Opportunities And Challenges For Wal Mart In India Marketing Essay

Opportunities And Challenges For Wal Mart In India Marketing Essay India is seen as an emerging market for retail by global retailers. A.T. Kearneys Global Retail Development Index (GRDI) of 2009 ranks India as the most emerging destination for retail ahead of Russia and China. However, to protect its own retail industry, the Government of India has permitted only 51 % FDI for single brand retail. This has deterred many multi-brand retailers to enter the retail business in India. However, these retailers can enter the wholesale business where 100 % FDI is permitted. In November, 2006, Wal-Mart entered into a 50:50 joint venture with Bharti Enterprises to enter the wholesale sector as well as back end partner. Several apprehensions are being raised about the success of Wal-Mart in India which has largely been dominated by traditional retailers. The case analyses the opportunities and challenges that Wal-Mart will face in India and concludes with discussion on the future of Wal-Mart with respect to the advantages and disadvantages that the global reta iler will have in India. Introduction Since liberalization in 1991, the Indian market has a limited presence of global retailers such as McDonalds, Landmark, Dominos, Pizza Hut and few others. In January 2006, the Union Cabinet approved the policy on foreign direct investment (FDI) in retail to further simplify procedures for investing in India and to avoid multiple layers of approvals required in some activities. To facilitate easier inflow, FDI up to 100 % was allowed under the automatic route for cash and carry wholesale and export trading. However to protect the interests of Indian retailers, the FDI up to 51 % was permitted in single brand retail only. In 2006, Wal-Mart of US entered into a 50:50 joint venture with Indian retail major, Bharti Retail to foray into the wholesale business in India. The first Wal-Mart Bharti store opened in Amritsar in late 2009. In the same year, A.T. Kearneys Global Retail Development Index (GRDI), ranked India as the most emerging destination for retail ahead of Russia and China. Gl obal retailers like French based Carrefour and US based Starbucks were exploring opportunities in the Indian retail market while; Swedish retailer IKEA shelved its plans. A report by Northbridge Capital, UK based investment bank, revealed Retail market size in 2009 is estimated to be of $450 billion, growing at the rate of 30 per cent per annum. It is expected to grow to $720 billion by the end of 2011  [1]  .An analysis by AT Kearney revealed that organized retail in India accounted for only 6 % of the total retail market . Market analysts believe that India had traditionally been dominated by unorganized retail. They wonder whether global retailers can sustain in India considering the restrictions on FDI in retail and a strong competitive unorganized market. About Wal-Mart of US The retail chain Wal-Mart was established by Sam Walton in 1962 in the US. Over the years, the retail chain grew leaps and bounds to be the most successful retailer in the US. The retail chain operates in various formats such as discount stores, supercentres and warehouse clubs. Wal-Mart stores are huge stores with size varying from 42,000 sq. feet to more than 200,000 sq. feet. The business model of Wal-Mart is based on selling a wide variety of merchandize at always low prices often referred to as everyday low prices. Wal-Mart successfully expanded its operations to 14 countries which included Mexico, UK, China, Argentina, Brazil, Canada, Chile, India and Puerto Rico. By 2010, the chain operated 2,980 stores outside the US. Wal-Mart also ranks the topmost global retailer in the world with revenues of more than $ 400 billion from worldwide operations in 2009. About Bharti Enterprises of India Bharti Enterprises is an Indian business conglomerate established by Sunil Bharti Mittal. The group was founded in early 1990s. The group is involved in variety of businesses such as telecom, insurance, fresh foods, retail and realty. Outside India, the company has a presence in Bangladesh, Sri Lanka, Jersey, Guernsey and Seychelles. The group is in the process of establishing itself in countries like Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania,Uganda, and Zambia in the African sub-continent. The brand names Airtel and Beetel are household names in India. Its revenues for the year 2009 were estimated at $ 10 billion. Bharti Wal-Mart Tie Up After entering into discussions with Tesco of UK and Carrefour of France which did not materialize, Bharti Enterprises of India finally struck a deal with Wal-Mart of US in November 2006. According to the deal, Bharti would handle front end retail stores while Wal-Mart would act as a wholesale and back-end partner. However, Bharti would use the name Wal-Mart for its stores. The joint partnership planned to make investments in the retail sector to the tune of $100 millon which could go upto $1.46 billion. Wal-Mart was already procuring goods from various Indian companies to the tune of $1.5 billion. Industry observers say that the Wal-Mart would benefit from Bhartis experience in India while Bharti would benefit from Wal-Marts experience in overseas markets. However, after tremendous opposition from local people and political parties, the first store opened in Amritsar in late 2009. Consumer Shopping Behavior in India Consumers in the west are accustomed to shopping at organized formats while in India such formats are still evolving. Various researchers analyzing consumer shopping behavior in India made the following observations with respect to selection of stores by consumers: Traveling time : If the desired products are available in the neighborhood store, consumers would not visit the far away supermarket or hypermarket. Range of products offered : If the consumer shopping list is such that the required goods are not available in the neighborhood store, they would visit the supermarket or hypermarket. Services offered : The neighborhood stores offer personalized services such as credit facilities, free home delivery service, sms service and extended working hours. The organized retail formats offer good ambience, promotional offers and a good shopping experience. Socio Economic background : The socio-economic background of consumers determine their lifestyles and the kind of stores they would be comfortable to shop. Initially, the lower income group was hesitant to shop at organized retail formats as they felt that such stores were for the elite. However, over a period of time, the retailers adopted steps to change the perception of such consumers. Opportunities According to a report by McKinsey Company, the rise in disposable income of Indian consumers would be a major factor in contributing to the growth of retail consumption. The factors contributing to the growth of organized retailing in India include growth in working population, double income households, one stop destination for all needs, changing consumer lifestyles and easy availability of credit. Data by Investment Commission of India, 2007 revealed that significant retail opportunities existed in product categories like food and beverage, consumer durables and home improvement. It further forecasted that home improvement and consumer durables would grow at a compounded annual growth rate of 20 % in 10 years time. It further mentioned that India had a significant potential to emerge as a sourcing base for a wide variety of goods for international retailers. Leading international retailers including Tesco, GAP and JC Penney are already sourcing from India. A report prepared by Ernst and Young for India Brand Equity Foundation (IBEF) reveals that there are significant opportunities for organized retailers in various cities of India. This is because these cities have households with tremendous spending power and lower penetration of organized retail compared to metro cities such as Delhi, Mumbai and Bangalore. The online retail business progressed in India with growth of internet connections and e-payment service users. Retailers such as ebay.in, indiatimes.com and rediff.com were early entrants. Many small retailers also had their portals for online sale of merchandize. 70 % of Indias population is in the rural areas which offer tremendous opportunity for retailers. Key players in the rural retail market includ Indian Tobacco Companys Choupal Sagaar, DCM Shriram group owned Hariyali Kisan Bazaar and Indian Oil Corporations Kisan Seva Kendra among others. The main product categories marketed in rural areas include seeds, urea, FMCG goods and farm produce. Airport retailing is another emerging area for retailers. Raheja Groups Shoppers Stop partnered with Nuance Group, a leading Swiss global retailer to set up retail outlets at Bangalore and Hyderabad airports. Airport retailing offers opportunities in luggage, clothing and related accessories, food and beverage and souvenirs. The growing tourism industry has created significant demand for retailers dealing in artifacts. Challenges Logistics infrastructure in India has always been a cause of concern for global retailers. Lukas Ruecker, who oversaw emerging market business as vice president at Staples commented that the overall logistics is so much more difficult from a port in Chennai or a port in Shanghai to stores. Sumant Sinha, CEO, Aditya Birla Retail, is of the view that the logistics and supply chain infrastructure has to be built from scratch; its really about creating a new industry. Indias retail industry seems promising but is tempered by the fact that the country is grappling with severe infrastructure and policy issues, says the CII in the report it produced with A. T. Kearney. Cold chains (distribution chains for perishable items), warehousing and logistics infrastructure will create problems for global retailers if the Indian government does not focus on infrastructure. The report also points at inadequate quality control and the lack of a skilled workforce in India. Global retailers would have to customize their formats to suit Indian conditions. The Government of India fears that entry of global retail giants could put many retailers in the unorganized sector out of business. However, discussions at various retail forums have often proved that there is enough space for organized and unorganized retail in the country. Inspite of repeated discussion on the issue at various government levels to further liberalize the retail sector, no headway had been made. Indian retailers in organized and unorganized sector had geared themselves to face global competition. The organized retailers have focused on mall space acquisition, store expansion and diversification into various formats in addition to above and below the line promotional activities. The unorganized sector has focused on value added services. A report by PriceWaterhouseCoopers and Confederation of Indian Industry mentioned that small retailers in India had inherent advantages. They were located next to the consumer, making it convenient for top-up purchases. They knew the consumers well, some even by name. The report further mentioned that fixed costs for small retailers was very low thereby reducing their breakeven point to as low as 46 % of sales. They were also focusing on re-organizing their stores and stocking new products. The road ahead for Wal-Mart Industry observers wonder whether the failure of Wal-Mart in three major countries can be taken as a backdrop to predict its future in India. Consumer Behaviour experts are of the view that global retailers would have to understand shopping behavior in India and provide answers to why should Indians consistently shop at foreign retail outlets? Asitava Sen, retail industry specialist, PricewaterhouseCoopers., sharing his views in an article mentioned, Infrastructure is a significant challenge, especially while managing fresh produce, where producers are fragmented and there is multiple level of intermediation causing waste of up to 30% to 40% in the supply chain. Real estate is scarce and expensive in comparison to the quality being offered. An inadequate supply of skilled and trained people is another significant challenge.  [2]  

Red Badge of Courage Essay

â€Å"The central thrust of the Red Badge of Courage is directed towards the puncturing of Henry Fleming’s youthful range of illusions. † â€Å"Our inescapable conclusion concerning Red Badge of Courage is that Fleming is as deluded as the novel ends as he is when he first joins the Union Forces. † Which of the above assessments of the development of Henry Fleming’s character do you feel comes closest to the truth? In your answer you should Consider the arguments for and against accepting the question’s assertions; Bring to bear knowledge of external critical opinion on the issue; Look at contextual aspects of the novel in relation to the topic under consideration. ANSWER I feel that both these arguments show strong opinions and though both show a critical view of Henry Fleming, they are opposing views. The first statement seems to come closest to the truth in that the narrator uses irony to mock and deride Henry yet at the same time he feels a certain affinity with him also. Statement two is a conclusion but not inescapable as Henry, although still deluded, is not as deluded as he was at the time he joined the Union Army. In choosing statement one to be the truer of the two I have come to the conclusion that the narrator is being used as a figure who mocks Henry’s egotism and self deception on one hand then shows sympathy on the other. Stephen Crane uses the narrator to tell the story from a third party point of view and therefore can use this to get his points across. This use of third parties belies Crane’s own experiences of death and mutilation both in his private life with the death of his siblings and in the stories, pictures and photographs he has seen whilst researching the book. It is possible, Stephen Crane had read General Ulysses S Grant’s memoirs and also â€Å"Battles and Leaders of the Civil War†, which was a very popular and factual compendium of four books at the time and he no doubt saw Mathew B Brady’s photographs of the Civil War in these also. The novel is a naturalistic human- interest story but Crane uses the experiences of ordinary soldiers who fought during the Civil War to get the feel of how young men were forever changed by their experiences. Crane cleverly uses contrasts to show how Henry feels at differing times, using monster images to show how active an imagination Henry has, for example to describe a column of men, â€Å"two serpents crawling from the cavern of night†. Crane also uses nature and colour to show contrasts, with constant references to how the sky looks and the fact that â€Å"Mother Nature† still goes on regardless of anything that puny men can do to themselves, for example â€Å"a river, amber tinted in the shadow of its banks, purled at the army’s feet, and at night, when the stream had become of a sorrowful blackness, one could see across it the red, eye-like gleam of hostile campfires†¦ † Phrases like â€Å"A fair field holding life. †¦ It would die if its timid eyes were compelled to see blood† and â€Å"He conceived nature to be a woman with a deep aversion to tragedy† all show Henry’s wonderment at the fact that nature can carry on despite what happens, and at times the narrator sometimes unfairly mocks Henry for this. As the story develops and we see how Henry deals with the harsh realities of war the use of symbols becomes more developed, with Henry seeing the darker sides to war and death. This is when, I feel, the narrator becomes sympathetic to Henry as he tries to reconcile himself with the terrible things he has seen and done. The narrator give the most sympathy to Henry when he gets lost in the woods and finds a dead man, â€Å"horror-stricken by the sight of a thing† and again when he meets up with Jim Conklin and watches as he dies. Paradoxically he mocks when Henry’s thoughts turn to death and the hope that he â€Å"would be understood† in the afterlife. When Henry celebrates victory too soon and then runs away and when Henry leaves the tattered man to die despite staying with Jim whilst he died. After Henry returns to his own camp and Wilson tends his wound he gets very defensive if anyone mentions his absence or his wound, to the point of him thinking of blackmailing Wilson with the return of his letters and the narrator here shows how Henry is feeling superior yet benevolent, thinking himself the better for not being able to conjure up a scathing remark and how his self justification makes him pompous, devious and condescending. Henrys illusions are punctured again when after bravely fighting, he hears the veterans laughing at him, which only provokes him to further prove his own worth on the battlefield. His perception of the battle is now coloured by the â€Å"brotherhood of battle. † The second claim, is wrong in that Henry is not as deluded as he was, he has fought his demons and come out on the other side, not perfect, but able to realise that he has done dreadful things and he will have to live with them. Crane uses this discovery of self to great aplomb as he makes Henry question himself in the final chapter. Henry has a totally selfish and biased view of the world at the start, which slowly unravels as the story goes on. Crane uses the narrator to give us an insight into Henry’s mind by verbalising his thoughts and giving the narrators view of his actions. This in turn helps us to see the turmoil that Henry faces both within fighting the war and within himself. He turns out to despise his early blusterings and convinces himself that he has matured fully. Although this is not true, he has matured to some extent by being able to see the flaws in his character. Henry still romanticises himself and his surroundings but his personal battle between his consious fear and his desire to become a hero has been won. When Henry joined up he believed that he would become a great hero and that he would win great battles, he of course had never even seen a battle except those that went on in his head. He boasts and brags, to himself, about how brave he is going to be yet he turns and runs once the realities of the fighting become apparent. Through his experiences he slowly comes to terms with the fact that war is bloody and cruel And when his friend shows weakness he stores the information to use at a later date – something he later cannot do. To justify all that he has done he thinks † it had been necessary for him to swallow swords that he might have a better throat for grapes. Fate had, in truth been kind to him. † And to justify leaving the tattered man â€Å"he exclaimed that its importance in the aftertime would be great to him if it even succeeded in hindering the workings of his egotism. † Critics of Stephen Crane have both blasted this story as utter rubbish and Crane’s usage of the third party narrator as him trying to write a biography. General McClurg, when this book was published blasted it as blatant lies. His soldiers would never act like that in such a base manner. McClurg himself fought in the Civil War but being a general was not of course in the front lines of the battle. Many of the men who were, swore that they had fought with Stephen Crane even though he was not born until after the Civil War had ended. Such was the reality of the story to those people. The people who thought that this story was an analogy for Stephen Crane’s life based this assumption on these claims, so therefore, Stephen Crane must know of the battle mindset. Personally I think that Crane had heard so many stories of the war he could picture himself there and could imagine how a young boy would feel going through these experiences. Rather like modern stories penned by writers for television and films. I believe that Crane has shown himself to be a psychological realist in writing this piece and that each reader takes from it what they want in relation to their own experiences and knowledge. Perhaps this was a biographical piece and Crane used Henry to show his own delusions. On discussion of this piece, both within a classroom setting and using discussion groups on computer, I have read and heard many differing views of Henry. These views vary depending on the critic’s age. Many young people see him as egotistical, judgemental and self absorbed whilst mature students see him as just like most teenagers, too young to be able to see the big picture. Henry may be deluded but like most people once maturity sets in delusions become lessened as experience is gained. In conclusion I feel that statement 1 is true because the story develops many internal storylines one of which is the puncturing of Henry Fleming’s youthful range of illusions, of which he has many. Statement 2 on the other hand seems true because Henry is deluded to a certain extent. This is one definite statement with no real detail behind it, the author of it seems to be assuming that Henry can not or will not change.

The Breakdown Of The New Jim Crow Essay - 1474 Words

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Firstly, America has not come as far as it likes to think it has as a country socially. The argument of racism b eing a something left in the past and that it does not marinate through America today is a poorly told myth. The only difference between now and a century ago is that racism is more institutionalized and internalized than blatant. Secondly, in the different section within the chapters she examines the racism in the form that it is more commonly seen in today: systematic and institutional. Recognizing the connection between Alexander s theory and theShow MoreRelatedAfrican Americans in Prison and the Jim Crow Laws Essay915 Words   |  4 Pagesthe United States Population but make up over 40% of the current jail and prison population. A black man is five times more likely to be convicted of a crime than a white man in the United States. How far have we really come sinse the Jim Crow laws? 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The Problem With Cloud Storage Providers - 871 Words

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