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Does the Takeover of Flipkart By US Retail Giant Walmart Suggests An American Supremacy in Business Industry?

Walmart, world’s largest retail company is finally taking over an Indian e-commerce giant Flipkart suggests the story American supremacy in
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Walmart, world’s largest retail company is finally taking over an Indian e-commerce giant Flipkart suggests the story American supremacy in the business industry. Flipkart is a venture of Sachin and Binny Bansal, the two former colleagues of Amazon, that once posed a threat to the American Retail Giant, Walmart, and now the same Walmart has bought whooping 73% of the stake in the Flipkart becoming one of the major stakeholders of the biggest Indian E-commerce company. What is the reason behind the hostile takeover of the company by US Retail Giant, and why the co-founder of Flipkart Sachin Bansal has decided to quit the company? To know more read the complete story…


Walmart had faced a very bad days in the past following the rise of Online E-Commerce Stores such as Amazon and Flipkart, so much so that they had to suffer the loss of around $18 Billion due to the plunge in stock, that almost wiped out the company’s market value, finally the the biggest retail Giant of the world became so much vulnerable that event the small retail stores started giving serious threat to Walmart. Walmart had to close down many of its outlets across the US due to the huge success of online portals and the Amazon supposed to have played a major role in the fall of Walmart.

There was a time when Walmart enjoyed a unique position in selling Goods at big discounts but the rise of online retailers like Amazon and Flipkart made the Walmart loose the pricing war and there came the time when Walmart could not offer any further discounts to their customers.

The fall of Giants is not the new story at all, if you browse through the pages of the History, you will find endless stories of Fall of the Titans, and the story of Walmart is no different. One of the Giants in the retail industry started losing its ground after the entry E-Commerce players like Amazon and Flipkart.

The online stores, especially the Amazon, became one of the biggest threat to Walmart in its overseas expansion plan. The online e-commerce stores need not had to maintain the huge inventories like Walmart, who had to maintain the huge stock at all the time. In the online stores, anyone across the globe can buy anything depending on their preferences and that too from the comfort of their home which became the biggest challenge before the Walmart, and this made the fall of Walmart inevitable.     


Now coming back to the Flipkart story. The success story of Flipkart is nothing short to an extraordinary, from being a colleagues in Amazon to establishing India’s biggest e-commerce company, the duo Sachin and Binny Bansal had created the history in the Modern Indian Business Industry, and the Walmart just came with the bag full of money and took over the Indian company. Now the question here is, why did the Walmart take over Flipkart??


The Story behind the takeover of Flipkart by Walmart is very interesting. According to the sources, Walmart decided to invest whooping 16 Billion US Dollars in the Indian e-commerce company to combat with the another American Giant, and the arch-rivals Amazon. The report published in the Financial Express suggests that the Walmart has seen the huge growth taking place in the Indian e-commerce sector and they were aware that Amazon is taking the major chunk of business, and to give them an open challenge they decided to take over the Flipkart.

Meanwhile according to the reports, the Co-Founder of Flipkart, Sachin Bansal has decided to quit the company following the takeover by Walmart, although the confirmation of reports have not yet been done but the reason behind the resignation of Mr. Bansal is said to be the differences in the business ideology of both lead to his resignation. According to the report published in the Economic Times “People close to the development said Sachin was “not aligned with the strategy and operating structure that was being proposed post-Walmart coming on board”.

According to the experts in the Indian Business Industry, the business the takeover of the  Flipkart by the US retail giant suggests that there is no much scope for the Indian Entrepreneurs or Companies to capture the global market without the support of US Funding.

Following the takeover of Flipkart, the Walmart will now go into the direct war with another American Giant, Amazon and it will be too early to decide as who will win but one thing is sure that Indian consumer will surely benefit from this. What is your suggestion on this story?? Please share your views on this most important topic.    

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