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Essay / Acquisition of Flipkart by Walmart
Table of ContentsCourse ConceptsLearning SourcesConclusionRecently I learned that global retail company Walmart is going to buy India's largest retailer flipkart by paying $16 billion for a majority stake 77% (Pham, 2018). However, I also read about flipkart that it increased its losses to 68% in FY17 and its valuation fell to $11.6 billion. I've been observing why an international retail company will buy a company that recently suffered huge losses, which led me to think that this acquisition may be part of Walmart's global strategic evolution. Walmart is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores and has 11,718 stores and clubs in 28 countries operating under different names (“Walmart,” 2018). While Flipkart is an Indian e-commerce company based in Bangalore, India. It has expanded its products from books to consumer electronics, fashion and lifestyle products and had 39.5% market share in the Indian e-commerce industry. Walmart's acquisition of Flipkart would be the country's largest acquisition and the world's largest purchase of an e-commerce company. This deal will include a new investment of $2 billion that will take Flipkart's value to $22 billion, which could be Walmart's strategy to support rival Amazon's global expansion ("Walmart Acquires Flipkart for 16 Billion Dollars in World's Largest E-Commerce Deal,” 2018). However, it is assumed that Walmart will use flipkart expertise to strengthen its global expansion. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get an original essay Course concepts To start with acquisition, which is an economic activity that creates synergies, economies of scale, increases power market and contributes to economic growth. This occurs when an acquiring company holds a significant stake in the target company by purchasing the target company's assets or equity, which plays an important role in future growth. However, Walmart's acquisition of Flipkart is considered the largest acquisition and purchase that will give Walmart access to the most attractive retail market in terms of size and growth rate, which Walmart was trying to suppress for a long time but could not due to regulations. My personal learning is that I used to think that acquisitions are just a collaboration between two organizations, but in reality there are always strategic motivations behind it which ensures the future growth of the company and this can be a method of entry for the acquirer to gain access to global competition by changing. resources towards higher potential markets. Other concepts are supply chain management system and resource and capacity variables. Supply chain management is an active supply chain of activities such as product development, production procurement, and logistics, along with an effective information system to coordinate these activities. While resources are assets, attributes, information, knowledge, etc. of the company that help to implement strategies whose ability to integrate improves its efficiency and effectiveness and its capabilities are the different resources of the company toprovide valued products. As an acquirer, Walmart looks forward to implementing its superior supply chain management system to bring expertise in online grocery and a strong food supply chain to become the world's best food retailer , as this major retail company operates 11,000 stores in 27 countries around the world. the world and manages an average of $32 billion in inventory. However, Walmart sees Flipkart's ecosystem as a real advantage of its resources and capabilities due to its strong hold on Indian e-commerce. Which consists of: General merchandise as a consumer business, clothing companies Jabong and Myntra as a complementary platform, its unique logistics network as a business platform. Regarding my learning experience, I think concepts such as supply chain management and resource and capacity variables were not clear to me and were new to me, but I got a clear idea of all these concepts during the lecture and article based discussions. All concepts are interconnected with acquisition. M&A decisions or entry modes for global expansion are always driven by the process of implementation and consideration. An acquirer always considers the variables of resources and capabilities, technological advancement of the target company, as every acquisition or merger has a strategic motive for future growth. Sources of LearningI think it is important to mention that I learned the most from Professor Bonita as she has vast knowledge and experience in this field. The slides related to stories and incidents from her international research and the videos she uses to show in class have always interested me in learning the concepts behind it. The class discussions and articles I read encouraged me to learn all the concepts and contributed positively to my interest in this topic. Although I was reluctant to participate in discussions, I gradually increased my knowledge and started participating in discussions. I became familiar with the foundations of global strategic management through reading articles and case studies. Additionally, all course materials are comprehensive, informative and based on real case studies from international companies. The weekly IB question always challenged me to push my thinking beyond the walls, even though I wasn't very good at it, but I learned to see the global movements and international transactions of multinational companies from an analytical point of view. For example, the IB question related to Tencent Holding Limited, Disney and GitHub, etc. forced me to think critically and put a lot of effort into understanding the concepts. Most of the basic concepts I understood in depth by answering the fourth IB question, Tencent Holdings Ltd. I learned PESTEL Factors, Growth Strategies, Porter's Five Forces and Business Core Competencies, VRIO in this IB question. However, I was able to learn about organizational restructuring and the impact of acquisitions in Disney IB issues. In addition to this, it also improved my research skills by researching the concepts, their implementation and their impact as an overall strategy that made my mind think and improved my analytical skills. Keep in mind: this is just a sample. Get a personalized article from our expert now. writers.Get a Custom EssayConclusionHowever,.