Case Analysis 5
Mrtns9
WalmartinIndiaCase-1-1.pptMalmart
in
India
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Textbook Questions (same questions in the new edition case, but different numbering and case description (i.e., the written information slightly is different):
12-8. What are the biggest obstacles facing Walmart and other foreign retailers in India?
12-9. Summarize some of the elements in India’s political, economic, and cultural environments that can impact the market opportunity there.
12-10. Review Figure 12-4. Which quadrant of the matrix applies most directly to India? Why?
12-11. Going forward, to what degree will Walmart be required to adapt its business model in India?
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Walmart
- Partnering with Instacart to offer consumers same-day delivery, reported on Aug. 11.
Walmart+
- Launched on Sept. 15, 2020
- $98 per year
- Free same day delivery
With Tata set to take on Ambani, this is how a high-stakes, all-out retail war is about to play out
Tata Group is talking to Walmart for a $25 billion investment in a “super-app,” a multipurpose platform combining fashion, lifestyle and electronics retail, food and grocery, insurance and financial services, as well as digital content and education.
SoLoMo: Its Origin and Development: Being able to explore what’s on offer in a couple of clicks, consumers became more fastidious, expecting brands to adjust to their needs and preferences in an instant. All this gave rise to a particular approach to marketing, which is SoLoMo:
- Social: Regardless of the business type, it should be available via the internet and social networks such as Facebook, Instagram, or Twitter.
- Local: A consumer's location is essential for businesses, especially in retail, to make products and marketing messages more personalized and engaging.
- Mobile: Smartphones, tablets and laptops permeate our daily routine, so the importance of making a business available online shouldn’t be underestimated.
Shipt, which Target bought in late 2017 for $550 million. During April, May and June 2020, Shipt’s order volume nearly tripled from the same time last year, Caruso said.
Target, which recently reported a record-breaking sales quarter, saw revenue on orders fulfilled by Shipt grow more than 350% year-over-year in the second quarter.
Target Deal Days 2020: runs on the same days as Amazon Prime Day: Huge savings Oct. 13 to 14
Target has announced plans to ensure a strong performance during the important holiday season, hiring about 130,000 seasonal staff
Additional resources to ensure customers feel safe and comfortable
Some consumers are naturally concerned about COVID-19 safety when shopping in-store. "Consumers are actively looking for use of masks and physical barriers when deciding where to shop in-store," according to an Aug. 28 survey of U.S. consumer sentiment from McKinsey.
Same-day fulfillment and inventory planning
One-stop shopping appeals to consumers and could boost average basket size
Drone Delivery
- Walmart has struck deals with three drone operators to test how the technology could be used for on-demand deliveries and to help it better compete with Amazon.
- It is testing different drone uses, from dropping off groceries to delivering Covid-19 at-home test kits.
- Amazon recently got approval from the Federal Aviation Administration to operate its own drone fleet.
- United Parcel Service and Alphabet-owned Wing also have FAA approval for drone delivery.
Product discovery wars 2020: Google vs. Amazon
Google renamed its Shopping Express product discovery tool to Google Shopping, and improved capabilities to make it easier for consumers to find and buy products online.
Currently, more consumers use Amazon instead of Google to research products because Amazon has made it so easy for them to shop and buy and thus Google’s market share of search ad revenue is expected to drop from 73% this year to 70% by 2021, while Amazon’s market share will grow from 12.9% to 15.9% in the same period, according to an eMarketer forecast.
Google’s defensive move to improve its product discovery platform benefits both online retailers and traditional retailers with online stores. By removing the friction from online browsing to purchase, shoppers can now more easily buy products directly through Google’s shopping platform (like they would on Amazon or another retailer’s website).
Second, traditional stores with a solid online presence can get their products in front of more shoppers.
