Walmart made an historic investment after the Indian online retailer’s CEO reset his company’s strategy
The 46-year-old former director of finance at a hedge fund took some risks. He fired senior managers, set more aggressive sales targets, boosted spending on promotions, and promised to dominate India’s festival season shopping.
The strategy worked, with an historic return on those risks: On May 9, Walmart Inc. made a $16 billion initial investment in Flipkart, the biggest ever by a foreign buyer in India. The deal helps cement Flipkart’s lead against Amazon and Alibaba in the world’s fastest-growing major economy. Online shopping in India is projected by Morgan Stanley to reach $200 billion within the next decade, compared with $30 billion now. “His relentless focus and his aggressive execution changed Flipkart’s fortunes,” says Anil Kumar, CEO of RedSeer Management Consulting Pvt. in Bengaluru. “He brought the edge that Flipkart was missing.”
Denne historien er fra 1 June, 2018-utgaven av Bloomberg Businessweek Middle East.
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Denne historien er fra 1 June, 2018-utgaven av Bloomberg Businessweek Middle East.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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