Good Example Of Multinational Corporation - Case Study Essay

Walmart is the World's largest retailer is one of the multi-national corporations, which has sought to expand itself internationally for some time, especially to enter into India. However, it had never experienced the opportunity to break into India’s market on account of stringent regulations that the government enforces and which limited foreign direct investment (“FDI”). This case will, therefore, examine the strategic approach that WalMart has adapted to maximize and intensify its competitive advantage by means of strengthening and controlling its supply-chain.
Accordingly, Rataul (2009) asserted that Wal-Mart opened its cash-and-carry dual enterprise with the telecommunication giant, Bharti Enterprises, which the successful cries of 'Bharti-Wal-Mart is King' accompanied. At that time, it was still a few steps from unveiling its entire act because India failed to allow direct foreign direct retail investment. Nonetheless, again, the high-pitched launch brought forward the demand that would allow FDI into retailing.
Based on a report, Wal-Mart as an international retail giant, has registered a new company in India as it makes preparation to gain entrance into the country's profitable multi-brand retail market. This new corporation will become instituted in collaboration with an innovative partner. The Bahari enterprises and American retail giant decided separate in October of 2013, thereby bringing an end to a six-year extended partnership. According to the Ministry of Corporate Affairs, accessible data, this retailer has indexed a new company called 'Wal-Mart India Private Ltd,' in the country. In fact, the information indicates that on January 15, 2014, the new body became registered. After Walmart separated from Bharti group in October, she said that she was intent on executing a feasibility study of India's FDI strategy in regards to developing a multi-brand retail entity before she finalized plans to enter the sector (Press Trust of India, 2014).
Press Trust of India, 2014 further contended that Wal-Mart and Bharti Enterprises had decided to operate autonomously and own separate business arrangements in the country. As a result, Wal-Mart continued to make enquiries for an associate in India, for which she received permission from the Competition Commission of India (CCI) in regards to purchasing Bharti group's almost 50 percent chance in their Indian combined business enterprise for wholesale stores. Underneath the Best Price Modern Wholesale brand, they set up Bharti Wal-Mart Private Ltd to manage wholesale stores. However, it did not cater directly to retail customers within the country.
Subsequently, Worstall, (2014) posits that there is a debate going on in India as to whether foreign retailers should receive permission, to gain full access so as to execute trading in that country. There has also been an ensuing behind the scene discusses and since the election, persons seem to stop talking about the aspect of allowing foreign retailers into the country since it seems like a complicated political query. However, from the viewpoint of economic policy, it is instead an very straightforward one. India, therefore, should abandon the restrictions, which hinder the Wal-Marts from entering the country as completely foreign-owned establishments. Moreover, doing so would create an immeasurably richer country that would always become a sign that a high-quality piece of economic course of action has become implanted.

References

Press Trust of India, (2014). Global retailer Wal-Mart sets up new company in India: report - NDTV. [online] Profit.ndtv.com. Available at: http://profit.ndtv.com/news/corporates/article-global-retailer-wal-mart-sets-up-new-company-in-india-report-378085 [Accessed 3 Mar. 2015].
Worstall, T. (2014). Why India Should Welcome WalMart With Open Arms. [online] Forbes. Available at: http://www.forbes.com/sites/ timworstall/2014/07/28/why-india-should-welcome-walmart-with-open-arms/ [Accessed 3 Mar. 2015].