Lets briefly examine the good, bad and ugly parts of the deal, for various stakeholders
Good for
Flipkart employees, shareholders, and investors will get a good->great return from the deal
Walmart gets to play in e-commerce space in a high growth emerging country like India. If it works, it could try to replicate the model into other countries, even including US, over time.
Amazon gets a large competitor who has better capability to raise funds and help grow the market (by giving discounts for a number of years)
Bad because
Flipkart loses the opportunity to make it a really valuable company, like Alibaba or Amazon itself. Its investors could have been in for a higher return had it stayed independent
Walmart may not bring much value on the table, other than capital for a while. remember they lost out to Amazon in US, in their home ground, without even putting up a “credible” fight
(could become) Ugly if
Walmart Flipkart deal becomes a mess and eventually gets written off. (Walmart shareholders have already somewhat written it off as reflected in its share price)
In all scenarios, seems the real winner is going to be Amazon
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