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Market Entry Strategy.Contemporary International Marketing Issue. Wal-Mart Stores Inc. - Assignment Example
Market Entry Strategy.
Due to which, it is recognised as the world's second largest public corporation that enhanced its revenues by US$ 469.162 billion and net income by US$ 016.999 billion by the first quarter of 2013. …
Critical evaluation of market entry strategy used by Wal-Mart at the time of entering India
The retail market of India is one of the largest growing sectors and it contributes to about 15%, towards the GDP of the country. Retailing sector is the most organized sector with large amount of target customers of annual income of more than Rs 45 lacks. Keeping such scenario in mind, Wal-Mart, one of the largest retailers of US decided to enter into the market of India (Onkvisit & Shaw, 2004, pp. 456-470).
However, Wal-Mart entered the market of India through the strategy of franchising in order to capture it. It is the procedure in which, the franchisor presents a chain of stores to distribute varied types of products to its target customers. This strategy proved quite effective for Wal-Mart as it helped in fulfilment of the vision of presenting best quality of products at lowest possible prices. Due to which, the level of customers started increasing at a considerable level, thereby creating a stable position in the market among other retail owners. Along with this, its market share also enhanced from 5% at initial sages to about 35% in the year 2011-2012. Apart from this, the total sales increased from US $ 412.112 billion to US $ 435.127 billion in 2012, among other retailers in the market. Due to which, the level of reputation and brand image of Wal-Mart increased to a considerable extent that proved quite effective for the entrant to dominate other retailers. ...