereby making it the Wal-Mart’s biggest acquisition deal ever.