...Executive Summary: This paper is an analysis and evaluation of Wal-Mart and the future venture into the retail sector of India. The challenges that Wal-Mart needs to resolve to become successful range from the cultural differences to problems with supply chain management in India. The analysis below identifies the challenges of many factors dealing with the Wal-Mart, Bharti and the Indian retail sector. These factors for Wal-Mart would deal with the ability to operate in India efficiently as they do in the US. In addition, Wal-Mart to be successful will have to sort out problems with the government, culture differences and the partnership with Bharti. These factors for Wal-Mart and Bharti will be presented in more specific detail through a SWOT analysis. The analysis will evaluate Wal-Mart as a company in relation to the future operation in the Indian market. Then the Bharti Company will be analyzed using a SWOT to pin point how the company will fit into the overall plan of Wal-Mart operating in India. The report will further evaluate the Indian retail sector through a competitive industry analysis using the Porter’s 5 forces model. This model will detail the threats to the market entry, supplier power, buyer power, availability of substitutes and competitive rivalry as they relate to the India retail sector. The report will then offer alternatives for the Wal-Mart company. These alternatives would include not progressing forward within India, chose a global market with less regulation...
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...MNC's Effect on Local Businesses in Retailing Sector (India) Contents Abstract 1 Introduction 2 Literature Review 2 Effect of MNC’s into Indian Retail Market 5 Advantages 5 Disadvantages 7 Hypothesis 8 Conceptual Model 8 Conclusion 10 References 10 Abstract Globalization paved the way for entrepreneurs to expand their wings beyond their respective counties. MNCs exploit the business opportunities in other countries based on the FDI policies in those countries. This has both advantages and disadvantages to the target country. The MNCs have their impact on the economy and people of countries in which they operate business. This paper focuses on the impact of MNCs on local businesses in retail sector in India. The report review existing literature which provides insights into FDI policies in India, the level of FDI allowed by Indian government with respect to single –brand and multi-brand foreign companies, the advantages, opportunities, risks, threats and disadvantages of allowing MNCs into retailing sector in India. Introduction Retailing is the business taking up by individuals or families in India. Generally mom and pop kind of businesses operate in retail sector. The retail sector has tremendous growth in India. Moreover retailing is a profitable business in India. Since India is the country with huge population, naturally it is the correct destination to foreign investors to get profits from the market. India has been traditionally depending...
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...Introduction Businesses are increasingly looking to expand into farther flung overseas markets like India, expecting to achieve rates of growth which are rarely achieved in saturated and depressed Western markets. However, it is important that businesses consider carefully the different types of expansion models available to them and are prepared to take a flexible approach to their international expansion strategy, taking account of local legal restrictions and fast changing consumer habits and expectations. As this briefing note explains, the choice of a corporate expansion model or an arm's length expansion model such as franchising can have a direct impact on a business's ability to engage in e-commerce within the local market. India is a case in point, where, despite the recent growth in online sales, the Indian Government has reaffirmed its policy on e-commerce in the retail sector, which restricts foreign brands from participating in local e-commerce if they hold shares in the Indian operating company. The Need for a Consistent Approach to Multi-Channel Retailing Historically, the majority of brands expanding internationally have been preoccupied with the "bricks and mortar" channel of distribution, based upon an assumption that the target local market is less technologically mature. This may have been a fair assumption as recently as three to five years ago, and it is still holds true in an increasingly limited number of countries. However, improvements in access...
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...Chaturvedi 12810020 Vikas Kumar Singhal 12810086 Contents 1. Introduction 3 2. Servqual 3 3. Retail Sector 4 3.1 Indian Retail Scene 4 4. Research Methodology 5 4.1 Research Design 5 4.2 Survey Questionnaire 5 4.3 Data Collection: 6 4.4 Findings of the Study 6 5. Relative importance of service quality dimensions for Shoppers Stop 6 5.1 Assessment of service quality gap of Shoppers Stop using SERVQUAL 7 5.2 Service quality gap and weighted service quality score for Shoppers Stop 7 5.3 Overall weighted SERVQUAL score for all the dimensions for Shoppers Stop 7 6. Analysis and Results 8 6.1 Primary Sources 8 6.2 Research Objectives 9 6.3 Hypothesis 9 6.4 Methodology 9 6.5 Pearson’s (r) Correlation 10 6.6 Linear Regression Analysis 11 7.Various suggestions for minimizing the gaps between customers' perceptions and expectations 12 8. Conclusion: 12 This paper attempts to study the service quality of Shoppers Stop in retail sector. Service quality is the degree and direction of discrepancy between consumers' perceptions and expectations in terms of different but relatively important dimensions of service quality. A 22-question (item) SERVQUAL scale measuring five basic dimensions i.e., Tangibles, Reliability, Responsiveness, Assurance and Empathy of service quality was used to understand the service quality of retail sector . Population for the study consisted of customers who have atleast visited one of the stores of Shoppers...
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...Case Study: Wal-Mart and Bharti Transforming Retail in India Executive Summary This paper is an analysis and evaluation of Wal-Mart and the future venture into the retail sector of India. The challenges that Wal-Mart needs to resolve to become successful range from the cultural differences to problems with supply chain management in India. The analysis below identifies the challenges of many factors dealing with the Wal-Mart, Bharti and the Indian retail sector. These factors for Wal-Mart would deal with the ability to operate in India efficiently as they do in the US. In addition, Wal-Mart to be successful will have to sort out problems with the government, culture differences and the partnership with Bharti. These factors for Wal-Mart and Bharti will be presented in more specific detail through a SWOT analysis. The analysis will evaluate Wal-Mart as a company in relation to the future operation in the Indian market. Then the Bharti Company will be analyzed using a SWOT to pin point how the company will fit into the overall plan of Wal-Mart operating in India. The report will further evaluate the Indian retail sector through a competitive industry analysis using the Porter’s 5 forces model. This model will detail the threats to the market entry, supplier power, buyer power, availability of substitutes and competitive rivalry as they relate to the India retail sector. The report will then offer alternatives for the Wal-Mart company. These alternatives would include not progressing...
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...INDIAN FOOD RETAIL SECTOR IN THE GLOBAL SCENARIO Vijay Anand1 & Vikram Nambiar2 (The figures indicated with reference to revenues of unlisted companies are based on press information and other sources of information that are not published and therefore, may not be accurate) GLOBAL RETAILING INDUSTRY The latter half of the 20th Century, in both Europe and North America, has seen the emergence of the supermarket as the dominant grocery retail form. The reasons why supermarkets have come to dominate food retailing are not hard to find. The search for convenience in food shopping and consumption, coupled to car ownership, led to the birth of the supermarket. As incomes rose and shoppers sought both convenience and new tastes and stimulation, supermarkets were able to expand the products offered. The invention of the bar code allowed a store to manage thousands of items and their prices and led to 'just-in-time' store replenishment and the ability to carry tens of thousands of individual items. Computer-operated depots and logistical systems integrated store replenishment with consumer demand in a single electronic system. The superstore was born. On the Global Retail Stage, little has remained the same over the last decade. One of the few similarities with today is that Wal-Mart was ranked the top retailer in the world then and it still holds that distinction. Other than Wal-Mart’s dominance, there’s little about today’s environment that looks like the mid-1990s. The global economy...
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...1.6 CRM Practices in Retail Sector India presents a huge opportunity to the world at age, to use as a hub. Standing on the threshold of a retail revolution and witnessing a fast changing retail landscape, India is all set to experience the phenomenon of global village. India is the “promised land” for global brands and Indian retailers A “Vibrant economy”. India tops in the list of emerging market for global retailer and India’s retail sector is expanding and modernizing rapidly in line with India’s economic growth. The future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations. Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities...
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...Industry 5 PESTEL Analysis 6 Government regulations 7 Business model 7 Barriers to entry 8 Lifestyle as a segment 8 The acquisition of Myntra 9 Conclusion: The road ahead 10 Which category to pursue? - A Game Theory Model 10 References: 12 Introduction: The E-commerce market Electronic commerce has emerged as an indispensable ingredient of India’s trade facilitation policy. Since 1991, The economic reforms explicitly took place in India around 1991 which resulted in the integration of the economy with the global economy. This combined with globalization and the advent of Internet has facilitated the growth of e-commerce market all over the world. India first came into interaction with the online E-Commerce via the IRCTC in 2002. The government of India experimented this online strategy to make it convenient for its public to book the train tickets. Since then the market was taken over by airlines and other travel companies which made the mode of ticket booking online. This was taken forward by Flipkart, Snapdeal, Amazon and other companies and today, they rule this industry. The E-commerce business transactions are categorized into business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), consumer-to-business (C2B) and the recently evolved business-to-business-to-consumer (B2B2C). E-Travel is the most popular form of E-Commerce, followed by E-Tail which essentially means selling of retail goods on the internet conducted by the B2C category. E-commerce...
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...family members and friends for their love and encouragement throughout our career. Last but not the least we express our thanks to our friends for their cooperation and support. Poonam puri T21 batch OVERVIEW VISION, MISSION & CORE VALUES GROUP VISION Big bazaar (Future Group) shall deliver Everything, Everywhere, Every time for every Indian consumer in the most profitable manner. GROUP MISSION Big bazaar...
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...A Study on Reliance Retail Supply chain Operations Operations Management-Assignment MBA- 1st Semester, Sec-‘B’ Submitted by George Vincent Table of Contents 2 BACKGROUND OF RETAIL 2 3 COMPANY PROFILE 5 3.1 RELIANCE RETAIL LIMITED 5 3.2 THE RELIANCE EMPIRE 5 3.3 BACKGROUND 10 4 A GLANCE AT EXISTING RELIANCE 12 5 “FARM TO FORK” 13 6 SUPPLY CHAIN MODELS 14 6.1 RELIANCE FRESH: (MODEL 1) 14 6.2 UPDATED POLICY 16 6.3 WHOLESALE TRADING (WST): (MODEL 2) 17 BACKGROUND OF RETAIL India is a land of retail democracy- hundreds of thousands of weekly haats and bazaars are located across the length and breadth of our country by people’s own self-organizational capacities. Our streets are bazaars – lively, vibrant, safe and the source of livelihood for millions. India has the highest shop density in the world, with 11 outlets per 1000 people. This does not include the village haats. Our retail democracy is characterized by 1. High levels of livelihoods in retail with nearly 40 million employed which accounts for 8% of the employment and 4% of the entire population. 2. High levels of self - organization. 3. Low capital input 4. High levels of decentralization Retail in India has started with the concept of weekly markets, where all the traders gather at one big place to sell their products every week. The people come to these weekly markets to buy the household items for the next one week. Village fairs and melas were also common...
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...scenario of India, the dynamic of retail have also undergone a sea change. Product, place, price, promotion, people and process play important role in retailing. On the other hand, physical evidence is one aspect that does not need any emphasis at all due to changing consumers’ mindset. As per the study, there are number of elements that characterize the retail industry in India and these are as follows: (i) It is a people-centric industry. (ii) A highly service-oriented sector. (iii) Demand drivers are more location specific. (iv) When there is a holiday or festival for the general public it is peak time for retailers. Goyal and Aggarwal (2009) opine that...
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...CHAPTER 1: INTRODUCTION AND RESEARCH METHODOLOGY Chapter 1: Introduction and research methodology 1.1 Introduction: The subject chosen for the project is consumer behaviour and a preference in the matter of retail stores. Sangam Direct is a non-store home delivery retail business under Wadhawan Holdings. It offers consumers the facility to place their orders through the Website or Phone and Sangam Direct will home deliver the products at the appointed date and time. This project will deal with understanding their existing consumers’ preferences and behaviour while food and grocery shopping which will help them to serve its customers in a better way by making the required changes in their way of working according to the responses recorded during the study. 1.2 Objectives of study: • To understand consumer profile. • To understand consumer preferences. • To know the frequency of purchase by the customers from Sangam Direct. • To obtain customer feedback for providing better service. • To provide recommendations to the company to provide greater satisfaction to existing customers to retain them. 1.3 Scope of Study: This study will provide us information on Sangam Direct’s existing customers’ profile with respect to their psychographics, behaviour and demographics. It will also provide Sangam Direct with information which can help them retain its customers by acting as per the customer feedback and suggestions which don’t cost much. It can also be used as reference...
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...Will Wal-Mart Succeed in India? Perhaps...But It Won't Be Easy Published: December 14, 2006 in India Knowledge@Wharton "He doesn't realize it, but I know everything about him,"says Indian retail magnate Kishore Biyani about a youngman sitting with him in a Mumbai hotel meeting room inearly December. "I see that he is wearing Colour Plustrousers. I know his waist size ... I know everything about him. We are a company of observers, andeverybody is trained to observe customers," says Biyani, who is CEO of the Future Group and managingdirector of its flagship Pantaloon retail chain that last year had revenues of Rs. 2,018 crore ($450million) and expects to become a $1 billion company by mid 2007. Biyani often spends Sundays hanging about unobtrusively and watching shoppers at his company's 200clothing stores in 32 Indian cities. The home-grown retailer's obsession for observing the average Indianconsumer also at public places like temples and movie halls underscores what could be Wal-Mart'sbiggest challenge as it sets up shop in India in partnership with Bharti, a leading telecom servicesprovider. "India is a very diverse country -we have 6,000 castes and sub-castes in 28 states, and everycommunity has its own tastes; every state has its own nuances," says Biyani. "To manage the diversityand the heterogeneity will be one of the biggest challenges for anybody who comes to this market." Enigmatic India and its challenges in transportation, warehousing and distribution infrastructure...
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...Company Introduction & main line of business: Walmart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world's second largest public corporation, according to the Fortune Global 500 list in 2013, the biggest private employer in the world with over two million employees, and is the largest retailer in the world. It runs a chain of large discount department stores and a chain of warehouse stores. Walmart helps people around the world save money and live better -- anytime and anywhere -- in retail stores, online and through their mobile devices. Each week, more than 245 million customers and members visit our 11,000 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs 2.2 million associates worldwide. Walmart has five major specialty categories which are as follows: ➢ Walmart Tire And Lube Express ➢ Walmart optical ➢ Walmart vacations ➢ Walmart pharmacy ➢ Walmart used and fixture auctions Innovative thinking, leadership through service, and above all, the commitment to saving people money have made Walmart the business they are today and are shaping the company for tomorrow. Global Presence: Wal-Mart Stores, Inc. (Walmart) operates retail stores in various formats globally. Wal-Mart has 8500 stores in 15 countries, with 55 different names. The...
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...TOPIC: Gap Analysis of Retail Supply Chain between India and Developed Nations INTRODUCTION IMPORTANCE OF SUPPLY CHAIN MANAGEMENT: ← Supply chain management is a topic of importance among the logistic managers and researchers because it is a Consider with a competitive edge. Supply chain management deals with the management of materials, information and financial flows in a net work consisting of suppliers, manufactures, distributes and customers. ← The supply chain management is logistics aspect of a value delivery chain. It comprises all of the parties that participate in the retail logistics process: Manufacturers, wholesalers, Third Party Specialists like Shippers, Order Fulfilment House etc. and the Retailer. Here, logistics is the total process of planning, implementing and coordinating the physical movement of merchandise from manufacturer to retailer to customer in the most timely, effective and cost efficient manner possible. ← Supply chain enables an organized retailer to move or store products more effectively, efficient logistics management not only prevents needless movement of goods, vehicles transferring products back and forth; but also frees up storage space for more productive use. SOME DEFENITIONS OF SUPPLY CHAIN MANAGEMENT: Supply chain management (SCM) is the management of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). Supply chain...
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