Case Analysis of Walmart and Flipkart M&A

Posted: 16 Nov 2020

See all articles by Shashi Pingolia

Shashi Pingolia

Delhi School of Economics; Purdue University

Date Written: September 28, 2020

Abstract

The main objective of this case analysis is to provide a systematic overview of mergers and acquisition process in the context of Walmart -Flipkart deal in which the retail giant, Walmart acquired 77% stake for $ 16 billion in Flipkart, an e-commerce company in India. The deal is considered the biggest acquisition of an e-commerce company. For the ease of explanation, the entire case analysis is arranged into five major sections beginning with a brief overview of general objectives of M&A and its relevance in the context of Walmart-Flipkart M&A deal. The main purpose of the acquisition is to gain from the synergies of two retail giants with different competitive advantages in different countries. Flipkart has its innovative and agile business approach, entrepreneurial spirit, extensive supply chain network in India and Walmart has the experience, stability and a reason to tap early the booming e-commerce market in India. Lack of ‘soft’ due diligence, retaining of key talent, Creation of comprehensive compensation strategy and employee benefits program, Integration of different work culture, and communication of change processes etc are identified as critical HR issues that might impede the success of Walmart-Flipkart deal, and are discussed in detail in the second section of the analysis. For simplification, the key roles expected by HR of Walmart are enlisted on the basis to 3 main stages of M&A. i.e. Pre-combination, combination planning & signing of agreement, and post combination and implementation of the deal. In the fourth section, an action plan is recommended for resolving the HR issues identified at the beginning of the analysis. In the last section, a one-year action plan including 5 key HR strategies, is prepared for facilitating the end goals of M&A between Walmart & Flipkart.

Keywords: Walmart, Flipkart, HR, Merger and Acquisition

Suggested Citation

Pingolia, Shashi, Case Analysis of Walmart and Flipkart M&A (September 28, 2020). Available at SSRN: https://ssrn.com/abstract=3701098

Shashi Pingolia (Contact Author)

Delhi School of Economics ( email )

University Road
Kirti Nagar
Delhi, DE New Delhi 110 007
India

Purdue University ( email )

1310 Krannert Building
West Lafayette, IN 47907-1310
United States

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