International Marketing Report: Analyzing Wal-Mart India's Strategies

This report provides a comprehensive analysis of Wal-Mart India's international marketing strategies. It begins with an overview of the company and its operations in India, followed by an in-depth examination of the external environment using PESTLE analysis and Porter's Five Forces to assess political, economic, social, technological, legal, and environmental factors, as well as competitive forces. The report then delves into the internal environment, utilizing Porter's value chain to evaluate primary and support activities. A key section addresses the reasons behind Wal-Mart India's challenges and failures, drawing lessons learned from its experiences. The report also explores different modes of entry and proposes an alternative marketing strategy. The report's structure includes an introduction, overview of the company, external and internal environment analysis, the reason behind the failure, lessons learned, mode of entry, marketing mix, conclusion, references, and appendices containing detailed supporting analyses. The report is a valuable resource for understanding the complexities of international marketing and the specific challenges faced by a major retailer in a dynamic market like India.

International Marketing
3/31/2018
Wal-Mart India

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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

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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

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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.

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Social factors: - The social factors include the beliefs and values of the citizen of India. Most of
the people in India don't like to visit stores for purchasing products as they generally visit the
nearby Kirana stores from where they can purchase the essential products. This affected Wal-
Mart India as they were not able to generate the sales and revenue. Moreover, in India, there are
6, 49,481 villages so these people don’t visit the place to buy the products and generally prefer
kiranas.
Technological factors: - The technology factor includes the use of the advanced technology in
the business. The availability of the software and the use of 3G and 4G are available which is
one of the benefits for the company as they can offer the products through online medium. The
best price store offers online services but before browsing the customer has to prepare the
account which was one of the issues as most of the people don’t want to prepare the account
before browsing the sites (Best Price, 2018).
Legal factors: - The legal factors include the strict rules and regulations introduced by the
government that can affect the foreign investors. Wal-Mart got affected because of the policy of
foreign direct investment rules of India. The Indian government didn't give permission for the
FDI in the multi-brand retail (Bengali, 2015). Moreover, the company faced the allegations
related to the violation of rules and bribery in India.
Environmental factors: - The environmental factors include the concern related to the waste
management, energy consumption, packaging and many others. In India, the company faced
obligations related to the minimum wage increase, disability discrimination, recycling which
created the impact as the company was not able to generate the profit out of Indian stores then
they have to pay high wages to the workers.

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Porter’s five forces
Porter’s five forces is a tool that is used for the analysis of the competitors of the business in the
market (Hollensen, 2015). Below given is the analysis of the Wal-Mart competitor’s forces in the
Indian Market. Please refer Appendix 1.2 for the further analysis of the Wal-Mart India.
Bargaining power of suppliers- HIGH
Wal-Mart exported all the products from their manufacturing units because the company is a
well-known wholesaler. Moreover, they also formed tie-ups with the companies who can offer
them other products considering the requirement of the Indian people (Lovelock, 2011). But they
have to pay a high amount for same because suppliers in India generally charge from new
companies. Though, the company believes in forming the sustainable relationships with the
suppliers.
Bargaining power of customers- HIGH
The bargaining power of the customers is high in the market because they can switch to other
customers easily. The price is the only factor that is the concern of the most of the people in
India. Wal-Mart tried to offer the best price in the market but through the customer can find the
product at the low price in small retail shops they bargain.
The threat of substitutes of products or services- HIGH
Wal-Mart faced the high threat because the grocery items were easily available at Kiranas and
small retail shops (Chernev, 2018). Apart from it, there are some reliance stores who offer all the
products in one place. Indians mainly rely on Kirana store because they get daily wages from
which they daily purchase the products from the nearest store.

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The threat of New entrants- Medium
Most of the companies are getting attracted towards Asia region considering the growth in the
economy of the regions due to which the companies face the threat of new entrants. Though, on
the other hand, while evaluating the market of India they found that many international
companies are facing issues in the market of India which might make them move towards the
other markets.
Industry rivalry- High
There are numerous department stores, grocery stores available in the market that might make
the competition intensive. The major competitors of the Wal-Mart include Big Bazaar, D-Mart,
Reliance fresh and many others. The industry rivalry is high because these companies are
offering the best price to their customers with the best quality and along with this these
companies are well-known in the Indian Market.
Internal environment Analysis
The internal environment is composed of the elements within the organization that include
employees, management, culture, and many others (Lamb, Hair & McDaniel, 2011). The proper
management of Wal-Mart India is essential for the success of the business in the Indian market.
Below given is the porter’s value chain analysis of the Wal-Mart India.
Porter’s value chain
The porter’s value chain is an analytical framework that provides the assistance to the company
in identifying the activities that can create competitive advantage and value for the business
(Armstrong, Adam, Denize and Kotler, 2014). Please refer Appendix 2.1 for the further analysis
of the Wal-Mart India.

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Primary activities
The main component of the primary activity is inbound logistics- Wal-Mart inbound objectives
include the supply chain (David, 2011). There is very less number of traders involved in the
supply chain of the company as the company believes in dealing with manufacturers directly due
to which the company believes in saving the cost of distribution (Dudovskiy, 2016).
Another component of these activities is operations; Wal-Mart Company has its operations at
different locations in the form of their stores with the name Best Price which state that they offer
the product at best price. Outbound logistics; In the Indian market, the company opened stores in
different states so they have to ensure that they are effectively able to maintain the stock in every
store.
Along with this, the marketing and sales component is also included in the primary activities of
the company. Wal-Mart marketing and sales strategy were not so effective for the market of
India due to which they were not able to grab the attention of the customers (Ho, 2014).
Service is one of the crucial elements in each and every market. Wal-Mart believes in providing
effective services to improve the customer service. Best price stores of the company were able to
provide the effective prices to the customers but there is a need for the improvement.
Support activities
The components that are included in the support activities are Firm infrastructure, human
resource, technology development and procurement. Firm infrastructure; In Best price stores the
company tried to manage the products in their stores so that it will become convenient for the
customers.

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Human resource; In India there are many people who are skilled but many are unskilled labors
due to poverty. The effective human resource can contribute to the helping the organization to
establish a strong customers base. Though, Wal-Mart Company was not able to attract the
talented employees who can actually work for the company.
Technology development; the company can make use of effective technology in their products
and services with the help of which they can grab the attention of the customers. Moreover, to
conduct the primary activities effectively there is a need for the technology development (Frynas
and Mellahi, 2015). Procurement of the goods is one of the essential components that are
essential for every company as this is one of the ways through which the company can easily
make the goods available at its stores.
The reason behind the Wal-Mart India's Failure
The company faced many issues due to which they were not able to cope up in the market of
India. Initially, the major issue was the policy of the government which is needed to be fulfilled
by the company. This policy states that the company has to source at least 30% of the products
from small and medium Indian businesses (Lutz, 2013). Apart from it, the culture and social
influence of the people on the purchase decision was one of the factors due to which they were
not able to establish a strong customer base. Most of the villagers were not able to visit the best
price stores as the villagers generally work on the daily paid wages and they make a purchase of
necessity products from the nearest stores. Apart from this, the people who live in the urban
areas prefer different stores to make a purchase (Heimken, 2014). These stores include Reliance
fresh, big bazaar and any small retail outlets nearby home. These were the major problems which

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were faced by the company in the Indian market. Please refer Appendix 3 for the further analysis
of the Wal-Mart India.
Lesson learned
The partnership of the company was not so effective due to which the company had finished its
partnership with the Bharti Enterprises as the company was Conglomerate Company who offers
the products and services related to the telecommunication. It is suggested to the company to get
involved with the company who deals in the same industry because Wal-Mart might be able to
grab the details related to the suppliers and investors of the company.
Another important decision which was made by the company was suspending the chief financial
officer and the other executives in the year 2013-2014. The company brought their new chief
executive Krish Iyer (Thomas, 2017). He shifted its focus from retail outlets to the wholesale
industry. The company learned that their target is wholesaler buyers instead of the retail
consumer. The motive of the company is to get involved in the wholesale industry where they
can provide their products directly to the wholesale buyers.
Mode of entry
Initial mode of entry
The company initially made use of joint venture in which the company formed the partnership
with the Bharti Enterprise which was not successful as both the company belongs to the different
industry so Wal-Mart was not able to take the advantage of the benefit of a joint venture (Yan,
and Luo, 2016). The company was not able to share any details related to suppliers, technology,

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products, customer preference or choice and many others. Though, both the companies shared
the loss or profit made during the partnership.
An alternative mode of entry
It is suggested to the company to make use of the franchising mode of entry. This mode of entry
is defined as a semi-independent business in which the owner pay fees and royalties to a parent
company in return they get the right to become the identifies with its trademark to sell the
products and services (Nielsen and Nielsen, 2011). The reason behind the franchising mode of
entry is done after analyzing the market entry mode of company's like McDonald, Pizza Hut, and
many others.
This is an effective way to make the presence in the market of India along with this the owner
who will take the franchise is aware of the culture and the trend of the market of India due to
which they can easily make the business successful. Please refer Appendix 4 for the further
analysis of the Wal-Mart India.
Marketing mix
Considering the analysis of the company in the Indian market the strategies below strategies are
recommended. Please refer Appendix 5 for the further analysis of the Wal-Mart India.
Product
The products include groceries, entertainment, hardware, apparel, home furnishings, and other
appliances. The company ensures that along with the price they are offering quality. It is
recommended to the company to allow the customer to browse the website first before making

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the account for the purchase as this is the way they can attract the customers towards their
product (Wal-Mart India, 2018).
Price
Wal-Mart keeps the name of the stores as the best price which shows that the company has faith
in providing the products at best price. Along with this, it is recommended to the company to
bring the discount and offers on the products (Dudovskiy, 2016). Most of the Indian don’t see the
price but they observe the discount which they are getting. Therefore, the company should keep
the high discounts at the affordable prices.
Place
The best price stores are available in India with the concept of cash and carry store spans more
than 50,000 square feet offering over than 5,000 items across the product categories as consumer
packaged goods, general merchandise, appliances and many others (Wal-Mart India, 2018). It is
recommended to the brand to open the outlets at prime locations so they can grab the attention of
the customer. Moreover, the brand should open their small stores in India at those places where
customers are not able to get the products easily because of long distance.
Promotion
Currently, the company is making use of promotion for their products which is not enough
considering the Indian Market. The company should make use of print media which include the
advertisement in a newspaper, pamphlets, hoardings and many others (Rowley, 2016). More they
should form tie-ups with an online vendor who can display the products and forward the
customer to the Wal-Mart website. In addition, the effective source is an advertisement on
television across India which makes the people visit the stores once.

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Conclusion
The report shows that how external and internal forces affect the working of the Wal-Mart in the
Indian market. The analyses of the external and internal factors are discussed with the help of
PESTLE, Porter's five forces and porter's value chain. The company faced numerous issues
which are discussed in the report along with the lessons which were learned from the company.
Further, the paper reflects the market mode of entry and the marketing mix strategies related to
the company.

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References
Armstrong, G., Adam, S., Denize, S. and Kotler, P. (2014) Principles of marketing. 6th
edition. Welbourne: Pearson Australia.
Bengali, S. (2015) Wal-Mart, thwarted by India's retail restrictions, goes big: wholesale
[Online]. Available from: http://www.latimes.com/world/asia/la-fg-india-walmart-20150723-
story.html [Accessed on 31st March 2018]
Best Price (2018) Activate Online Account [Online]. Available from:
https://www.bestprice.in/Registration/login.aspx?ReturnUrl=http://www.bestprice.in/
default.aspx [Accessed on 31st March 2018]
Bhasin, H. (2018) Marketing Mix of Walmart [Online]. Available from:
https://www.marketing91.com/marketing-mix-walmart/ [Accessed on 31st March 2018]
Business Set Free (2017) Porter’s Value Chain [Online]. Available from:
http://www.businesssetfree.com/porters-value-chain/ [Accessed on 31st March 2018]
Chernev, A. (2018) Strategic marketing management. 9th edition. Cerebellum Press.
David, F.R. (2011) Strategic management: Concepts and cases. Pearson/Prentice Hall.
Dawson, J.A. (2014) The Marketing Environment (RLE Marketing). New York: Routledge.
Dudovskiy, J. (2016) Walmart 7Ps of Marketing [Online]. Available from: https://research-
methodology.net/walmart-7ps-of-marketing/ [Accessed on 31st March 2018]

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Dudovskiy, J. (2016) Walmart Value Chain Analysis [Online]. Available from:
https://research-methodology.net/walmart-value-chain-analysis/ [Accessed on 31st March
2018]
Frynas, J.G. and Mellahi, K. (2015) Global strategic management. USA: Oxford University
Press.
Grant, R.M. (2016) Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Heimken, A. (2014) Why Do Western Businesses Fail in India? [Online]. Available from:
https://www.nbcnews.com/news/asian-america/why-do-western-businesses-fail-india-
n178091 [Accessed on 31st March 2018]
Ho, J.K.K. (2014) Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), pp.6478-6492.
Hollensen, S. (2015) Marketing management: A relationship approach. Pearson Education.
Javorcik, B.S. and Saggi, K. (2010) Technological asymmetry among foreign investors and
mode of entry. Economic Inquiry, 48(2), pp.415-433.
Lamb, C.W., Hair, J.F. & McDaniel, C. (2011) Essentials of marketing. Cengage Learning.
Lovelock, C. (2011) Services marketing: People, technology, strategy. India: Pearson
Education India.

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Lutz, H. (2013) 4 Countries That Wal-Mart Has Failed To Impress [Online]. Available from:
http://www.businessinsider.com/countries-that-wal-mart-hasnt-dominated-2013-10?IR=T
[Accessed on 31st March 2018]
Mba Skool (2018) Walmart Marketing Mix [Online]. Available from:
https://www.mbaskool.com/marketing-mix/services/16887-walmart.html [Accessed on 31st
March 2018]
Nielsen, B.B. and Nielsen, S. (2011) The role of top management team international
orientation in international strategic decision-making: The choice of foreign entry
mode. Journal of World Business, 46(2), pp.185-193.
PESTLE Analysis (2014) PESTLE Analysis of India in five Steps [Online]. Available from:
http://pestleanalysis.com/pestle-analysis-india/ [Accessed on 31st March 2018]
Pratap, A. (2017) Walmart PESTEL Analysis [Online]. Available from:
https://www.cheshnotes.com/walmart-pestel-analysis/ [Accessed on 31st March 2018]
Richter, T (2012) International Marketing Mix Management. Logos Verlag Berlin Gmbh
Rowley, J. (2016) Information marketing. 2nd edition. New York: Routledge.
Thomas, T. (2017) How Walmart pivoted its India strategy and succeeded [Online].
Available from: https://www.thehindubusinessline.com/companies/how-walmart-pivoted-its-
india-strategy-and-succeeded/article9944164.ece [Accessed on 31st March 2018]
Wal-Mart India (2018) About Us [Online]. Available from:
https://www.wal-martindia.in/about-us [Accessed on 31st March 2018]

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Wal-Mart India (2018) Membership [Online]. Available from: https://www.wal-
martindia.in/membership [Accessed on 31st March 2018]
Wal-Mart India (2018) Our Stores [Online]. Available from:
https://www.wal-martindia.in/about-us/our-stores [Accessed on 31st March 2018]
Yan, A. and Luo, Y. (2016) International joint ventures: Theory and practice. Routledge.

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Appendix
Appendix 1 External environment analysis
The external analysis of the Wal-Mart India has been conducted with the help of PESTLE
analysis framework along with Porter's five forces (Dawson, 2014).
Appendix 1.1 Pestle analysis
PESTLE analysis is an analytical tool that is used for the strategic business planning.
(Source: Dawson, 2014)
Factors Description
Political factors  Instability from last few years- The changes in the rules related to the
retail industry takes place on a frequent basis in India which is a threat
for the Wal-Mart.

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 Regulations- The government has bounded foreign retailers to
purchase 30% of the products from small and medium Indian
businesses.
Economic factors  Liberalization- Liberalization has opened the opportunity for the
international companies (Bengali, 2015).
 Increase in GDP- Wal-Mart got attracted considering the rise in the
GDP of the country. GDP was $5.07 trillion in the year 2013 with the
further expectations of 5% growth in 2014.
Social factors  Purchase from Kirana- Most of the Indians make the purchase from
the nearest Kirana stores because they think that these stores can offer
them fresh products.
 Daily wages- Most of the villagers work on daily wages due to which
they prefer small retailers instead of best price stores.
Technological
factors
 Advanced Technology- There is the availability of the advanced
technology such as the use of 3G and 4G. Best price stores offered the
online facility to their customers (Ho, 2014).
 Effective use- Wal-Mart didn't make use of the technology in an
effective way which affects the company.
Legal factors  FDI policy- The policy of India related to FDI was strict as the
government didn’t give permission for the FDI in the multi-brand
retail earlier.
 Allegations- Best price stores also faced the allegation of the violation
of the rules in the market of India.

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Environmental
factors
 Regulations related to the environment- In Indian market Wal-Mart
has to follow the regulations related to the environment.
 Recycling products- Wal-Mart brand has to ensure that they are
making use of the products which are not formed from the material
that can impact the environment of the country.
Appendix 1.2 Porter’s five forces
Bargaining power of suppliers- The bargaining power of the suppliers includes the negotiations
that the supplier generally performs with the companies (Dawson, 2014). In the Indian market,
the company formed the tie-ups with the suppliers so that they can source the products according
to the customer demand.
Bargaining power of customers- In the retail industry, the bargaining power of the customers
remains generally high because the consumer switches easily where they will find the same
product at low cost with better quality at other stores.

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The threat of substitutes of products or services- Threat of substitute of the product arises when
other companies provide the similar sort of products in the market. Wal-Mart faced the high
threat of substitute for products because there are many small retail outlets and Kirana stores.
The threat of New Entrants- The threat of new entrants is increasing in the Asian market because
many investors are willing to invest their amount in the Indian market with the hope to earn a
profit (Bengali, 2015).
Industry rivalry- This force includes the strength of the competitors of the company. There are
many companies who are already established in the market of India such as D-Mart, Big Bazaar,
and many others. These companies are competing highly intensive in the market of India.
Therefore, Wal-Mart has faced high competition in the Indian Market.
Appendix 2 Internal environment Analysis
There are many elements that create an impact on the working of the company. Below given is
an internal analysis of Wal-Mart in Indian Market (Dudovskiy, 2016).
Appendix 2.1 Porter’s value chain
The value chain consists of two activities one is primary and another is support activities.

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(Source: Dudovskiy, 2016)
Primary activities
The primary activities are the major activities that are performed by the company in the Indian
market.
Inbound logistics- The company motive in the Indian market was to contact with manufactures
directly. Though, after considering the legislative of the Indian market the company has to
purchase approximately 30% of the products from the small and medium companies (Lutz,
2013). The company always try to purchase the products from the suppliers at the low prices
which company was not able to implement in India.
Operations- Wal-Mart has its operations in approximately 27 countries with more than 11,000
stores. In India, the company opened 21 stores in 9 states (Wal-Mart India, 2018).
Outbound logistics- It is one of the primary activities which show how the company manages its
external operations. Wal-Mart has to ensure that they are able to deliver the products at each of
its stores in India so that they can effectively meet the needs of the company.

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Marketing and sales- It is a most important component for the company in its new market. The
company didn’t use online marketing which is an effective way to promote the product in the
market.
Service- All the activities were conducted by the company to provide the effective service and
satisfaction to their customers.
Support Activities
Support activities are those activities that provide the support to the primary activities for the
smooth working.
Firm infrastructure- It supports the services aspect as the infrastructure of the stores should be
organized which will add on to the experience of the customers with the company (Chernev,
2018).
Human Resource- It supports every component of the primary activities so this is the most
important component. In India, the company was not being able to make use of labors in their
business because of lack of leadership qualities.
Technology development- It is possible in India as most of the research stations and technology
development take place in the country. Therefore, the company can effectively make use of
technology in the market to compete with competitors.
Procurement- Wal-Mart has to ensure that they are having the warehouses in India so that they
can fulfill the needs of the goods at the stores on time.

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Appendix 3 Reason behind the Wal-Mart India’s Failure
There are many reasons due to which the company was not able to achieve the success in the
market of India. Some of the reasons are-
Government rules and regulations- The rules and regulations of Indian government related to the
trading affected the working of the company directly due to which they were not able to make
the space in the market.
Allegations- The government also put allegations on the company for bribery and violation of the
rules and then they didn’t provided permission for the different activities which impacted the
company.
Culture and social factors- The major impact was the culture factor in the Indian market. Most of
the Indian believes in making the purchase from the Kirana store and corner small retail shops
because they find it more convenient and fresh foods.
The company learned a lot from there a failure in the market of India. This is the reason
company has broken its partnership with the Bharti enterprise company. Moreover, the company
suspended the CEO and hired the new CEO so that they can improve their operations across the
world. The company also struggled to understand the actual meaning of the localization as
through this they can maintain the effective strategies to meet the expectations of the customers.
Appendix 4 Mode of entry
Market entry mode plays a vital role for every company who is looking to expand the business in
the foreign market (Javorcik and Saggi, 2010). Wal –Mart also made use of the entry mode while
entering in the market of India.

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Joint venture
Earlier the company formed the partnership with the Bharti enterprises, a Conglomerate
Company. The company didn’t find this joint venture effective because the industry of both the
companies was different due to Indian company Bharti enterprises was not able to provide proper
support to the Wal-Mart. The partnership was not effective because the leader of the Wal-Mart
was not able to properly interact with the partner.
Franchising
It is recommended to the company to enter with the franchising mode of entry. Now, the focus of
the company is to target the wholesale customers so for that there is a need for the high amount
of fund. Investing high amount of fund is not effective for the company due to which it is
suggested to allow the other person to open a franchise with the name of the Best Price. Being in
this mode of entry, the company can ensure the good amount. Moreover, they don’t have to
spend time in understanding the customer needs and requirements (Nielsen and Nielsen, 2011).
This is one of the ways through which the company can quickly expand its business at numerous
places. Apart from it, there are many other benefits to the company if the company will get
indulge in Franchising. Though, in the franchising, the Wal-Mart should analyze the background
of the owner who is taking the franchising.
Appendix 5 Marketing Mix
Marketing mix refers to as the set of marketing tool that is used by the company to pursue its
marketing objectives in the target (Richter, 2012).
Product- Wal-Mart sells a wide range of the products in the market through their stores (Mba
Skool, 2018). It is suggested to the company to manufacture the products with their own brand

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name in the market of India considering the needs of the customers. Moreover, the company
should offer the combos to the wholesale customers.
Price- Price is one of the most important elements of the strategies formed by the company. This
is the fact that the company makes sure that they are able to provide the products at the low
prices.
Place- Place is another important element which shows the physical presence of the company in
the form of its stores. At their stores, the company provides product under one roof (Bhasin,
2018). It is suggested to the company to expand their stores at the location where the people can
visit. The company can make the changes in their stores according to the culture of the country
which might attract the person.
Promotion- The promotion is essential for any business in the new market. Wal-Mart India
should also promote their new stores in the market. It is suggested to the company to accept the
culture and promote the products through online and offline stores. They can launch the discount
card through which they can get the discount on the purchase of the products with the company.