walmart.. one of the biggest retailer companies in the world is now planning to come to india.tying up with bharti will they b succesful in providing the best of backend operations in india also which they are famous for.
will walmart be succesful in india.... this is one of the biggest questions whose ans. every company, every retailer, every student...in all every person is looking for.
there are already indian companies in operation in this sector like subhiksha, reliance fresh,birla's, biyani's are already there n they r tryin to come with new technology and new ideas n trying to tie up with other major companies in order to capturs as much market as they could. they are trying to develop new distribution channels to cut down costs and manage inventory more effeciently...
but with walmart working with concepts like RFID,ERP n many more....wldn't this thing give them an edge over the other's..
in my view... yes to some extent it would prove to be a point in there favour... but looking at the cost implications involved in it, road conditions in india where you cant expect walmart's big trucks to move like they do in US, customer base in india, involvment of government in a way or two..it would be a bid challenge for walmart to come in and establish themselves succesfully as they have done themselves in US market.
so it will remain as a mystery until and nless walmart start operatin in India.
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India is a very diverse country - we have 6,000 castes and sub-castes in 28 states, and every community has its own tastes; every state has its own nuances. To manage the diversity and the heterogeneity will be one of the biggest challenges for anybody who comes to this market.
One big challenge Wal-Mart will face in India has to do with how it is perceived by consumers. In the U.S., when you think of a big warehouse store, you think of lower prices, and small, boutique stores have higher prices, in India, the perception is exactly the opposite - the bigger store has higher prices; smaller shops can offer lower prices because their overheads are lower. How will Wal-Mart's positioning of lower prices carry forward in a mindset where customer perceptions of big versus small are so different?
So we can say that succeeding in India a very tough task for Walmart.
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