ฝัง
- เผยแพร่เมื่อ 29 มิ.ย. 2023
- Sincere Apologies for the poor lighting in the video
What's the connection between US Retail Giants and Indian Pharma companies ?
Walmart and Ames, two retail giants that started around the same time, followed divergent paths after 1988. To understand their contrasting outcomes, let's delve into their respective journeys from 1970 to 1988 and analyze the factors that contributed to their diverging fortunes.
Walmart, founded in 1962 by Sam Walton, began its ascent to retail dominance during the 1970s and 1980s. Under Walton's visionary leadership, the company focused on providing customers with low prices and exceptional service. Walmart pioneered the concept of "everyday low prices," which resonated with consumers seeking affordability. The company's relentless commitment to efficiency, cost-cutting measures, and innovative distribution methods helped Walmart establish a competitive edge. It expanded rapidly, opening new stores across the United States and even venturing into international markets. By 1988, Walmart had firmly established itself as a formidable force in the retail industry, gaining a significant market share and a reputation for delivering value to its customers.
In contrast, Ames Department Stores, founded in 1772, faced a different fate. During the 1970s and 1980s, Ames experienced steady growth and success, expanding its store network and catering to the discount retail market. However, several factors contributed to the company's downfall. Ames faced intense competition from discount retailers like Walmart, Target, and Kmart. While these competitors were embracing innovation and efficiency, Ames struggled to keep pace with the changing retail landscape. Additionally, Ames made some ill-fated acquisitions, taking on debt and burdening itself with underperforming stores. These missteps, coupled with a lack of differentiation and failure to adapt to evolving consumer demands, weakened Ames' financial position.
After 1988, Walmart's success continued to soar while Ames faced a downward spiral. The divergent paths of the two companies can be attributed to several factors. Walmart remained focused on its core principles of offering low prices, operational efficiency, and customer-centric strategies. The company consistently invested in technology, supply chain optimization, and expanding its product range to meet evolving customer needs. By leveraging economies of scale and innovative practices, Walmart maintained a competitive advantage over its rivals.
Meanwhile, Ames struggled with mounting debt, a bloated store portfolio, and an inability to adapt to changing consumer preferences. The company failed to differentiate itself and lacked a clear value proposition compared to its competitors. As a result, Ames faced financial difficulties, eventually leading to its bankruptcy filing in 2001.
From 1988 to 1995, Walmart's success continued unabated as it expanded aggressively, improved its operations, and solidified its position as the largest retailer in the world. The company continued to refine its supply chain, embraced technology, and focused on customer experience. Walmart's relentless pursuit of efficiency, coupled with its ability to adapt to changing market dynamics, enabled it to thrive during this period.
In conclusion, the divergent paths of Walmart and Ames after 1988 can be attributed to several factors, including Walmart's unwavering commitment to its core principles, operational excellence, and customer-centric strategies. On the other hand, Ames' inability to adapt, ill-fated acquisitions, and financial challenges contributed to its eventual bankruptcy. The contrasting journeys of these two companies serve as a powerful lesson in the importance of strategic vision, adaptability, and prudent financial management in the retail industry.
Hi friends, I am Ajay Sharma. I have been an active investor and a serial entrepreneur living in Singapore. I am an alum of IIT (BHU) Varanasi and IIM Ahmedabad. I have worked in some of the leading global corporates and am passionate about startups.
To know more about me, watch - • Who am I? #AjayFY
To connect with me, follow me on my socials -
Instagram - / ajayfy.sharma
LinkedIn - / ajayfy-sharma
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#ajayfy #acquisitions #investing
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Great Content + Great Preparation + Great Presentation = *Great Learning*
cannot have better weekend than watching this video
Agree d
Finest channel on whole TH-cam for stock market
Very interesting Sir
Thank you
Owesome Ajay Sir,❤
Brilliant stuff
Thanks sir, for this mental model. I'm adding this into my arsenal. looking forward to many more such videos!
Unique + great content
Yet another wow to Ajay, excellent use cases
Love the way you teach...!! Thanks so much for your effort.
Nice comparision
Excellent learning
Amazing video. Totally different league.
It depict the super brilliant way of his thinking ❤
Superb insights
Great learning sir❤❤❤🙏
THANKS YOU SIR...EXCELENT ANALYSIS.....
Great Learning😍😍😍
Thanks sir for sharing powerful concept and knowledge with us. 🙏🙏
Very well taught and learnt...
Great sir ❤❤❤
This is absolutely pure gold!
great sir
very good knowledge sir, thank u for learning from u.
Happy gurupurnima sir. Thank you for all ur videos.
Thank you. Very good analysis
Keep sharing such kind of wisdom sir. Thanks...
Like the concept ❤
Sir, no apologies for lighting. Your Knowledge & Insight is spreading its BRILLIANCE.
New to your channel, but already a huge Fan.
Great learning. To look at US mkt parallels. Keep doing such conceptual videos.
Great learning sir thank you very much 🙏
Very informative video thnx sir sharing your valuable knowledge with us
good analysis✌
Microsoft, Google and Apple did a lot acquisitions and did better than ever , so it's depends on implementation of each
You are great
very unique very intelligent approach
👏👏👏👏the way you explain sir it's amazing pls keep this good work going ...🙏🙏
Best knowledge in fundamental analysis of companies 👍🏽
Very good topic..its true when tata took land-rover and metropolis took high tech lab. Same patterns happened in stock price.
Thank you 🙏
Great lessons sir.
Thanks sir this kind of research provide to retail investors
Thank you sir
Sir you are just showing a tip of the iceberg....
Thanks very much for building a strong mindset.
God bless you 🙏
May you live long.
Actually the person like you are making this world a better place to live.
Thanks 😊 a lot a lot and a lot
Thanks sir ji 😊❤❤
The content is incomparable to any precious thing out there🙏. Thank you for your knowledge and time sir.
Happy Guru purnima 🙏sir.
Sir Can u make a video on how to identify the next big sector and how do you analyse that, as retailers we know Ai, EV, etc could be next big sectors but at the same time there are many sector which can give good return such as bank, finance(short run) how do institutions analyse this sir
Ajay bhai
Bahot badhia
Thank you
GK from USA
Where is the US are you based ?
गुरू को कोटिः कोटिः नमन
Sir,
Pls start your course , I am waiting
सर जी कोटिः कोटिः प्रणाम
Sir a video on this mega merger of HDFC and HDFC Bank will also be amazing.
Recent acquisitions of Reliance in media, telecom etc moves them away from their core expertise?
Sir reliance Or adani dono me aisa hi ho raha hain
Even hp acquisition of UK based automation firm in software and other
Sir reliance retail may be same condition
In our locality 5 reliance retail outlets but footfall is very low
👍👍👏👏
Sir Varun beverages franchise of Pepsico US based firm. Can it get the same growth since penetration of beverages and carbonated drinks is still very less as compared to other developed countries.
The stock has already been 10x in the last 7 years.
Waiting for your valuable suggestions
Thanks 😊.
ABFRL could also be a point in case.
Happy Guru Purnima
Sir reliance pr bhi esa ho sakta?
👍
Everything is time cycles
MDAG/ ADAG. Both seperated same day
Younger one all best Business
ITC was / is best Co in India
Since so many years did not perform
Time Cycles Sirji
❤❤❤🙏🙏
Ajay ji 🙏 Har Har Mahadev 🙏
Thanks sir
Thanks sir