Walmart- Flipkart Deal: In Search of Stability
(9 pages of text)
Case (Pub Mat)
In May 2018, US-based multinational retail giant Walmart Inc. (Walmart) took control of India’s biggest e-commerce platform Flipkart Internet Private Ltd. (Flipkart). Despite being the industry leader, Flipkart had been continuously losing market share to Amazon.com, Inc. (Amazon) and was looking for support from a deep-pocketed investor. This created an opportunity for Walmart to enter the Indian e-commerce industry, bypassing regulations governing foreign direct investments. However, the unprecedented growth of Amazon, new foreign direct investment rules in India, Reliance Industries Ltd.’s entry into e-commerce, and challenges due to COVID-19 all created unexpected turbulence for the new partners. How would the Walmart–Flipkart duo overcome these challenges? Would Walmart divest its investment in Flipkart and end its aspirations to become one of the largest e-commerce companies in India? Or would the duo overcome these challenges together and emerge as winners?
This case is intended for use in graduate- and postgraduate-level courses on strategy, marketing, and communication. After working through the case and assignment questions, students will be able to:
- Discuss different factors that might affect the divestment decision of a company.
- Conduct an analysis of the strengths, weaknesses, opportunities, and threats (SWOT) of a company, and discuss the company’s future course of action.
- Explain how a company can continue in a market despite strict or unfriendly government policy changes.
- Discuss market leaders’ strategies for maintaining leadership amid unparalleled growth of competitors in an industry.
- Describe the challenges that incumbents face due to the entry of new competitors, and develop strategies to tackle these challenges.
- Explain how a company can manage an unprecedented crisis and grow despite obstacles that emerge.
Germany; India; United Kingdom; United States, Large, 2020
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download