Tuesday, April 13, 2010
In India, Wal-Mart Gores to the Farm
Wal-Mart came to India two years ago to try to change India's business models by using its hyper-efficient practices to improve the flow of goods and increase productivity. Some think that Wal-Mart will threaten shopkeepers and lead them out of business. Wal-Mart is still not allowed to sell directly to consumers. However, farmers like working with the company and get paid 5 t0 7 percent more and do not have to pay to transport produce. Wal-Mart has been gaining trust from the locals by paying on time and giving farming advice about farming more efficiently. Wal-Mart wants to establish a bigger presence in emerging markets such as India's where modern stores make up a small percentage of the country's retail industry. New restrictions are being introduced by the government to limit Wal-Mart's earnings and prevent food prices from increasing. Although it will take time to make the experiment sustainable, the model hopefully will be taken to other areas and proved that it works.
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3 comments:
Walmart is currently ranked as #8 top corporate of the world. A few years ago, I believe, it was #1. It's influence and power is fluctuating and, as we can see, has dropped significantly this year. Therefore, I am not sure if it is a good thing or bad that people are reluctant to accept Walmart in India.
I believe that working with and the gaining the support of the local people are the reasons for Wal-Mart's success.
I believe that Wal-Mart in India could be a good thing. With India being highly populated, it really could move goods and services in a more efficient way. Also since it is populated, I do not see the shopkeepers hurting that much.
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