Walmart is the largest retailer in the world. It operates retail stores in various retailing formats in all 50 states of the United States. The company's mass merchandising operations serve its customers effectively. India is also planning to open doors for Walmart, but the decision is very crucial as they want more than 50% ownership in supermarkets.

(i) What factors should be kept in mind by Walmart before entering the Indian market?

(ii) How does Walmart create value?

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Solution

Following factors should be kept in mind:

(a) State of Market: Walmart should analyse the market whether the market is favourable or not.

(b) Risk Involved: With every new investment proposal, there is some degree of risk involved which should be analysed before investing.

(c) Return on Investment (RoI): This is the most important factor which helps in analysing whether the investment will result in income or not.

(ii) Walmart creates value for customers and society by providing tremendous employment opportunities and excellent customer service.

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