Walmart-Bharti Retail Alliance in India: The Best Way Forward?



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Code :BSM0063

Year :
2009

Industry : Services

Region : India

Teaching Note:Available

Structured Assignment :Available

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Introduction:Indian retail sector has long been noted by the global retailers for its potential. But stringent regulations regarding Foreign Direct Investment (FDI) kept foreign retailers at a distance from Indian customers. However, recent change of focus from protectionism to economic growth and several regulatory developments allowed foreign companies to operate in the country without harming the native people's interests. Retailing is a delicate matter in India, for it provides highest employment for the Indian youth after agriculture, therefore, being highly dominated by unorganised players. To protect the interests of more than 10 million tiny retailers and to retain the economic balance, the Indian government has been barring the foreign retailers to open their chains in the country. This prompted global retailers to enter the subcontinent retail market assuming the wholesaler's garb to realise the potential of Indian cash and carry market. With German retailer - Metro already in the market, new entrants are on a spree for tie-ups with local giants. Though 100% Foreign Direct Investment (FDI) is allowed in cash and carry business, the newcomers seem to prefer an Indian partner for their business...

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