Walmart Harvard Case

1260 Words6 Pages
Walmart case Situation Analysis: The formation of corporate partnerships is nothing new, especially in the global marketplace. When getting into a partnership, it’s always drawn by some objective. In the case of Bharti and Wal-Mart, it was due to the idea of the emerging Indian retail marketplace and wondering why they haven’t done it earlier. Wal-Mart had been expanding internationally for some time, but had never been able to break into India’s market due to strict government regulations which limited foreign direct investment “FDI” to 51% (Bose, p. 3). By developing a “50-50 venture for back-end supply chain management and wholesale cash-and-carry operations,” (Bose, p. 9) Wal-Mart was able to use Bharti’s domestic corporate headquarters as a gateway to this quickly growing marketplace. On the other hand, Wal-Mart was allowed to franchise itself “while sharing expertise and technology with Bharti to support the retail stores that would be built by Bharti Retail Ltd, its wholly owned subsidiary.” (Bose, p. 9). Foreign multi-brand retailers were also allowed entry into the India retail market by sharing information and technology with Indian domestic partners (Bose, 2012). Another reason for the partnership as stated by Sunil B. Mittal, chief executive of Bharti in The Economic Times article Wal-Mart Says, ‘Namaste India’, with Bharti, “Bharti, with its deep knowledge of India’s fast-growing consumer market and Wal-Mart, with its extensive global retail experience, share the same commitment to building relationships with producers.” (2006) And finally, what made Bharti an even better partner for Wal-Mart was Bharti’s prior experience in dealing with foreign direct investment and international businesses. In fact, “Over the years, Bharti had attracted a total of US$1.2 billion in foreign equity – more than any other Indian telecom firm.” (Bose,

More about Walmart Harvard Case

Open Document