In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested course of action logically follow (s) for pursuing. Statement: Walmart has been eyeing Indian markets for years now – and its $16 billion worth majority stake in Flipkart has finally given it the opportunity it was looking for to bring its retail business to India. If Walmart were to build its own e-commerce network in the large and diverse Indian market, it would undoubtedly face many challenges. Since, Walmart isn’t an established e-commerce player, the option of growing by way of acquiring is attractive, allowing Walmart to profit from Flipkart’s presence and build on efficiency and scale in e-commerce. Courses of action: I. Walmart’s leverage will allow the company to globally source cheap resources and sell their products into India at deep discounts. II. To compete with Walmart at competitive prices, sellers will have to operate at the same scale, which will be beyond the reach reach of many. III. Walmart presently has a very small presence in India and Flipkart’s market share while significant, is not deemed large enough to cause concern to competition.
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested course of action logically follow (s) for pursuing. Statement: Walmart has been eyeing Indian markets for years now – and its $16 billion worth majority stake in Flipkart has finally given it the opportunity it was looking for to bring its retail business to India. If Walmart were to build its own e-commerce network in the large and diverse Indian market, it would undoubtedly face many challenges. Since, Walmart isn’t an established e-commerce player, the option of growing by way of acquiring is attractive, allowing Walmart to profit from Flipkart’s presence and build on efficiency and scale in e-commerce. Courses of action: I. Walmart’s leverage will allow the company to globally source cheap resources and sell their products into India at deep discounts. II. To compete with Walmart at competitive prices, sellers will have to operate at the same scale, which will be beyond the reach reach of many. III. Walmart presently has a very small presence in India and Flipkart’s market share while significant, is not deemed large enough to cause concern to competition. Correct Answer None follows
The given statement is regarding the context of Walmart’s acquisition of Flipkart in order to expand its reach in the Indian market. Because of the fact that Walmart isn’t an established e-commerce player, the option of growing by way of acquiring is attractive, allowing Walmart to profit from Flipkart’s presence and build on efficiency and scale in e-commerce.
A course of action is something that needs to be done considering the present scenario in mind.
Thus, an appropriate course of action can be the action that brings out the actions that Walmart needs to do in order to achieve the desired result.
From the courses of actions discussed,
Course of action (I) is the outcome of Walmart’s leverage and is not a course of action.
Course of action (II) is a course of action followed by sellers and not Walmart, since, it is out of scope, it can also be rejected.
Course of action (III) states general information and does not suggest any appropriate course of action. Thus, it can also be rejected.
As none of the course of action is relevant, the correct answer choice is option 3.