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Published by:
Amity Research Centers (2018)
22 pages
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Walmart, Arkansas based global retailer, opened its first store in 1962 and continued to serve its customers with its unique value proposition of 'Every Day Low Pricing' (EDLP). After establishing a firm and strong base in the US, the retail trailblazer moved to lucrative market overseas. However, the global expansion ambitions of this brick and mortar icon did not move along the expected lines. No overseas market was a superlative success. In Germany, particularly, the behemoth had to retrench. But then, expanding globally was a 'growth compulsion'. Walmart was indulging in every trick of the trade, while keeping its low cost proposition intact to script a success story in the overseas markets. It struck strategic alliances and deals with local players, acquired strategically relevant companies and lobbied hard with the authorities. In India, which was projected to be a land of robust opportunities, the company had to wrestle with two challenges; the stringent laws which prohibited FDI in multibrand retail and the dominating presence of marketplace player, Amazon. Under the given circumstances, Walmart considered it strategic to strike a deal with the local e-Commerce player Flipkart. This served twin purpose. Walmart would place a firm foot in the Indian retail market (without violating any law), gain access to Flipkart's robust customer base and combat competition from Amazon. But the moot questions were: Would Walmart's purpose be served? Would the heavy investment pay off for the company? Would Indian retail market turn out to be an exception in otherwise dismal overseas report card of Walmart?


Walmart; Flipkart; Global; Expansion; Deal; Amazon; Every Day Low Pricing; EDLP; India; Retail
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