Survival of the fittest

by Deepak Sharma on Monday, August 16, 2010

Charles Darwin once said, “In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment.”. Walmart is doing just the same in India. It is going out of it’s shell and adapting new measures to first survive and then probably one day thrive against all odds. The odds include Indian Government’s Foreign Direct Investment (FDI) policy restricting Walmart to act as a wholesaler only, low efficiency/dependability of suppliers, expectation of free credit by the small time vendors (who are essential to Walmart’s growth given the restriction to act as Wholesaler). To counter these odds, Walmart’s India Angle includes the following measures:

    • Inventory levels are kept high because suppliers are less reliable
    • Goods are delivered to the buyer’s doorstep
    • Regional focus: All suppliers in the same state as the stores
    • Collaborative farming, on verbal commitments
    • Free credit to buyers through credit cards

Read more. It happens only in India.