Bharti Walmart Private Limited

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Bharti Walmart Private Limited
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BHARTI WALMART PRIVATE LIMITED

INTRODUCTION
Saturation in western markets has shifted the attention of investors to India’s

emerging market. India has a growing middle class, an expanding economy
and a more brand-conscious consumer. It has a $450 billion retail
industry.Bharti Walmart Private Limited is a joint venture between Bharti
Enterprises, one of India's leading businessgroups with interests in telecom,
agri-business, insurance and retail, and Wal-Mart, the world’s leadingretailer,
renowned for its efficiency and expertise in logistics, supply chain
management and sourcing. joint venture between Bharti Enterprises and
Wal-Mart is for wholesale cash-and-carry and back-end supply chain
management operations in India to serve small retailers, manufacturers and
farmers. The joint venture has already set up a Distribution Centre in Punjab
named as Best Price modern wholesale which service the merchandise needs
of the Joint venture’s cash-and-carry stores as well as retail stores around
the area, including Bharti Retail’s wholly owned Easy Day stores. This
partnership was announced in 2007 and this Joint venture started in 2009
with first B2B wholesale cash-and-carry store in northern India. A typical
cash-and-carry store stands between 50,000 and 100,000 square feet and
sell a wide range of products from 6000 to 10000 and is providing a one stop
and shop experience.
Q 1. What has made Wal-Mart a World Leader in Supply Chain

Management?
Wal-mart became a leader in supply chain management because they took a

direct, regional approach. They cut out the middleman, and became their
own distributor. Also, a main leading factor to their success was their
implementation of the bar code system, which was later adapted to have
RFID microchips to eliminate physical inventory counting, making it much
more efficient. Not only could they tell what they were selling, how much,
now they could tell where it was in their regional distribution centers, making

them able to restock their inventory in 48 hours, much faster than any of
their competitors. These distribution centers were important because Wal-
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mart retail stores were strategically placed within a boundary of a delivery
zone of their distribution centers to cut transportation costs, and consumer
costs. This whole bar code system was later taken on by the whole US retail
sector, with Wal-mart’s efforts to thank for a systematic way of tracking
merchandise. Another key factor into their success was their intense
competitor research weekly. This meant the Wal-mart was able to beat
competitors by 4% to sometimes 10% by discounting 4 rolling key items for
approximately 75 days each. The increase in volume sales allowed for a
price drop and edge over their competitors, these promotions brought in
about $10 billion a year in revenue. The Wal-mart slogan once “Always the
lowest prices” was adapted to “Always low prices”. Wal-mart has such deep
roots in the retail sector that those who never shop there are affected by
their pricing strategies and the hold they have over manufactures to make
packaging work with barYou're
coding,Reading a Preview
and product offerings. Making Wal-mart
possible the most powerful, influential company in the world, according to
Charles Fishman, author Upload yourWal-Mart
of The documents to download.
Effect .
Upload
Q 2. Explain Wal-Mart’s use to Download
of innovative IT tools and IT-enabled
processes to benefit supply chain
Information technologies such as the OR bar code, electronic data interchange

(EDI), and radio frequency identification (RFID) have allowed Wal-Mart to
Become
maintain its position as leaderainScribd member
supply chaintomanagement.
read and
download
Wal-Mart first used the barcode fullwith
paired documents.
scanners for inventory tracking
in the 1970’s. This point of sale system was able to identify items sold, locate
Start Your 30 Day FREE Trial
the price for the item, create a receipt for the customer, and store the
transaction for later sales and inventory analysis. The barcode helped speed
up the checkout process but on a larger scale unlocked the door to
information management. Wal-Mart was now able to control its inventory and
avoid overstocking its selves with merchandise that was not selling well. This
helped to make the supply chain become more efficient and cost effective.
Soon after, the universal product code (UPC) was introduced and became the
standard for identifying and labeling products in the retail industry.
By the early 1990’s, Electronic data interchange (EDI) had become a
valuable technological tool that helped to strengthen the relationship
between Wal-Mart and its suppliers. Through Wal-mart’s company-developed
application Retail Link, suppliers were now able to access Wal-Mart’s
database and view up-to-date, store-by-store, sales and inventory

information for their products. Suppliers could then coordinate with Wal-Mart
to forecast, plan, produce, and ship products as needed. With the use of its
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privately owned satellite communication system, Wal-Mart could was now
able to coordinate its supply chain activities between all store locations and
distribution centers.
Wal-Mart went to a whole new level when it required its suppliers to equip its
products with microchips that could be used for radio-frequency
identification (RFID). These microchips were an enhanced form of the
barcode, storing more information. Similar to what is used on the highway
for toll collection, the technology requires the RFID tags to be in close
proximity to the RFID reader. Once scanned, the item or goods could be
tracked throughout the whole supply chain. In-store, managers could
determine how many products it had and where they could be located.
Wal-Mart’s use of innovative IT tools and processes has set the standard for
supply chain management. Wal-Mart’s ability to exploit information and use
You're
it to better the supply chain Reading
process a Preview
has enabled it to keep inventories low,
increase turnover, and create cost savings, which in turn can be passed on to
the consumers. Upload your documents to download.
Upload
Q 3. Analyze the Indian retail to Download
industry through Porter’s Five Forces
Indian retail market (Organized and unorganized) is estimated by the India

Retail Report to be around Rs. 12,00,000 OR crore($270 billion) with annual
growth rate is 5.7 percent.
Become a Scribd
Currently unorganized/traditional member
retailing to read and 95% of the industry
is contributing
with over 15 million small anddownload
medium fulloutlets
documents.
(mom-and-pop corner stores
also called ‘kirana’ stores).
Start Your 30 Day FREE Trial
Organized formats are only in the initial stages of adoption in the country.
However with the change of tastes and preferences of the consumers, the
industry is getting more popular these days and getting organized as well.
With growing market demand, the organized retail industry is expected to
grow at a pace of 25-30% annually (CII-AT Kearney Retail Study). Retailing in
India is growing rapidly with consumer spending increasing by
unprecedented rates. Because of these factors global players like Wal-Mart,
Tesco, and Carrefour are interested in this sector.
Porter’s five force analysis:

1. Threat of new entrants: (low to medium) The threat of new entrants

into the business can be determined by considering the factors which can
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favor and restrict the entry.
For Indian retail industries The threat of new entrants is low to medium due
to the following limiting factors:
• Government policies for FDI: The Indian the Government has allowed
only 51 per cent FDI in the sector and this restrictions on the FDI is
creating ripples among the international players like Tesco and many
otherretail giants are struggling to enter Indian markets.
However,enter the Indian retail marketindirectly via strategic licensing
agreement, franchisee agreement and cash and carrywholesale
trading (since 100 per cent FDI is allowed in wholesale trading). This
restriction is potentially stopping the new entrants.
• Economies of scale: Increased urbanization has led to higher customer
density areas thus enabling retailers to use lesser number of stores to
You're Reading a Preview
target the same number of customers. Aggregation of demand that
occurs due to urbanization helps a retailer in reaping the economies of
Upload your documents to download.
scale.
• Real estate cost: This becomes a potential barrier as cost for the
Upload to Download
installation of a new infrastructure is very high due to high cost of real
state in India.
•
OR
Logistics and Supply Chain Management: The cost of transportation in
India is high due tothe poor road system as well as the lack of latest
Become a Scribd
technology for maintaining the member
quality ofto the
readproducts
and like
unavailability of trucks with refrigerator
download which leads to spoilage of
full documents.
around 60% the food. Even the supply chain management is not that
Start logistics.
efficient due to the poor Your 30 Day FREE
This Trial responsible for not
is greatly
attracting new companies.
• Geographical and cultural diversity: India has a very vastly diversified
geography as well as culture, religions and languages which becomes
a barrier for a new entrant as it requires much more investment in the
training for the staff as well as they need to invest more locally
2. Threat of (moderate
substitutes: to low)The threat to
substitute occurs due to the following reasons:
• if the there is a decline for the demand of a product
• Low brand loyalty
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10/14/22, 11:18 PM Bharti Walmart Private Limited | PDF | Walmart | Radio Frequency Identification

Search Read free for 30 days

Uploaded by Hetal Patel on Jul 25, 2011

Download now  Search document 

Search Read free for 30 days

Saturation in western markets has shifted the attention of investors to India’s

Q 1. What has made Wal-Mart a World Leader in Supply Chain

Wal-mart became a leader in supply chain management because they took a

Search Read free for 30 days

Information technologies such as the OR bar code, electronic data interchange

Search Read free for 30 days

Indian retail market (Organized and unorganized) is estimated by the India

Porter’s five force analysis:

Search Read free for 30 days

1. Threat of new entrants: (low to medium) The threat of new entrants

Search Read free for 30 days

You're reading a preview 

Unlock full access (pages 6-10) by

Search Read free for 30 days

Reward Your Curiosity

Anytime. Anywhere. Any device.

Share this document

You might also like

Rise of ISIS: A Threat We Can't Ignore

Name of the Merged Companies

Principles: Life and Work

Walmart Radio Frequency Identification Barcode Retail

The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to