Walmart and Bharti

Jun 21st, 2015
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University of Minnesota Medical Center. Fairview
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The formation and dissolution of corporate partnerships is nothing new, particularly in the global marketplace. Venturing into a partnership is always spurred by some objective.

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Walmart and Bharti - An International Partnership Part OneStuart Haack, Kristy Junio, Zeyad Maasarani, Kim TabaretzThe formation and dissolution of corporate partnerships is nothing new, particularly in the global marketplace. Venturing into a partnership is always spurred by some objective. In the case of Bharti and Walmart, it was due to the untapped riches of the emerging Indian retail marketplace. Walmart had been expanding internationally for some time, but had never been able to break into Indias market due to strict government regulations which limited foreign direct investment (FDI) to 51% (Bose, p. 3, 2012). By developing a 50-50 venture for back-end supply chain management and wholesale cash-and-carry operations, (Bose, p. 9, 2012) Walmart was able to utilize Bhartis domestic corporate headquarters as a doorway to this vastly expanding market. On the other side of business development, Walmart was allowed to franchise itself while sharing expertise and technology with Bharti to support the retail stores that would be built by Bharti Retail Ltd, its wholly owned subsidiary. (Bose, p. 9, 2012). Foreign multi-brand retailers, in lieu of sharing ownership, were also allowed entry into the India retail market by sharing information and technology with Indian domestic partners (Bose, 2012). Another reason for the partnership as stated by Sunil B. Mittal, chief executive of Bhart

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