International Marketing Assignment :Wal-Mar

International Marketing
3/31/2018
Wal-Mart India

International Marketing 1
Contents
Introduction......................................................................................................................................4
Overview of the company............................................................................................................4
External environment analysis.........................................................................................................5
PESTLE Analysis........................................................................................................................5
Political factors........................................................................................................................5
Economic factors.....................................................................................................................5
Social factors...........................................................................................................................5
Technological factors...............................................................................................................6
Legal factors............................................................................................................................6
Environmental factors..............................................................................................................6
Porter’s five forces.......................................................................................................................7
Bargaining power of suppliers- HIGH....................................................................................7
Bargaining power of customers- HIGH...................................................................................7
The threat of substitutes of products or services- HIGH.........................................................7
The threat of New entrants- Medium.......................................................................................8
Industry rivalry- High..............................................................................................................8
Internal environment Analysis.........................................................................................................8
Porter’s value chain.....................................................................................................................8
Primary activities.....................................................................................................................9

International Marketing 2
Support activities.....................................................................................................................9
The reason behind the Wal-Mart India's Failure...........................................................................10
Lesson learned...........................................................................................................................11
Mode of entry................................................................................................................................11
Initial mode of entry..................................................................................................................11
An alternative mode of entry.....................................................................................................12
Marketing mix...............................................................................................................................12
Product.......................................................................................................................................12
Price...........................................................................................................................................13
Place...........................................................................................................................................13
Promotion..................................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Appendix........................................................................................................................................19
Appendix 1 External environment analysis...............................................................................19
Appendix 1.1 Pestle analysis.................................................................................................19
Appendix 1.2 Porter’s five forces..........................................................................................21
Appendix 2 Internal environment Analysis...............................................................................22
Appendix 2.1 Porter’s value chain.........................................................................................22
Appendix 3 Reason behind the Wal-Mart India’s Failure.........................................................25

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Appendix 4 Mode of entry.........................................................................................................25
Appendix 5 Marketing Mix.......................................................................................................26

International Marketing 4
Introduction
The objective of the report is to suggest suitable strategic and operational international marketing
program for the Wal-Mart India. The report includes the thorough analysis of the market which
is essential for the company before proceeding with the future strategies of the company. The
analysis includes both external and internal study along with the competitive factors analysis that
might create the impact on the working of the company in the Indian market. Moreover, the
report also includes the details related to the obstacles faced by the Wal-Mart India and the
lessons that the company learned from these obstacles. In the end, the report includes the details
related to the mode of entry for the company in Indian Market. Along with this, it includes the
proposed marketing strategy.
Overview of the company
Wal-Mart India owns and operates around 21 Best Price modern wholesale stores in India. These
stores offer approximately 5,000 items in Cash & Carry format. The stores of best price ensure
that they are offering the unmatched convenience, choice, quality along with hygiene. The
company came into existence in India in the year 2009 in Punjab. Currently, the company is
present in approx. 9 states out of 28 Indian States (Wal-Mart India, 2018).

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External environment analysis
It is a process to determine all the external and internal elements that can create the effect on the
organization performance (Chernev, 2018). Below given is the macro and competitive forces
analysis of the Wal-Mart India.
PESTLE Analysis
This analysis helps the company in understanding the external factor that influences the business.
Wal-Mart India also faced some issues because of these factors (Grant, 2016). Please refer
Appendix 1.1 for the further analysis of the Wal-Mart India.
Political factors: - The political factors include the influence of the government on the
particular industry. India is one of the largest democracies in the world and it runs on a federal
form of the government along with this the government is unstable (Pratap, 2017). Indian
government’s regulations say that all the foreign wholesalers should be able to source at 30% of
products from small and medium Indian businesses. Similarly, they want Wal-Mart to source
30% of products (Lutz, 2013).
Economic factors: - The economic factors include GDP, inflation rate, unemployment and
many other aspects. GDP of the country is improving year by year after the liberalization of the
foreign capital which is attracting foreign investors. The company registered a GDP of $5.07
trillion in the year 2013 following a further improvement GDP growth rate of 5% in the year
2014. Similarly, Wal-Mart opened their stores in India with the partner Bharti Enterprises with
the motive to generate profit by offering customers products of different choice with quality.