Walmart Analysis of Indian Market Walmart Public Corporation

Walmart Analysis of Indian Market

Walmart…. • Public Corporation of America • Run a Chain of Stores Globally • Net Income at the end of fiscal year 2006 was approximately $ 12. 19 billion • Cash equivalents in the year 2007 are $ 7. 4 Billion

India: Demographic/ Physical Market…. • 1. 10 billion population and ranks second in the world • Literacy rate is 70% • gender ratio is 955 females per 1000 males • Growth rate of population is 1. 38%

Continued…. • Abundant energy resources • Infrastructure spending • High investment in retailing • Powerful consumer market

India: Political Environment…. • Quasi-federal-form of government • Country is preferred for FDI • Less requirement in licensing • No restrictions on expansion of business

India: Economic Environment…. Factor United States India GDP (PPP) $13. 543 trillion $4 5. 21 trillion Currency Dollar Rupee Inflation 4. 1% 3. 5% Unemployment 4. 9% 7. 8% Per Capita Income $43, 444 $4543

India: Social/Culture Environment…. • Adopting new traditions and customs with their own Values • More than 21 languages are spoken • It has divers cultural values • Educated workforce

India: Trade regulation…. • Easy access of trade • No strict regulations for trade • Economic Growth is more than 8% • Easy mode of entry into the market of India

India: Legal Consideration for Investment…. • Low tax rate: 40% foreign companies • Increases in the employment ultimately increases productivity • Easy access of legal activities

Recommendations for Wall-Mart…. Market Weight United Factors States Demographic. 20 2 Total Weight. 40 India Total Weight 5 1 Political . 15 3 . 45 Economic . 15 4 . 60 Cultural . 30 2 . 60 5 1. 5 Trade regulations Total . 20 5 1 4 . 80 1 3. 05 4. 35

References…. • Boulton, W. R. , (1984). Business policy: the art of strategic management. (pp. 18). New York: Macmillan • Kotler, P. (2002) Marketing Management (11 th Revised Edition). New Delhi: prentice Hall of India. • Ramaswamy, V. S. & Namakumari, S. (2005) Marketing Management. Delhi: Mc. Millan India. Ltd.

Continued…. • Sharan, V. (2003). International Business (1 st Edition). New Delhi: Pearson Education. • Wal-Mart Updates Growth Plans. (2008) Retrieved April 26, 2008, from http: //www. walmartfacts. com/articles/5432. aspx