Question

Students are required to address the questions below by using academic theory and concepts. (Some suggested resources covering aspects of the case have been posted on Blackboard as a start).

Students are required to research the acquisition of Flipkart an e-commerce company based in India by Walmart the US multinational retail corporation.

Overall word limit: 3000

QUESTIONS

1. With reference to the academic literature and using various units of analysis (global, national, industry) of external environmental factors, suggest the most important external issues driving the acquisition of Flipkart by Walmart.

2. Conduct internal analysis utilising relevant academic literature and discuss the areas of expected internal benefits and synergies for both companies.

3. With reference to the academic literature, explain the risks associated with this choice of acquisition. Discuss the potential managerial challenges in terms of post-acquisition integration.

4. Drawing upon academic literature and theory, critically discuss the possible effects, both positive and negative, of the acquisition on the domestic retail market in India.

5. By using evidence from your research, discuss the possible effects of the digital disruption that has contributed to the acquisition. Speculate on the impact of digital disruption on this ‘acquisition’ of Flipkart by Walmart.

Answer 1

Q1 answer

Merger and Acquisition are strategic tools used time to time by companies to get the cutting edge over competitors and capturing the market. In the world of competition big fish eats small fish and so on. The concept of acquisition and merger is always backed up by the concept of strategy thinking and growth of the market size, international foot print of the organization. The proposed research work focuses on the working styles of the Walmart and Flipkart, both are big giants at their respective places both of them has acquired many companies to support their existing business or to expand the territory of business

ADVANTAGES AND DISADVANTAGES OF THE DEAL

Acquisition and merger of any organization has some advantages and disadvantages, it has some long term effects and immediate reaction from market. Every entity which is related to the deal directly or indirectly has some reaction on the deal. The Confederation of All India Traders (CAIT) said the deal is nothing but a clear attempt to control and dominate the retail trade in India by Walmart through e-commerce in the long run

There will be an uneven level playing field to the disadvantage of retail traders. Only the venture capitalist, investors and promoters will be benefitted and not the country