By: Corinne Abrams, Sarah Nassauer, and Douglas MacMillan via The Wall Street Journal
Walmart is investing a 75% stake in Flipkart, India's biggest e-commerce company. Alphabet, Google's parent, will also invest as part of the deal. Acquiring Flipkart is a defensive move by Walmart to prevent Amazon from acquiring it. Online buying is a small part of retail in India now, but it is expected to grow, and Walmart wants a piece of that potential. Regulations in India limit retailers' ability to enter with traditional stores, but online sales allow Walmart to sell in India because it acts as a marketplace for which Walmart provides technical and logistical support.
1. How would investment in Flipkart help Walmart to compete with Amazon?
2. What is a "defensive" investment?
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