VOLUME - 6, ISSUE – 2, JULY.TO DEC,2020 ISSN NO. : 2455-4642 (ONLINE)
IDEES –International Multidisciplinary Research Journal
(Peer Reviewed)
A Research Paper
On
Wal-Mart and Flipkart-An outlook on major buyout
By
Prof Himisha H Kawedia
Abstract
India’s retail landscape is suddenly come into limelight with its merger and acquisition.
Flipkart holding $16 billion has shifted its wholesale unit and it got acquire by its close
relative company called walmart. The Walmart style of going global is examined and why
this Indian acquisition is important. The Flipkart story is examined to understand how it rose
from being a simple online bookseller to become gigantic challenging even global giants.The
major deal was to enhance the capabilities in terms of advance technology, Inbound and
outbound logistics and even to obtain finance. This study is of significance in understanding
the dynamics of the online retail sector and derives implications for various stakeholders. The
case traces the evolution of Flipkart as a startup and explores the context of acquisition by
Walmart as well as the strategic fit between the two firms. Technological changes—mainly
the explosion of internet, mobile technology and the consequent digitization—have
irretrievable impacts on the retail segment in terms of convergence of on-line and off-line
retail and globalization of the markets. The case explores the emerging digitization scenario
and its impact on the retail segment as a trigger to the merger process. The research basically
focus on flipkart whose been one of leading player in the market and while tying up with
walmart it is estimated to grow four times. This tie-up is immense importance for Indian
economy as it adds up fuel to Indian economy to compete in global markets.
Keywords: Walmart, Flipkart, Acquisition and Merger E-commerce, Startup
INTRODUCTION
Mergers and acquisitions (M&A) are defined as consolidation of companies. Differentiating
the two terms, Mergers is the combination of two companies to form one, while Acquisitions
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