Walmart-Flipkart Acquisition: a case study
- 1Amity Business School, Amity University, India
Int. Res. J. Social Sci., Volume 9, Issue (2), Pages 21-31, April,14 (2020)
There are various reasons of increasing M&A however, most acquisitions and mergers are done to reduce competition. Year 2017 was the booming year for mergers and acquisition activity specially in e-commerce sector as this sector saw M&A worth $2,112 million according to report of Grant Thornton. Further, India has a potential to nurture more than fourfold to approx. $150 billion by the year 2022, affected by increasing income and heave in the internet users, as per the latest reports. Amongst all e-tailing segment is the fastest growing. Making the biggest acquisition in e-tailing sector this report puts light on the Most recent case of American retail giant which has acquired Flipkart in a competition with Amazon. Furthermore, it divulges the viewpoint behind the huge acquisition and how this will contribute to the Indian economy progression. The strategy behind Walmart-Flipkart alliance is more than just taking on Amazon. For Walmart this alliance will make its entry into retail in India which was long awaited through e-commerce route by holding Flipkart′s hand. Following this acquisition, the industry has come under the lenses of lawmakers and regulators and the new draft e-commerce policy has been formulated which mentions stern regulations on online retail, including curbs on discounts, which has caused an uproar in the industry.
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