Future group Vs Wal-mart: Kisme kitna hai Dum

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Once India was called sone ki chidiya(Golden bird) for its prosperity, intellectual, culture. so, we are going to make it happen. Here two questions arises first one is"Does wal-mart succeed in India" and second one is" Can Future Group compete with wal-mart". First of all I will give some sort of introduction about both the Companies.

Future Group- Future group is a India's largest retailers led by Kishore biyani. company has total 22 retailing formats ex- Big bazaar, Pantaloon, Brand factory, star, Depot, Blue sky, Future insurance, Future capital and many more............! Charming face of retail Kishore biyani know the pulse of Indian consumers, that's what the book called "It happened in India" written by Mr. Biyani get sold 100000 copywhich is highest number in any business book. Big bazaar has core competency in visual merchandising and product portfolio. they have presence in mostly retail businesses.
Wal-mart- American based retailer operating in various countries led by Sam walton. company has revenue of $404.16 billion(2009), which is total of India's total consumptions. wal-mart is master in supply chain management they have two types of supply chain. The very first one is Normal SCM and secong one is Cross docking SCM. They are pouring huge money on Information technology and supply chain management.

Challenges Wal-mart can face in Indian market-

1. The very first one is supply chain management( where they are strong) because India does not has very good Infrastructure in terms of road, electricity and others. India does not has sufficient cold distribution channel. That is the reason India's 40 percents of food is wasting.
2. Big store Vs small store- According to market research the perception of Indian cosumers is If store is big the price is high and if store is small price is low. so, how they can sustain in India it is very big challenges in terms of consumer behavior.
3. Store location- The third one is wal-mart business model says, they will not operate in centre of the city but near by the city. According to research India consumers are not willing to travel more then 6-7 km. for shopping. this is also very big challenges for wal-mart.
4. Real estate- Fourth one is wal-mart need too much space for store operations and parking. They can operate anywhere because they has money and willing to spend but If we will calculate profit according to per square feet of store space that can effect profit margin, here they can also face problems.

Future Group Vs Wal-mart
When Mr. Biyani was giving Interview with experts of Knowledge wharton, one question asked to him was"Do you have any plan for collaboration with Wal-mart?" the answer was No, Because they told we cannnot do partnership with wal-mart. The reason is they are very large so, we can do partership with someone who is similar like us in terms of revenues and operations. They also told wal-mart is unique in world. so, there is no question for partnership with us.

My analysis says its very tough to compete with each other because both has some sort of staretgy. We cannot say that if wal-mart is largest retailer in world so, they can win in any market or acquire any company. Mostly marketers think that wal-mart can win in this market because they has low price strategy. I would say it is not necessary that if you have low price you will win anywhere you go. If it is so, than why Wal-mart failed in Germany? Why wal-mart failed in south Korea?
Big bazaar is going to do partnership with world's second largest retailers(in terms of revenues) carrefour in next year 2010. so, this is very strong point for Big bazaar to compete with Wal-mart.


Reason for failure in German market-
Wal-mart entered this market in 1997 with large financial Investment company. In 1997 they acquired wertkauf retail and in 1998 they acquired Interspar stores. At that time market was in oligopoly situation with high competitions. The very first reason is companies which were present in that market also using low price stretegy. so, wal-mart could not win in that market. Second reason they have some sort of ethical issues.
I am confident that Big bazaar should not have any sort of anxious about wal-mart but keep doing things according to market situation you will win....................................

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