Epitome of Walmart- Flipkart Acquisition: A change in Retail Management Strategy- Tutors India

EPITOME OF WALMARTFLIPKART ACQUISITION: A CHANGE IN RETAIL MANAGEMENT STRATEGY

An Academic presentation by Dr. Nancy Agens, Head, Technical Operations, Tutors India Group  www.tutorsindia.com Email: info@tutorsindia.com

Today's Discussion OUTLINE

In Brief Introduction Walmart’s Strategy in Indian e-commerce Epitome of Walmart’s Acquisition Conclusion

In Brief

In India, the way of doing business has been changed by e-commerce.

The e-commerce market in Indian is estimated to rise up to $200 billion by 2026 due to the increase in the penetration of smartphone, wealth of the customer and the networks led by e-commerce giants like the Flipkart, Amazon etc. Thus, retailers from other foreign countries are waiting to enter into India to take hold of a significant share of the consumer market in India.

Introduction In 2018, Walmart declared buying Flipkart which is one of the biggest Indian ecommerce platforms, for a controlling stake of 77% by paying $16 billion.

In 2017, Flipkart suffered losses of up to 68%, which made its evaluation fell down to $11.6 billion.

Walmart played an intelligent strategic move by acquiring Flipkart despite its loss in the international market.

Walmart- Flipkart acquisition is widely considered as the largest acquisition and the world's largest takeover of an e-commerce firm.

Contd..

Figure 1: Strategy of Walmart to Reinforce its Firm Globally

Walmart’s Strategy in Indian e-commerce This acquisition deal has provided Walmart to have a strong foundation in the Indian e-commerce market since the possibility of building an e-commerce platform like Flipkart would have been a great challenge for Walmart.

Walmart acquires a jump in the world's leading prospective market for development and hence Walmart can enhance its international teams, yields, analytics, scale and IT expertise in the global market.

The purchase of Flipkart provides Walmart with a huge head start opportunity in India.

Walmart is on a worldwide highprofile acquirement spree, particularly for improving its online sales division.

Epitome of Walmart’s Acquisition Walmart-Flipkart makes a huge way for a new change in retail management.

The integration of the offline and online retail must transpire.

This sets an example in the strategies of the entrepreneurial ecosystem, for the retail world, business models based on the internet beyond e-commerce and e-commerce governance.

The major change in the retail industry was created by rapid development in communication and information technologies (ICT).

The direction of the retail is developing in an Omni-channel business model.

Conclusion Owing to the acquisition of Flipkart by Walmart within the short-term perspective, the Indian online buyers will not face any drastic change in their shopping experience.

With the private labels of Walmart, the choices of the users must expand differentiating the products.

There will be more attraction between the Indian customers who have not used online shopping yet due to the expansion of Flipkart.

Though the penetration of the e-commerce is still lesser in India, still the persistence of the promotions and the discounts will be continued in this market.

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