strategy walmart

venturing into INDIA

Reid Drossos

Shalin Lakhani

Gaurav Kohli

Van Tran

Ramkumar Ganesan

SWOT Analysis

STRENGHTS

Lowest prices (EDLP)

Supply Chain

WEAKNESS

Monopolistic image

Lack of experience in Indian retail

OPPORTUNITIES

EXPAND – Booming retail sector

Consumer base of 1.2 billion

THREATS

Competition from local stores and similar companies.

Political and social backlash

Threat of Substitutes•Unorganized small scale vendors •Online retail stores

Threat of New Entrants•International retail giants considering entry (Tesco, Carrefour)Barriers to Entry•Supply chain complexities and inefficient infrastructure

Bargaining power of suppliers•Big brands possess higher bargaining power.

Competitive Rivalry•95% unorganized retail sector•Local players like Reliance, TATA, Future Group etc.

Bargaining power of Customers•Easy availability of products•Price consciousness

High

HighModerate

Moderate

High

Porter’s 5 Forces

BLUE OCEAN – The Opportunity

Tier 2 and Tier 3 cities • Unorganized retail sector• Burgeoning middle class • Less exposure to supermarket experience.• Lack of efficient supply chains and

inventory management systems.

•Empowering Franchisees.•Negotiating partnerships with store owners for profit sharing.

Partnering with local store owners

Modern Supply Chain

Excellent Inventory Management

Store Owners involve in understanding consumer needs

Sales and shop-keeping retained by Store Owners

Ideal Locations

Potential Partnership Store

ManufacturersCostly Middlemen Retailers Customers

Existing Supply chain

Reduced margin

Inefficient supply chain

Walmart supply chain

Bharti Walmart franchise stores

Increased profit margins for the Store Owners

High Bargaining power - Reduced costs

High quality goods Lowest costs

Bharti-Walmart Supply chain

Thank You !!!!