Sociology

An article by the BBC in 2013 outlined the conflict between local Indian dairy farmers and Wal-Mart, after the company attempted to launch their own dairy farm just outside of the town of Daund. Wal-Mart’s plan was to purchase local cattle and use modern farming techniques to produce more efficient, higher quality dairy products. This plan threatened the livelihood of local dairy farmers, who saw their prices drop by 30 percent after Wal-Mart entered the market. My analysis of the situation is that Wal-Mart’s decision to enter the Indian market without an understanding of the culture, landscape, and economy of the local area was myopic and counterproductive. By failing to consult with local representatives, Wal-Mart created a situation in which they were unfairly undermining the local economy, while attempting to capitalize on the more efficient methods of western-style farming. This situation could have been prevented had Wal-Mart done more research on the Indian dairy market before entering it. By partnering with local representatives to develop comprehensive strategies for collaboration, Wal-Mart could have agreed on critical points such as maximum and minimum prices for dairy products, diversification of products, and investment in local farming methods. Furthermore, by investing in local infrastructure, Wal-Mart could have provided an additional boost to the local economy.