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Some experts felt that Wal-Mart may find it difficult
to achieve economies of scale in items such as personal consumer
products and may be able to achieve more success in fruits and
vegetables as there was still scope for disintermediation.
Some also
cited the fact that Wal-Mart's business model was not successful in all
foreign markets. For example, Wal-Mart had withdrawn its retail
operations in Germany and South Korea.
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But in the short term, the Bharti-Wal-Mart joint venture was confronted
with problems due to the opposition by the Left parties as they insisted
that the government should look into the matter to stop the "backdoor
entry" of Wal-Mart into India. These parties opposed the joint venture
stating that foreign direct investment in retail trade was not allowed
under the existing policy and that it would impact the vast number of
unorganized retailers, domestic manufacturers, and farmers in India.
ADDITIONAL READINGS AND REFERENCES
1] "Wal-Mart Enters India with Bharti Tie-up," The Hindu, November 28,
2006.
2] "Bharti Ties-up with Wal-Mart," The Financial Express, November
27,2006.
3] "Reliance Retail Eyes Pan-India Footprint in 5-yrs", Business
Standard, November 04, 2006.
4] "Deal Worth Billion Dollars, Says Mittal," http://www.ibnlive.com/news/deal-worth-billion-dollars-says-mittal/27152-7.html,
November 27, 2006.
5] "Bharti Retail Foray with Wal-Mart," http://in.biz.yahoo.com/061117/203/69hfc.html,
November 18, 2006.
6] "Wal-Mart Says 'Namaste India', with Bharti," The Economic Times,
November 28, 2006.
7] Randeep Ramesh, "Wal-Mart Moves into India," http://business.guardian.co.uk/story/0,,1958228,00.html#article_continue,
November 27, 2006.
8] "It's official: Bharti Picks Wal-Mart," The Financial Express,
November 28, 2006.
9] "Wal-Mart Deal Runs into a Big Red Wall," http://www.tribuneindia.com/2006/20061129/main7.htm,
November 28, 2006.
10] Rajeshwari Adappa Thakur, Kala Vijayraghavan, "Bharti may Pay 2-3%
for Wal-Mart Brand Name," The Economic Times, November 27, 2006.
11] Sindhu Bhattacharya, "You Can Shop at Wal-Mart in 2007," http://www.dnaindia.com/report.asp?NewsID=1066554,
November 27, 2006.
12] T. K. Arun, "It's Advantage Bharti in Deal with Wal-Mart," The
Economic Times, November 29, 2006.
13] "Pantaloon Ready for Wal-Mart Challenge," The Economic Times,
November 27, 2006.
14] "Left Parties Oppose Wal-Mart Entry," The Hindu, November 29, 2006.
15] "Bharti, Wal-Mart Deal: A Promising Partnership," The Hindu Business
Line, November 28, 2006.
16] "WalMart Enters India in Tie-up with Bharti", http://biz.thestar.com.my/news/story.asp?file=/2006/11/28/business/16152222&sec=business,
November 28, 2006.
CASE STUDIES ON RELATED TOPICS
Wal-Mart's Strategies in China
Wal-Mart's German Misadventure
The Good and Bad of Wal-Mart's Culture
Restructuring Pantaloon Retail: The 'Future Group' Initiative
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