Wal-Mart takes on the World – Minicase
Wal-Mart Corporation, a private company based in the United States, has been famous all over
the world due to its low price retailing business despite numerous competitors such as Kmart,
Sears and Target among others. In the United States alone, it has an employment of almost one
million workers, aside from the over 300,000 employees worldwide. With this, it can be
concluded that Wal-Mart has created more jobs than any other companies globally.
Having the largest population in the world, India’s total labor force, comprised of self-employed,
wage and salary earning, casual and unemployed, was estimated at around 407 million in 1999 to
2000. The organized labor force of hired, regular and contractual employment is comprised only
of 14% the total labor force in which: 60.4% comes from agriculture; 22.3% provide services in
trade, hotels, business services and social and personal services; while the remaining 17.3% goes
to the industry consisting of manufacturing, mining and quarrying, construction, electricity gas
and water (National Sample Survey Organization, 2001). Unlike China who also relies on its
labor force, India’s labor market and competitive-edge is underrated and yet to be fully-tapped as
most of manufacturing industries and services are being done in the former.
With this, the paper aims to analyze the potential of India’s market sector and provide necessary
recommendations for the Wal-Mart prospective expansion operations.
II. Analysis of India’s Market Status – Using the SWOT Analysis (Strength, Weaknesses,
Opportunities and Threats)
Factors Strengths Weaknesses
Economic § Large human capital, as the services sector rapidly increases.§ From a state-run