Walmart: Submitted By-Vandana Rana (2K18/MBA/083) Sukriti Kanwar (2K18/MBA/085)
Walmart: Submitted By-Vandana Rana (2K18/MBA/083) Sukriti Kanwar (2K18/MBA/085)
Submitted
by-
Vandana Rana(2K18/MBA/083)
Sukriti
Kanwar(2K18/MBA/085)
Walmart
The JV of Walmart India and Bharti Retail didn’t work and was called off in
October, 2013 (“Bharti and Walmart”, 2013). Bharti divested their stake in
the JV and Walmart India took complete control of the company.
Walmart, which has put mom-and-pop stores out of business in the US, is a
supplier to kirana stores in India supplying the local store-holders instead
of competing with them.
Walmart also opened its first fulfilment centre (FC) in Mumbai, an
improvement on its cash-and-carry store model, which will hit markets
much faster and focus exclusively on FMCG products and staples.
Walmart is looking for ways to operate more efficiently looking for ways
to operate more efficiently.
Nearly 90% of all consumer goods are sold through small kirana stores.
The distribution channel is highly fragmented as there are about 10
million kirana stores in India.
Flipkart, which has resisted Amazon’s onslaught for the last five years,
has accumulated losses of around $3.6 billion. The challenge of piling up
losses is not something that can be solved anytime soon, regardless of
Walmart’s deep pockets, because the price war with Amazon will
continue.