A day after Wal Mart announced its entry into a JV with Bharti, India's commerce ministry has announced that they would like to look at the deal-
http://economictimes.indiatimes.com/articleshow/624780.cms
With the leftists raising a big hue and cry over possible loss of employment and the huge impact on neighborhood stores, this was bound to happen. I only wish they don't push Wal Mart away completely.
As my negotiation professor used to say, instead of thinking of every negotiation in terms of a pie with one party trying to get a bigger share than the other, you should look at creative ways of expanding the pie.
So how could they expand the pie. One idea that immediately comes to mind is that the Indian government could force retailers to source locally. This will give a huge boost to Indian manufacturing. If everything that Wal Mart and others sell in India comes from Mexico, Philippines and China, India will lose out big time. In India, approximately 40 million people are employed in the un-organized retail sector and a big chunk of this sector is going to be wiped out due to the entry of giant retailers. The best way out is to generate employment elsewhere.
Over the long-term, if Indian suppliers manage to get themselves embedded in the Wal Mart supply chain and do well on metrics like quality and relaibility, they could potentially get access to Wal Mart globally.
So I hope that this is treated as an opportunity and used to its full potential by the Indian government. And there's plenty of them lining up-Tesco, Carrefour, K Mart who knows-there's after all, a fortune to be made at the bottom of the pyramid in India.
PS: Since I royally screwed up my final exam on negotiation and scored my lowest grade on this elective, maybe I am not the right person to be offering advice on this situation.
http://economictimes.indiatimes.com/articleshow/624780.cms
With the leftists raising a big hue and cry over possible loss of employment and the huge impact on neighborhood stores, this was bound to happen. I only wish they don't push Wal Mart away completely.
As my negotiation professor used to say, instead of thinking of every negotiation in terms of a pie with one party trying to get a bigger share than the other, you should look at creative ways of expanding the pie.
So how could they expand the pie. One idea that immediately comes to mind is that the Indian government could force retailers to source locally. This will give a huge boost to Indian manufacturing. If everything that Wal Mart and others sell in India comes from Mexico, Philippines and China, India will lose out big time. In India, approximately 40 million people are employed in the un-organized retail sector and a big chunk of this sector is going to be wiped out due to the entry of giant retailers. The best way out is to generate employment elsewhere.
Over the long-term, if Indian suppliers manage to get themselves embedded in the Wal Mart supply chain and do well on metrics like quality and relaibility, they could potentially get access to Wal Mart globally.
So I hope that this is treated as an opportunity and used to its full potential by the Indian government. And there's plenty of them lining up-Tesco, Carrefour, K Mart who knows-there's after all, a fortune to be made at the bottom of the pyramid in India.
PS: Since I royally screwed up my final exam on negotiation and scored my lowest grade on this elective, maybe I am not the right person to be offering advice on this situation.
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