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Analysis Of The Walmart Flipkart Deal

   

Added on  2021-06-16

11 Pages2306 Words1736 Views
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Running head: WALMART ACQUIRES FLIPKARTWalmart Acquires 77 % Percent of FlipkartName of the Student:Name of the University:Author Note:
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WALMART ACQUIRES FLIPKART1Executive summary:Multinational companies use acquisition as strategic management tool to counteract challengesthey face from stronger competitors. The paper would explore the fact using Walmart’sacquisition of Flipkart as an example. It would show how these two companies would useacquisition as a tool to compete against Amazon, their biggest competitor.
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WALMART ACQUIRES FLIPKART2Table of ContentsIntroduction:....................................................................................................................................3Acquisition of Flipkart by Walmart:................................................................................................3The challenge:..................................................................................................................................3Solution:...........................................................................................................................................4Global and multinational strategy:...................................................................................................4Diversification and analysis of Multi-business Corporation:..........................................................5Conclusion and Recommendations:................................................................................................7Expand its product line through acquisitions:.............................................................................7Acquire companies across in new countries:...............................................................................8References:......................................................................................................................................9
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WALMART ACQUIRES FLIPKART3Introduction:The intense challenges compel companies to adopt strategies to counteract them.Acquisition and merger have emerged into formidable strategies which companies adopt toemerge as more formidable in the global market place. Multinational companies often acquirecompanies across industries to strengthen their positions. The paper would take into account theacquisition of Flipkart by Walmart in May 2018 which turned out to be the most expensiveacquisition in the ecommerce industry (walmart.com 2018). The paper would show how theacquisition would enable both the companies to compete against their competitor, Amazon. Theoutcome of the acquisition would be analysed from three angles namely, global andmultinational strategy, diversification strategies and analysis of multi-business Corporationand financial conditions and financial analysis. This would be followed by recommendationsWalmart.Acquisition of Flipkart by Walmart:Walmart, the American retail giant acquired Flipkart, the leading Indian ecommercecompany in May 2018. It acquired a 77 percent stake in Flipkart for $ 16 billion and the value ofFlipkart stands at $22 billion after this investment by the American retail company. Theacquisition is being touted as the biggest acquisition of an ecommerce company till date(stories.flipkart.com 2018). The acquisition was the outcome of competitive and sustenancestruggle both the companies were carrying against their biggest competitor, Amazon(seattletimes.com 2018).
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