Wal-Mart and Bharti: Transforming Retail in India Harvard Case Solution & Analysis

Results Evaluation

The all the above discussed studies examine the importance of Indian retail industry and its applications. The empirical studies also analyze the Wal-Mart entry into the Indian market and its partnership with the Bharti telecom company. The Indian retail industry has greater transformed into a growing industry over the past several years. It has created opportunities for all the investors around the world to make a huge investment in the one of the largest retail market. But the large portion of the Indian retail market is captured by the unorganized companies that making it difficult for the foreign player to easily enter into the market.

Foreign firms in order to enter successfully into the Indian retail industry, they need to develop the relationship with the local firm. In addition to this, as they Indian government has restricted foreign players to directly come into the market so the only way to get entrance is the partnership with the local firm. The studies also determine the prominence of Wal-Mart and Bharti joint venture. The Wal-Mart suffered many risks and challenges after its entry into the Indian retail industry that created complications for the company in order to function properly and successfully.

Question 1

Why is it lucrative for Wal-Mart and Bharti to engage in a partnership to offer cash-and-carry services?

As in the Indian retail market, there are a barrier for the foreign direct investments due to the government regulation. These strict regulations made it impossible for the large foreign brand such as Wal-Mart to sell their product directly to the Indian customers. This joint venture of Wal-Mart and Bharti has provided them a way to enter the developing market of India.

This joint venture provides the Wal-Mart first mover advantage as compared to the other competing companies that have not recognized themselves in the country. In addition to this, it also provides the Wal-Mart an opportunity to increase the market shares in the Indian Retail market beacuse of the lack of the organized retailing in the Indian market. However, this would also increase the benefits of the company in the future when the Indian government would open the foreign direct investment in India.

On the other hand, there is also a shortcoming of being a first mover as they're in India there will be a lot of investment is required to progress the infrastructure of the supply. Secondly, those who are second mover and third mover in the Indian retail market may be able to learn from the errors of the first mover. The cash and carry business can help both the companies in the joint venture to understand the market of the retail make the necessary changes required in the business by their learning and the experience so that it would help them to get the largest market shares in the Indian retail market.

This joint venture would help the Walt Mart gain market access into India while Bharti will gain the experience. As the expertise and understanding of the Bharti in the Indian markets complemented the expertise of the Wal-Mart in the areas of logistics and supply chain management. Therefore, the Wal-Mart delivers the critical technical and back end support to Bharti Retail in the Indian retail market. The cash and carry business also provides the joint venture the access to a huge portion of the Indian retail market and work increasing in the efficiency and better development of the Indian retail market. This joint venture also increases the economic growth of the county as the Wal-Mart has detached the middle man support of the middle person and start directly dealing with the farmer that result in the improvement of the production and equality. In addition to this, joint venture plays an important part in the development of the farmers in India as well as also deliver them with the education in order to enhance the competence of the farmers. This joint venture also creates job opportunities for the local people in the India.

The partnership also business allows the local customers to get the products at the slogan everyday low price. This means that in the larger the quantity the products are available to the local at a comparatively low-priced rates. This joint venture was to change the retail market inadequacies and inefficiencies from the retail industry of India...........................

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