...| 2013 | | | [Case 6: Walmart's Global Strategy] | 604.800 International and Comparative Management | 1. Case summary 2006 was one of the years that marked the biggest retrenchment in Wal-Mart’s history. It was the year that Wal-Mart had decided to exit the German market after trying to penetrate it for about eight years. The company undertook its international expansion in the early 1990s to rejuvenate sales and growth. However, on July 30th, 2006, Wal-Mart had announced that it was selling its operations to German retailer Metro. In May of same year, Wal-Mart had also announced that it was selling its 16 stores in South Korea, admitting another internationalization failure. What went wrong with Germany? Wal-Mart had underestimated its German competitors, the power of German shoppers, cultural differences and the power of labor unions in Europe. The company did not expect that these differences would impede its ability to apply in Germany what worked so well in the United States. German competitors offered very low prices, while German shoppers had shown how demanding they can be and that they buy products predominantly based on price; even if that meant going to a few different retail stores during their shopping trip. German shoppers were also not accustomed to workers putting their groceries in shopping bag. Moreover, German regulations limited Wal-Mart’s ability to offer extended weekend hours and sell merchandise below cost. Strong labor unions limited...
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...References Wikipedia. 2013. Target market. [online] Available at: http://en.wikipedia.org/wiki/Target_market [Accessed: 27 Nov 2013 Anh, P. and Anh, P. 2013. Thống kê số người sử dụng smartphone tại Việt Nam 8/2013. [online] Available at: http://seotopten.net/thong-ke-so-nguoi-su-dung-smartphone-tai-viet-nam-82013/ [Accessed: 28 Nov 2013]. Customer Delight Service. 2013. [e-book] http://www.samsung.com/us/aboutsamsung/sustainability/productservices/download/Customer_delight_service.pdf [Accessed: 27 Nov 2013]. Dialaphone.co.uk. 2013. Samsung Galaxy S IV: How it Stands | Mobile Phone Reviews. [online] Available at: http://www.dialaphone.co.uk/blog/2013/03/15/samsung-galaxy-s4-as-it-stands/ [Accessed: 27 Nov 2013]. Education-Portal.com. 2013. Business Buyers: New Buy, Modified Rebuy, Straight Rebuy - Free Principles of Marketing Video. [online] Available at: http://education-portal.com/academy/lesson/business-buyers-new-buy-modified-rebuy-straight-rebuy.html#lesson [Accessed: 28 Nov 2013]. Education-Portal.com. 2013. What Is Consumer Buying Behavior? - Definition, Types & Quiz | Education Portal. [online] Available at: http://education-portal.com/academy/lesson/what-is-consumer-buying-behavior-definition-types-quiz.html#lesson [Accessed: 28 Nov 2013]. Facebook. 2013. Samsung Việt Nam. [online] Available at: https://www.facebook.com/pages/Samsung-Vi%E1%BB%87t-Nam/391699070842477?id=391699070842477&sk=info [Accessed: 28 Nov 2013]. Fullyc.com. 2013. This Guy Asked Samsung...
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...like to save and have a better life”(Walton S.) Walmart’s company culture includes a list of values and beliefs it establishes through its management and employee relations. The company’s marketing efforts are to establish awareness that they are the price leaders in their market. In recent times, the company has focus on becoming involved more in local communities by charity and service. With the general instability of the global economy, corporations like to play it safe; Walmart is an example of a multinational which is making a bold move. Acquiring South African grocery chain Massmart offered Walmart a safe foothold to prepare for the next step, which is continental expansion. South Africa is arguably the most westernized country in Africa. Western companies in general perceive it as easier to do business there than in other African nations. II. SWOT ANALYSIS The SWOT analysis of Walmart shows that the company can have higher long-term success potential through aggressive global expansion, especially in retail markets in developing countries. Strengths: Walmart’s strengths are all related to the size of its business. These strengths enable the company to withstand threats despite its weaknesses. Walmart’s strengths for further global growth are: • Huge and loyal customer base • Global organizational size • Strong employee base • Strong financial position • Low price strategy, special buy and roll back strategy • Power brand in retail industry • Core competencies...
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...Running head: GLOBAL HUMAN RESOURCES 1 Global Human Resources: How to create a successful global presence to insure the success of an organization in meeting its goals and mission Student Name University Name Class Name Professor Name Date GLOBAL HUMAN RESOURCES 2 Global Human Resources: How to create a successful global presence to insure the success of an organization in meeting its goals and mission Walmart achieved great success with their “Every Day Low Prices” strategy. Through supplier negotiations, Walmart has enjoyed high profits resulting in their ability to maintain low operational costs and it turn, pass that savings on to their customers. While the company’s success was largely attributed to Walmart’s ability to maintain low prices and provide exceptional customer service, they also depended on their revolutionary internal distribution process (Farhoomand, 2006). At the time of their opening in Shenzhen, the biggest challenge Walmart faces were the 700 chain store companies that were already operating in China. Until 2005 when China officially lifted distribution restrictions for foreign companies, Walmart had been forced to rely on Chinese suppliers to outfit their stores. Brief analysis Walmart’s US supply chain includes their own distribution warehouses that are strategically located within a one-day drive of the stores it served, a Walmart-owned trucking fleet that was solely responsible for the physical distribution of inventory, and a robust information...
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...Since San Walton opened his first store in 1962, Walmart has grown into a global retailer with more than 4,000 store in the United States and more than 6,000 internationally. Walmart is comprised of three business segments, Walmart US, Walmart International and Sam’s Club. Walmart Global eCommerce works across all three segments. Walmart’s mission statement “We save people money so they can live better”, is not indicative of where its strategic focus areas are, but it does sound good for the average customer who has a limited budget. This mission statement leads directly into Walmart Global eCommerce goals which include combining online, social innovations with physical stores to give consumers “anywhere, anytime shopping experience” in addition to its organizational sustainability goal of creating zero waste, using only sustainable energy and selling products that sustain the environment which is important to all of Walmart’s segments including eCommerce. Walmart’s overall objective is to deliver shareholder value by increasing earnings per share, returns and maintaining strong stable returns on investment. According to Walmart CEO, Mike Duke, Walmart’s strategic focus areas are: •Making sure the company has the best retail talent at every level of the organization by recruiting, developing and retaining the best associates; •Delivering on the productivity loop that enables Walmart to operate for less so the company can drive prices even lower for its customers ...
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...[;’p// Walmart Case Study: Half a Century of Supply Chain Management SCM 607 Dr. John Wu March 15, 2014 Table of Contents INTRODUCTION 4 BACKGROUND OF THE COMPANY 4 GOALS AND OBJECTIVES 5 KEY ISSUES 6 EXTERNAL ANALYSIS 7 Economy 8 Customer Behavior 8 Technology 8 Politics & Legal Aspects 8 INTERNAL ANALYSIS 9 Company Culture 9 Operations 9 Purchasing & Suppliers 10 Inventory 10 Logistics 10 SWOT ANALYSIS 11 Strengths 11 Procurement 11 Distribution 12 Store Network 12 Information Systems 13 Weaknesses 14 Procurement 14 Store Network 14 Human Resources 14 Focusing on the Supply Chain 14 Opportunities 15 Focusing on the Supply Chain 15 New Initiatives and a Reorganization 15 Threats 16 Human Resources 16 DECISIONS 17 CONCLUSION 18 EXHIBIT 3 19 EXHIBIT 3 (continued) 20 EXHIBIT 3 (continued) 21 EXHIBIT 5 22 REFERENCES 23 Walmart Case Study: Half a Century of Supply Chain Management INTRODUCTION Walmart dominates the retailing industry in terms of its sales revenue, its customer base, and its ability to drive down costs and deliver good value to its customers. After all, the world’s largest corporation, employing 1.8 million associates worldwide, takes pride in having received numerous accolades for its ability to continuously improve efficiency in the supply chain while meeting its corporate mandate of offering customers everyday low prices. Walmart demonstrates how a physical product retailer...
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...Walmart is a United States based multinational retail store. Walmart Thrive by dominating the retail market and providing broad quantity of product at a low cost. Walmart’s has repeatedly proved its successful company strategy in many occasions. This Global retail giant have burgeoned almost in all countries where it expanded with very few exceptions. To reinforce its global expansion process Walmart acquired 51% of Massmart, South Africa second biggest retailer. Although the merger of this two large firms unfolds Walmart’s way into one of the world’s biggest potential market it won’t be simple. Poor legal system and weak securities, cultural and infrastructure barriers, financials, rivals criticism, resistance from local group and government will hinder the merger process. Walmart needs to be prepared to face these challenges and develop a strategy. In order to deal with the challenges Walmart should: 1. Learn from previous mistakes in North Korea and Germany. 2. Make use of high GDP growth in Africa and rising middle class. 3. Use Massmart successful network. 4. Create a positive Brand and company name. 5. Do what it is best at “dominate retail market” * Section 2: External environment: Walmart and Massmart are a big part of global discount retail industry. Walmart is one of the world’s biggest retail industry operating in 14 different nations apart from United States with yearly revenue...
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...Walmart’s Global Challenge, November 2014 Executive Summary Walmart Stores, Inc. is the world's largest retailer whose mission is “to help people around the world save money and live better -- anytime and anywhere -- in retail stores, online and through their mobile devices” (Corporate Walmart2, 2014, p.1). Samuel Walton founded Walmart in 1962 as a small chain of stores in rural towns and today Walmart is a multi-national retail corporation with “11,100 stores under 71 banners in 27 countries and e-commerce websites in 11 countries” (Corporate Walmart2, 2014, p.3). Walmart Stores topped Fortune Magazine’s “Fortune 500” list for 2014. “For fiscal year 2014, Walmart’s net sales totaled $473.1 billion, up 1.6% from the year-earlier period” (Fortune, 2014, p.1). Walmart is a publically traded company, with the second and third generation Walton family owning 51% of Walmart’s shares via a family holding company called Walton Enterprises LLC (Yahoo Finance, 2014, p.1). Walmart has enjoyed unprecedented growth in the span of 52 years, even in the face of negative publicity and threats from competitors like Family Dollar and Amazon. Walmart’s CEO, Doug McMillon, has laid out strategies to reduce their reliance on physical stores as they move towards expanding the e-commerce aspect of their company and on improving their overseas expansion plans. His four-part growth strategy provides the framework to enable a “company prepared to win on four key customer dimensions – price...
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...The history of Walmart was founded in 1962 by Sam Walton in Rogers, Ark. It is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. They focus on making a difference in the lives of their customers, and helping customers and communities save money and live better. In 1969, the company officially incorporated as Walmart Stores, Inc. Walmart started its public trade on the New York Stock Exchange in 1972. With the continued rapid growth, Walmart was operating in 11 states with 276 stores by the end of 70’s decade. In the 1980s, the first Sam's Club opened, serving small businesses and individuals, and the first Walmart Supercenter opened, combining a supermarket with general merchandise. In the late 1980s and early 1990s the company rose from a regional to national giant, Walmart was the number-one retailer in the nation. In 2000s, Walmart focus on offering customers a seamless shopping experience, whether they are online, in a store or on a mobile device. Also, during these times, Walmart put some effort in implement several environmental measures to increase energy efficiency. Today, the company has grown to be the world’s largest and arguably, the most emulated retailer. The social cultural segment is concerned with a society’s attitudes and cultural values. A major social cultural trend is the continued growth of suburban communities. The increasing number of people living in the suburbs has a number of effects...
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...Environment D. Entry Strategies 4. Walmart and the Mexican Marketplace……………………………..………….10 A. Country Competitiveness B. Cultural Environment C. Political and Legal Environment D. Entry Strategies 5. Summary Comparison of Canadian and Mexican Markets…………………….18 6. Recommendation…………………………………………………………………….19 7. References…………………………………………………………………………...21 1. Executive Summary This report closely examines the operations of the world's largest retailer, Walmart, in Canada and Mexico. Assessments of market conditions in both countries have been conducted in terms of country competitiveness, cultural, political and legal environments and the strategies used by Walmart upon entry. Tying into these international business factors, specific aspects of international economic integration, monetary systems, social responsibility and corruption have also been reviewed. While being part of one continent and a common trade bloc (NAFTA, the North American Free Trade Agreement), considerable differences between Canada and Mexico are apparent. These differences are individually analyzed on the following pages. Inevitably, they are best understood in the context of the two countries' long-standing economic and cultural ties to Walmart's home country, the United States of America. Walmart gained enormous success under its current low-price business model in both Canada and Mexico; therefore it is recommended that Walmart maintain its current strategy of delivering products...
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...WALMART SUCCESS IN MEXICO, CANADA AND CHINA: GLOBAL EXPANSION, STRATEGIES, ENTRY MODES, THREATS AND OPPORTUNITIES Lee Yee Mun B1000922 Help College Of Arts and Technology Bachelor of Science in Collaboration with Southern New Hampshire University, USA lemon_0611@hotmail.com Rashad Yazdanifard Faculty of Management, Multimedia University, Cyberjaya, Malaysia. rashadyazdanifard@yahoo.com 1 ABSTRACT Global expansion has been gaining a lot of attention. There are many important factors to be considered in the decision-making process such as business strategies, entry modes, and threats and opportunities in the markets. Appropriate strategies will minimize the risk of failure in international markets. The right business strategies and entry modes employed will increase the firm’s chances of success and influence the future of the retailer. Key words: global expansion, business strategies, entry modes, threats, opportunities, Walmart 1. Introduction The internalization of the retail industry has been researched widely, and majority of these studies have described the motivations and scales for international expansion by retailers (Akehurst & Alexander, 1995; Williams, 1992). Many models of internalization explains the sequence of foreign expansion, showing that companies who go international will do better in foreign markets that are similar to their domestic markets. This was why Walmart chose to enter the markets of Canada and Mexico (Johanson...
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... It has achieved great success in areas like Mexico and Canada; however it has also seen failures in other areas like Germany and Hong Kong. This paper will discuss a brief history of Walmart’s global expansions and the strategies it chose to enter these markets. It will answer the following specific questions: When did Walmart enter the global expansion? What international markets did Walmart enter? What cultural challenges has Walmart faced? How did Walmart overcome these challenges? Where future expansions and opportunities are possible? To answer these questions, this paper will have four basic sections: A brief history of Walmart’s global expansion, what was their strategy with each expansion, cultural differences they faced, and where is Walmart going in the future. This paper will attempt to examine the strategies of its global expansion and how it used the challenges to continue success in future expansions. Walmart is the most well-known and largest retailer in the world today; with sales worth more than $200 billion, $35 billion of that from Walmart’s International Division. The company grew incredibly fast both in the United States and abroad. By tweaking entry modes, and studying the cultural differences and local threats, the core business strategies Walmart chose to build its business on in America would prove a great success in other countries as well. According to the website of the Walmart Corporation, Walmart saw life originally...
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...Context: 1. Introduction 2 2. Background of Wal-Mart stores Inc. 3 3. Retail organization internatinalization expension 4 4. International Expansion of Wal-Mart in Maxico,china and canada 5 5. Comparison of Entry Modes 6 6. comparison of Opportunities 7 7. Final touch 8 8. Conclusion 9 9.Bibliography 10 1. Introduction: Being present and having to enter foreign markets is for many companies natural, while for other it is a new challenge that they have to face. This challenge, known as market entry, consists of three major decisions: where to enter, when to enter and how to enter different markets. Some companies are forced to internationalize in the early stages of their life due to small saturated home markets, while other companies choose to go abroad because of the great opportunities new markets might bring (Peng, 2006). Once deciding to go abroad and choosing the target market and timing, companies' need to consider the choice of entry modes. Generally, to choose international firm there are six different entry modes: exporting, turnkey projects, licensing, franchising, joint ventures, wholly owned subsidiary (Hill, 2004). Each entry mode its distinctive characteristics (see, e.g., Hill, 2004; Hill, et al, 1990; Hill and kim, 1988; Anderson and Gatignon, 1986; Madhok, 1997; Brouthers and Brouthers, 2000; Bishop 2006. Selecting a suitable entry mode is a difficult decision for firms interested in entering a foreign market (Agarwal and Ramaswami, 1992). Sometimes...
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...Amazon 8 2. Strategic Alliances 9 2.1 Walmart 9 2.2 Amazon 10 3. Technologies employed in the SC Network 11 3.1 Walmart 11 3.2 amazon 13 4. Challenges and risks 14 4.1 Walmart 14 4.2 Amazon 15 5. Comparison of sustainable strategies in Supply Chains 16 conclusion 17 References: 18 Appendices: 19 Section A: 19 Section B: 19 Section C: 20 Introduction: Executive summary: This report provides an analysis and evaluation of the current supply chain strategies employed by two leading retail corporates, Walmart and Amazon. The report draws attention to the following aspects; supply chain management practices, strategic alliances, Information Technology, challenges and risks,finally sustainability in the supply chain. Method of the analysis includes reviewing a collection academic journals from different databases, analysing company’s annual reports and viewing news article for new trends and announcements about the company. The finding of this paper shows how both companies apply different supply chain models to support their business strategy but yet some similarities appear especially in technology aspect of the supply chain. Moreover common risks and challenges face both companies when it comes to global expansion....
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...Q1. Value proposition Walmart’s value proposition is based on offering Everyday Low Price. This is the core of Walmart’s Business Model, and the rest of the key features of Walmart’s Business Model are aligned to keep the everyday low price. This proposition implies that the customers do not need to wait for sales to have the best deal possible. Besides, not only the sells convenience is associated by providing the wide range of products and services to choose from, but also with one-stop is possible to make all the shopping needed, from groceries to pharmacy. Walmart’ customers save time and money Distribution channel To deliver its value proposition Walmart communicates with and reaches its customer segments with its distribution channels which are owned and direct, and brings higher margin. Walmart also is corresponding with its customers mainly through mass media and other ways which have a low cost, such as internet. Customer relationships Walmart establishes a customer relationship is based on self-service and automated and towards co-creation of some products once it is possible. Walmart tends to reach to the mass market toward mass customisation. Walmart’s customers can be divided into three groups: “brand aspirations”, people with low incomes who are obsessed with brand; “price-sensitive effluents” wealthier shoppers who love deals; and finally “value-price shoppers” who like low prices and cannot afford much more Strong buyer-supplier relationship Walmart...
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