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Wal‐Mart in India: a success or failure?

Wal‐Mart in India: a success or failure? Purpose – The main purpose of this paper is to explore the challenges that Wal‐Mart may face as it expands into the Indian retail market. Wal‐Mart's failures in Germany and South Korea are analyzed to identify learnings that could be utilized in the Indian expansion. Design/methodology/approach – Dunning's eclectic theory as applied to international expansion is used to analyze Wal‐Mart's advantages and disadvantages in Germany and South Korea. The theory is then applied to India to understand the possible advantages and disadvantages for Wal‐Mart in entering the Indian retail market. Findings – The key findings of the study are that Wal‐Mart faces many ownership as well as locational disadvantages while expanding in India. These significant challenges need to be well‐understood and suitably addressed for success in the Indian market. Originality/value – This report makes a contribution towards understanding the challenges in entering an international market using a case study. The study helps analyze international experiences can be leveraged in future plans of international expansion. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Retail & Distribution Management Emerald Publishing

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References (6)

Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
0959-0552
DOI
10.1108/09590550810890948
Publisher site
See Article on Publisher Site

Abstract

Purpose – The main purpose of this paper is to explore the challenges that Wal‐Mart may face as it expands into the Indian retail market. Wal‐Mart's failures in Germany and South Korea are analyzed to identify learnings that could be utilized in the Indian expansion. Design/methodology/approach – Dunning's eclectic theory as applied to international expansion is used to analyze Wal‐Mart's advantages and disadvantages in Germany and South Korea. The theory is then applied to India to understand the possible advantages and disadvantages for Wal‐Mart in entering the Indian retail market. Findings – The key findings of the study are that Wal‐Mart faces many ownership as well as locational disadvantages while expanding in India. These significant challenges need to be well‐understood and suitably addressed for success in the Indian market. Originality/value – This report makes a contribution towards understanding the challenges in entering an international market using a case study. The study helps analyze international experiences can be leveraged in future plans of international expansion.

Journal

International Journal of Retail & Distribution ManagementEmerald Publishing

Published: Jul 18, 2008

Keywords: India; Retailing; Cross‐cultural studies; International business; Supermarkets

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