Walmart, the discount retail giant whose very name can strike fear in the hearts of small town retailers in the United States, has gone global. To reach customers around the world, the company utilizes a variety of retail formats, including discount stores, supercenters that feature a full line of groceries and general merchandise, and Sam’s Club, a warehouse operation offering goods in unbroken bulk packages. As Walmart extends its reach around the globe, observers are using words such as “assault” and “invasion” to describe what it’s like for a nation on which the company has fixed its sights. As the chief executive of one supplier noted, “Walmart is going to change the retailing landscape internationally exactly the same way it’s done domestically.”

Not surprisingly, the BRICS (Brazil, Russia, India, China, and South Africa) nations are integral to Walmart’s global expansion plans. In India, for example, strict government regulations once meant that the retail market was essentially closed to foreigners, but that situation is now changing. Walmart began its foray into that country by operating a liaison office in India from which it conducted market research and lobbied Indian policymakers. India’s annual retail market is worth $500 billion, and analysts expect the retail sector to grow at a rate of 7 percent over the next few years. Today, more than 90 percent of retail activity is generated by small shops, newspaper kiosks, and tea stalls (see Exhibit 12-15).

Questions
1. What are the biggest obstacles facing Walmart and other foreign retailers in India?
2. Summarize some of the elements in India’s political, economic, and cultural environments that can impact the market opportunity there.
3. Review Figure 12-4. Which quadrant of the matrix applies most directly to India? Why?
4. Going forward, to what degree will Walmart be required to adapt its business model in India?

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