Market Entry Strategies Case Study

Wal-Mart in India: Can it be the Messiah of Indian Farmers?

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Abstract:
India was among the top producers of vegetables and fruits, but 30%-40% of the produce was wasted due to poor storage and handling facilities. The potential of agri-business in India attracted many domestic and multinational players. Wal-Mart, the American retailer with net sales of $344,992 million in 2007 planned to start its operations in India and formed a joint venture with Bharti Enterprises (Bharti). Bharti was one of the leading business groups in India with interests in telecom, agribusiness, insurance, and retail with market capitalisation of INR 1519 billion. Wal-Mart planned to invest in back end technology and replicate its global supply chain model in India. But analysts were skeptical about Wal-Mart's entry into India, as the company was known for its aggressive attitude towards its suppliers. Anti MNC activists were concerned about the social disruptions that the company would cause in the retail sector. The case details the controversies and challenges that Wal-Mart might face and facilitates discussion on whether Wal-Mart can establish itself in India.

Pedagogical Objectives:

• To understand the dynamics of agriculture produce and food retailing in emerging countries like India
• To discuss the possible factors of agrarian crisis in India
• To analyse the food supply chain in India
• To analyse the logistics and supply chain management strengths of Wal-Mart
• To analyse opportunities and challenges for a multi national retailer in an emerging economy like India.

Keywords : Agrarian Crisis; Supply Chain; Food Retailing India; Agribusiness Opportunities; Agriculture produce; Agriculture Marketing; Consumer Behaviour; Agriculture Credit; Wal-Mart; Wal-Mart in China; RFID; Rural Supply Chain in India; Indo-US Initiative; Market Entry Strategies Case Study; Food Processing in India; Consumer Spending in India

Contents : 
India’s Agricultural Produce Scenario
The Agriculture Supply chain in India
The present scenario in the Indian value chain
Wal-Mart’s Great Indian Adventure
Realty spaces in some cities
Bharti - Wal-Mart Retail Initiative: Opportunities and Challenges
RFID in Supply Chain Management