Wal‐Mart in India: a success or failure?

Abstract

Purpose The main purpose of this paper is to explore the challenges that Wal‐Mart may face as it expands into the Indian retail market. Wal‐Mart's failures in Germany and South Korea are analyzed to identify learnings that could be utilized in the Indian expansion. Design/methodology/approach Dunning's eclectic theory as applied to international expansion is used to analyze Wal‐Mart's advantages and disadvantages in Germany and South Korea. The theory is then applied to India to understand the possible advantages and disadvantages for Wal‐Mart in entering the Indian retail market. Findings The key findings of the study are that Wal‐Mart faces many ownership as well as locational disadvantages while expanding in India. These significant challenges need to be well‐understood and suitably addressed for success in the Indian market. Originality/value This report makes a contribution towards understanding the challenges in entering an international market using a case study. The study helps analyze international experiences can be leveraged in future plans of international expansion.