1. Why Walmart engaged in globalisation strategies and risks associated with such moves Reasons • Facing a major slowdown in growth in the United States and sales started stabilizing. • Walmart needed high levels of growth to continue to survive. • Walmart thought High levels of growth possible only through globalization. • Domestic markets moving towards saturation • Domestic market (US) accounts for a small percentage of world’s population.
The group has facilities to adapt its products to the trends and the tastes of customers. Answering the fluctuating demand is one of the biggest advantages of the company and we have seen that each new product has been successful. Because Danone’s products are accessible, easy to buy, and improve the quality of life. Danone has rapidly expanded internationally by using existing commercial relationships to introduce its products in certain international markets and therefore accelerate its own geographic expansion as well as the international development of its brands. B.
Because of that, a 5 month long strike had happened. And also, another factors which slows Wal-mart down is the company’s growing legal and labour compliance issue. Wal-mart has been facing many law suit and majority are from it’s employees. With these ongoing issues, Wal-mart should have done their parts to solve internally and should try to think of alternative solution to solve internal issue and also external issue like entering new market. It is believed that these issues will affect the decision of their sales as customers might think that badly about Wal-mart.
This made manufacturers responsible for managing their stocks in Walmart’s warehouses and stores. This resulted in, Walmart being able to expect almost a 100% order fulfilment on merchandise. Walmart was so aggressive on these supply chain techniques that it drove down its distribution costs to a mere 1.7% of its cost of sales which was better than its competitors like Kmart (3.5%) and Sears (5%). (LU, 2014) Establishing Strategic Vendor Partnerships Walmart focused on strategic sourcing to find products at the best and lowest price from suppliers who are have the capacity to manage the demand requirements. Walmart then establishes strategic partnerships with these vendors by offering them commitments of long term high volume purchase in exchange to the lowest possible prices streamlining the unwanted links in between.
Also, in case of Satyam, there was no possibility of a strategic alliance because the company was put on sale by the Government of India. However, going forward, Tech Mahindra should look for growth through strategic alliances because given the nature of IT industry, the transfer of soft resources (human resources, customers, skills, solutions etc) is more valuable to any company and an acquisition is likely to hinder the exchange of soft resources. Also, the IT Industry is subject to cyclical fluctuations in the macro-economy and hence, acquisitions substantially increase the risk of loss during recessionary times. However, nonetheless it is important to realize there is not always a fixed formula and it is the context which will decide what strategy a firm should
II. THEORETICAL BACKGROUND A) Choice of Entry Modes There are several choices of entry modes for firms trying to globalize, however it should be kept in mind that there is no one method suitable for all the firms under a specific set of conditions. Although there are various entry modes which firms should consider before entering foreign a market? We have a global market and with this we get global competition. This means that more and more firms have decided to go in to new markets and this demands the right type of action in order to be successful (porter 2004:287).
98 crore in 110 year with a growth rate of 407%. If the trend of increase in population will remain the same, the day is not far away when our all resources like wheat, sugar, vegetables, etc. will not be sufficient to distribute among the people. It is the time to control the population of India and to adopt the strict measures with the consent of Political as well as spiritual leaders Tables 1 to III show the statistics which are used for analysis. Population and its Growth, India: 1901-2011(TABLE-1) Population Decadal growth Change in decadal growth Average annual exponential growth rate (percent) Progressive growth rate over 1901 (percent) Absolute Percent Absolute Percent 1901 23,83,96,327 - - - - - 1911 25,20,93,390 1,36,97,063 5.75 - - 0.56 5.75 1921 25,13,21,213 -7,22,177 (0.31) -14469240 -6.05 -0.03 5.42 1931 27,89,77,238 2,76,56,025 11.00 28428202 11.31 1.04 17.02 1941 31,86,60,580 3,96,83,342 14.22 12027317 3.22 1.33 33.67 19511 36,10,88,090 4,24,27,510 13.31 2744168 -0.91 1.25 51.47 19611 43,92,34,771 7,81 ,46,681 21.64 35719171 8.33 1.96 84.25 1971 54,81,59,652 10,89,24,881 24.806 30778200 3.16 2.20
Introduction In 2006, Walmart started talks with India-based Bharti Enterprises to enter the Indian business sector as India's strict business laws did not allow foreign companies to enter the Indian retail sector. They set up a joint venture called Bharti Walmart Private Limited in 2007, with the goal of doing wholesale business, through Best Price Modern Wholesale stores. It was chosen that while Walmart would work towards back-end cash and carry supply chain for the wholesale operations of Bharti Walmart; it would likewise give ability including innovation, inventory network, logistics and administration backing to the retail locations, Easyday, which will be run an entirely possessed backup of Bharti Enterprises named Bharti Retail
Pantaloon, Tata Group, RPG Group, Reliance Group and A V Birla group are some of the major Indian retailers. The study by Mishra (2008) expose that mall space, demography, rising young population, availability of brands, rising retail finance, changing lifestyle, modern retail formats and foreign direct investment are the strengths and opportunities for modern retail model. On the other hand, real estate cost, improperly developed mall, lack of skilled personnel, underdeveloped supply chain and taxation hurdles are the weaknesses and threats for modern retail formats. the study by Ali and Kapoor (2010) indicate that a higher income and educational level of consumers influences their decisions on product and market attributes while gender and age seems to