Walmart in India: a Success or Failure

Topics: Retailing, Department store, Discount store Pages: 2 (597 words) Published: September 13, 2011
Walmart is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. It is the biggest private employer in the world with over 2 million employees. The company was founded by Sam Walton in 1962. It is headquartered in Bentonville, Arkansas. Walmart has 8,500 stores in 15 countries, under 55 different names. The company operates under its own name in the United States, including the 50 states and Puerto Rico. It operates in Mexico as Walmex, in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Walmart's investments outside North America have had mixed results: its operations in the United Kingdom, South America and China are highly successful, while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful. PURPOSE OF STUDY

In this paper, try to provide an opinion on one central problem: Wal-Mart in India: a success or failure. We believe that our evidence improves substantially on existing studies of these and related questions, most importantly by implementing an identification strategy that accounts for the endogeneity of store location and timing and how these may be correlated with future changes in earnings or employment. The main purpose of this paper is to explore the challenges that Wal-Mart may face as it expands into the Indian retail market. Wal-Mart's failures in Germany and South Korea are analyzed to identify lessons that could be utilized in the Indian expansion. Design/methodology/approach - Dunning's eclectic theory as applied to international expansion is used to analyze Wal-Mart's advantages and disadvantages in Germany and South Korea. The theory is then applied to India to understand the possible advantages and disadvantages for Wal-Mart in entering the Indian retail market.

Wal-Mart’s international expansion began as an...
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