Bharti's Way With Wal-Mart: Presented by

Bhartis way with Wal-Mart
Presented by:
- Neha - Pavithra - Richa - Rupali - Sebastian - Shobith - Srishti - Swati - Vishal -Harish
NIFT, HYDERABAD
INTRODUCTION History Joint venture SWOT Analysis
-Way to success
-Present scenario
-Future plans
INTRODUCTION
Bharti:
Founded in 1976, by Sunil Bharti Mittal. Vision: To build Indias finest conglomerate by 2020. Started as a small scale manufacturing unit for bicycle components. It has created world-class businesses in telecom(AIRTEL), financial services, retail, and foods. Wal-Mart is Bhartis partner for its cash & carry venture.
Source: http://www.bharti.com/wps/wcm/connect/BhartiPortal/Bharti/home/about_us/group_overview
INTRODUCTION
WALMART:
Vision: "We save people money so they can live better. Founded in 1962, by Sam walton. The corporate headquarters are located in Bentonville. The largest grocery retailer The biggest private employer in the world American public multinational corporation Wal-Mart, with about 9,000 stores in 15 countries, is not a threat to the Indian way of shopping.
Bharti-Walmart (Joint Venture)

In August 2007, Walmart announced an agreement with Bharti Enterprises to establish a joint venture. Bharti Walmart Private Limited, for wholesale cash-andcarry and back-end supply chain management operations in India. Bharthi retail would invest between US$ 2 and 2.5 billion by 2015. Bharthi retail would launch its retail outlets in multiple formats including hypermarkets, super markets and small convenience stores as reliance followed.
Bharti-Walmart (Joint Venture)

Bharti is uniquely placed in Indian retail sector because the Telecom experience has given in depth understanding of the Indian consumer and the skills to run a pan-India operation.
It also has ability to attract and grow talent Bhartis main focus are:
- best price - best experience - best quality
SWOT ANALYSIS
STRENGTH: Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA).
STRENGTH
The company has a core competence involving its use of information technology to support its international logistics system. For example: It can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement. A focused strategy is in place for human resource management and development. People are key to WalMart's business and it invests time and money in training people, and retaining a developing them.
Weakness
Walmart:
The supply chain models which Wall-Mart has developed is suited best for developed economy, it may not be efficient in county like India. Wall-Mart traditionally has huge span of control but such huge span of control may not work in Indian context. India is far more diverse country than any other country which Wall-Mart has operated so far Wall-Mart has not been very successful in internationalization; it failed in Germany and South Korea.
Weakness
Bharti:
Bharti is known for building business from start however joint venture with Wall-Mart will require lot of co-ordination and cross cultural issues. Bharti does not have experience in retail business like FMCG and related retail product. Bharti is a small company as compared to Wall-Mart and this could lead to improper balance of power and may be detrimental to the success of joint venture
THREATS
Being number one means that you are the target of competition, locally and globally. Being a global retailer means that you are exposed to political problems in the countries that you operate in. The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.
OPPORTUNITIES
To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region. The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India. New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centers, to local and mall-based sites. Opportunities exist for Wal-Mart to continue with its current strategy of large, super centers.
Wal-Marts way to success:

One of the key reason for Wal-Marts international success is the fact that in every location where it operates, its local- Raj Jain. To partner with existing local store owners through a franchise model To drive costs down through efficiency, higher volumes and disintermediation To offer more and fresher stock, offering a greater diversity of choice to consumers
Present scenario
Wal-Mart has announced a new plan to use its fan page on Facebook to promote localized information about its stores. The company hopes to target a new generation of customers Bharti Walmart has so far invested about $45 million (Rs. 200 crore) in India to open six Best Price Modern Wholesale storesfour in Punjab and one each in Kota, Rajasthan, and Bhopal in Madhya Pradesh.
Present scenario:
Bharti Walmart Private Limited and Bharti Retail Pvt Ltd. Launches Money Gram International's Money Transfer Service in Association with Thomas Cook India Ltd Bharti Retail opens easyday Hyper store in Mumbai This is Bharti Retails first store in West India. Bharti Walmart opens seventh wholesale store in chhattisgarh and eighth in Madhya Pradesh Currently Wal-mart has over 3500 locations, and almost 9.5 million Facebook fans.
Future plans:
Bharti Walmart Private Limited announced that it hopes to open up to 10 new wholesale stores in 2011 and another 8 to 10 new stores in 2012. Bharti Walmart to double stores in India, eyes top spot in two years Marked its entry in South India with the launch of its first Best Price Modern Wholesale cash-and-carry store in Vijayawada, Andhra Pradesh. The company will open stores in Karnataka and Andhra Pradesh, where it plans to open 3 cash-andcarry outlets
Future plans:
Wal-Mart may tie up with 'kirana stores' for bigger India play Its total investment in the country could reach about $195 million by the end of 2012. Wal-Mart links future of India JV to FDI norms: Wal-Mart would rethink its joint venture with Bharti Enterprise, depending on future government policy on allowing foreign investments in multi-brand retail sector-Raj Jain.
In way of establishing linkages with its 1,000 plus suppliers in the country, Wal-Mart India aims to establish farm linkages and work with the farmer to improve productivity
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Bhartis way with Wal-Mart

INTRODUCTION History Joint venture SWOT Analysis

Bharti-Walmart (Joint Venture)

Bharti-Walmart (Joint Venture)

Wal-Marts way to success:

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