Wall Mart

In: Business and Management

Submitted By nadeem18
Words 11842
Pages 48
HKU590

ALI FARHOOMAND

WAL-MART STORES: “EVERY DAY LOW PRICES” IN CHINA
China “is the one place in the world where you could replicate Wal-Mart’s success in the U.S.”
- David Glass, former CEO of Wal-Mart Stores1

The beginning of spring 2005 must have left a mark on the corporate strategy of every retailer vying for a share in China, the world’s most populous consumer market. From this time on, foreign retailers were no longer constrained to specified regions, forced to enter into joint ventures with local partners, or hampered by a lack of distribution rights—China’s retail market had thawed and was laid open to all. To the world’s largest retailer, Wal-Mart Stores, China had long been a strategic imperative. On one hand, nearly US$20 billion worth of goods made in China were now travelling through Wal-Mart’s global supply chain to drive its costs down; on the other hand, China’s vast size in land and population, an emerging middle class optimistic and eager to spend, and consumers’ relentless pursuit of value all seemed to suggest that China was an ideal ground into which Wal-Mart could successfully transport its business model centring around the strategy of “Every Day Low Prices” (EDLP). However, in the midst of proclamations of market entry or ambitious expansion plans by many major world retailers came the news that Cassian Chueng, the president of Wal-Mart China, had resigned in March 2005 to spend more time with his family. Changing the commander-in-chief the night before a major battle was, to many, no different from a public admission of the failure to live up to the retail giant’s ambition in China. Indeed, nine years after its market entry in 1996, Wal-Mart ranked only twentieth in sales among all chain stores in China, compared to the fifth place taken by its world rival, the French Carrefour, which had entered the market at more or less the…...

Similar Documents

Wall Mart Strategy

...Case Analysis – Wal-Mart Wal-Mart was set up in 1962 in the US state of Arkansas by Sam Walton. Before opening Wal-Mart, Walton operated a franchise of the Ben Franklin variety store in Newport. His retail ventures proved quite successful, and most of the success came from his innovative business ideas. He3 bought products in bulk directly from manufacturers and offered them at lower prices to customers, which allowed him to gain a significant advantage over the competition. Walton also kept the stores open for longer hours than its competitors. Wal-Mart’s USP was providing a large variety of merchandise at low pries. Walton’s main focus was on establishing new stores in small towns. In 1977 Wal-Mart made its first acquisition by buying 16 Mohr value stores in Michigan and Illinois. He later purchased a shoe company and set up pharmacy and jewelry divisions and auto service centers. By 1980, Wal-Mart had 276 stores with annual sales of $1.4 billion and by 1984 the number of stores had increased to 640 with annual sales of $4.5 billon. In 1999 Wal-Mart became the largest private employer in the US. By 2005, Wal-Mart had presence in Argentina, brazil, canaada,china and 15 other countries including the UK. In November 2006, Wal-Mart announced that it had tied up with Bharti Enterprises to make its long expected foray into the Indian retail sector. By then Wal-Mart has already become the biggest retail chain and the second largest company in the world in terms......

Words: 967 - Pages: 4

Wal-Mart

...In the retail industry, the failure of Wal-Mart in South Korea is a typical example. After eight years of disappointing sales in South Korea, in 2005, the America’s largest retailer, Wal-Mart, announced to leave the country. A year later, the company quietly transferred all 16 of its South Korean stores to Shinsegae Group, a domestic retailer, for $882 million and officially withdrew from Kimchi (Olsen, 2006). While Wal-Mart has had impressive success in other foreign markets such as Canada, the United Kingdom, and Mexico, Wal-Mart experienced a shameful failure in South Korea, which is mainly because of its neglect in cultural and administrative distances. Since the early 1990s, Wal-Mart has promoted its international expansion strategy to spread its power through the world. From the first appearance in the international market in 1991, the number of Wal-Mart stores outside of the United States increased to 1,587 in 2005, and reached to 5, 651 in January 2012 (Wal-Mart, 2012). In the late 1990s, South Korea, one of the world’s largest economies with a very large-growing retail sector, was absolutely one of Wal-Mart’s targets. In1998, Wal-Mart officially entered the South Korean market with a big hope to continue its successful dominance in the world’s retail industry. The company acquired four domestic retail stores, Makro and quickly opened up six new Wal-Mart stores. Joe Hatfield, Wal-Mart’s Asia CEO confidently stated: “Wal-Mart is committed to the Korean market for......

Words: 2674 - Pages: 11

Wall Mart Ratio Analysis

...**************** Аналіз фінансового стану «Wal–Mart Store Inc» (2010-2012 р.р.) Виконав студент курсу MBA 2013-2015 (вечірня) *****************88 2013 Про компанію Wal-Mart Stores, Inc ("Walmart") управляє роздрібними магазинів в різних форматах по всьому світу і прагне зекономити людям гроші, щоб вони могли жити краще. Ми заробляємо довіру наших клієнтів щодня, надаючи широкий асортимент якість товарів і послуг з щоденним низькими цінами. Нашва філософія ціноутворення дає клієнтам впевненість, що наші ціни не змінюватимуься під частими рекламної діяльності. Наш фінансовий рік закінчується 31 січня для нашої США ("US") і Канадські діяльностей. Наш бізнес носить сезонний характер певною мірою із-за різних національних та релігійних свята, а також різних кліматичних умов. Історично склалося, що наш пік продажів і операційного прибутку припадає на фінансовий квартал, що закінчується 31 січня. Ми працюємо в умовах жорсткої конкуренції роздрібної торгівлі у всіх країн ношої присутності. В своїй діяльності ми керуємося трьома пріоритатами для підвищення вартості компанії: зростання, правильне використання запозичених коштів та забезбечення прибутковості. Пріоритет зростання фокусується на підвищенні продажів. Запозичені кошти використовуються для збільшення операційного прибутку більш швидкими темпами, ніж зростання чистого обсягу продажів зростаючих......

Words: 260 - Pages: 2

Wal Mart

...Management at wal mart Submitted to: Prof Mhihr Das Submitted By: Kunal Bhatia (M00116, Hitesh Bambhaniya (M00126), Saloni Umraniya (M00128), Sagar Nathani (M00134) 3/6/2014   Table of Contents Introduction 3 Value Chain System of wall mart 4 Porter 5 force 4 SWOT 5 Competitors 6 Suppliers 8 Back haul of wall mart 9 Role of HR 10 Role of RFID 11 Strategy 12 Strategy of other companies 13 Conclution 16 Introduction The retail industry is dominated by few retail giants, with Wal-Mart competing in several retail categories. Wal-Mart competes against Kmart and Target in the general merchandise retailing; against Costco in the warehouse club segment; and against Kroger, Albertson’s and Safeway in the supermarket retailing. Competition among retailers centers on pricing, store location, variations in store format and merchandise mix, store size, shopping atmosphere, and image with shoppers. Further analysis provided by the following figure diagnoses the competitive environment of the retail industry. As a fact, Wal-Mart is considered as the world’s largest retailer nationwide that has been guided by its founder Sam Walton’s passion toward customer satisfaction, and his beliefs in excellence, as well as his philosophy in lowering his prices that has been proven with his famous slogan “everyday low prices.”1Visible outstanding success has required a lot of effort, strategies, dedication, and wide consideration. Such as......

Words: 3334 - Pages: 14

Wall Mart

..................................................... 4 5. Mission of Wal-Mart.................................................................................. 4 6. Objectives of Wal-Mart.............................................................................. 4 7. SWOT analysis of Wal-Mart...................................................................... 4-5 8. Application of Porter’s five forces in Wal-Mart............................................ 6-7 9. Wal-Mart Focus on Low-cost..................................................................... 8 10. Conclusion................................................................................................ 8 11. Recommendation....................................................................................... 9 12. References................................................................................................ 10-11 Executive Summary: In contemporary business world, Strategy plays an important role in every sector. A good strategy gives the company a competitive edge over the competitors. This report will emphasize on a business organisation called Wal-Mart Stores Inc. which make superior performance over the last few years. Wal-Mart is the number one and fast growing retail store of the world and currently operating 27 countries worldwide. In this report we will look at Wal-Mart Mission, Objectives, Competitive Strategy under the case of SWOT analysis......

Words: 2259 - Pages: 10

Caso de Estudio: Sears. Roebuck and Co. vs. Wall-Mart Stores, Inc.

...Caso de estudio: Sears. Roebuck and Co. vs. Wall-Mart Stores, Inc. Por Daniel Escobillana, Christl Hepner y Caterina Ojeda 1- ¿Cómo difieren las estrategias de ventas al por menor de Sears y Wal-Mart? A pesar de ser dos compañías que comparten el mismo rubro, y compiten de manera similar en cuanto a sus modelos de negocios y estrategias, existen dos diferencias principales en el approach que tienen ambas en la forma de implementar su estrategia. La primera, en términos de valor agregado y diferenciación, y la segunda es en términos del modo de pago. En cuanto a qué ofrece cada tienda en cuanto a valor agregado a sus clientes, vemos que la estrategia de Walmart es mantener los costos de producción lo más bajos posibles, para de la misma manera, mantener los precios de ventas menos elevados que la competencia. Esto se ve reflejado en su lema “Precios bajos todos los días”. Por otra parte, Sears optó por una reorientación de su mezcla de productos, para aumentar las ventas apelando a una clientela objetivo de clase media, es decir, busca diferenciarse en términos de exclusividad. Esto se ve reflejado en el lema: “Venga y vea el lado más elegante de Sears”. La segunda diferencia tiene que ver con las facilidades de pago, específicamente, el crédito. Por una parte Sears administra su propia tarjeta de crédito, en cambio la tarjeta de Wal-Mart era emitida por el Chase Manhattan Bank y el riesgo de no pago era asumido por el mismo. Esto afecta los resultados de ambas empresas...

Words: 1676 - Pages: 7

Mart-1

...MART-1 DESCRIPTION: Protein MelanA (Melanoma Antigen), also known as MART-1 (Melanocytic Antigen Recognized by cytotoxic T lymphocytes) is a common biomarker used to identify malignant melanoma (MM) in patients, it falls under the MHC (major histocompatability complex) I class. MART-1 is encoded by the MLANA gene in humans and is present normally on the surface of benign nevi (beauty marks), as well as on melanocytes, the pigment-producing cells of your skin that become abnormal and grow out of control if malignant melanoma has developed. Approximately 76,000 new cases of melanoma are diagnosed annually in the Unites States, which accounts for about 2% of the total skin cancer diagnosis in United States annually; however 75% of skin cancer related deaths are the result of MM which exhibits how devastating this form of cancer is. With early detection of melanoma being correlated highly to improved prognosis of patients, it is necessary to create a point of care device that can measure the presence of MART-1 antigen in peripheral blood as a screening technique during annual examinations and upon identification of suspicious skin lesions Protein melan-A  is a protein that in humans is encoded by the MLANA gene . A fragment of the protein, usually consisting of the nine amino acids 27 to 35, is bound byMHC class I complexes which present it to T cells of the immune system. These complexes can be found on the surface of melanoma cells.......

Words: 4004 - Pages: 17

Wall-E

...WALL-E Approximately seven hundred years in the future, the Earth is over-run with garbage and devoid of plant and animal life, the consequence of years of environmental degradation and thoughtless consumerism. The surviving humans are living on the spaceship Axiom after vacating Earth centuries earlier. Axiom is operated by a large corporation called Buy N Large, whose BnL logo appears even on the artificial sun visible from the ship's main concourse. The original plan was for humans to live in outer space for 5 years while cleaning robots ("WALL-Es" invented by Professor Simon) prepared Earth for recolonization. However, after seven hundred years, only one WALL-E (voice: Ben Burtt) remains. WALL-E spends his days compacting debris into solid blocks and building structures with them. He also collects some of the more interesting artifacts and keeps them in the garage he shares with a cockroach, his only friend. At night he watches Hello Dolly on VHS and dreams of having a hand to hold. Most of his finds are spare parts and electronics but one day he discovers a lonely plant. Not sure what it is, but recognizing that it needs soil and care, he picks it up and puts it in a dirt-filled old shoe. The next day, an enormous spaceship lands and deposits another robot, EVE (Extraterrestrial Vegetation Evaluator, voice: Elissa Knight). WALL-E is immediately smitten and hopes to hold her hand, but EVE is quick to use her plasma cannon, which can blast a hole through anything....

Words: 1067 - Pages: 5

Wal Mart

...1962, Wal-Mart has grown to be the largest corporation in the world. Wal-Mart is revolutionizing the way the retail items are passed from producer to end-user by drastically cutting costs at every opportunity and demanding the same of their suppliers. These savings passed onto the consumers has not come without a price! Where some see a discount or a job opportunity, others see an empire that pulls the rug out of existing businesses. For years, Wal-Mart has been accused of a number of criminal actions and questionable ethical practices. Many people, from all walks of life, find themselves discussing (and some even arguing) the topic: “Is Wal-Mart good for America?” Many blame this modern trend of globalism, the outsourcing of manufacturing, the closing of mom & pop stores and independent grocers on Wal-Mart. But the question that must be asked is as follows: Is Wal-Mart really to blame for all the things that they are being accused of? After all, aren’t the consumers fueling Wal-Mart’s position as the number one retailer in the world by their constant search for the lowest possible price? And don’t we have a choice as to where we should shop and isn’t it our responsibility to avoid businesses that we deem are unethical? Is Wal-Mart unethical or are they just misunderstood? Background Wal-Mart has been forced to defend itself against several lawsuits that were filed against them. In the case; Cynthia Haddad vs. Wal-Mart stores, Inc. Wal-Mart was found...

Words: 4304 - Pages: 18

Wall Mart

...Wall Mart Case Study I. Industry Wal-Mart's competitive environment is quite unique. Although Wal-Mart's primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition. In general merchandise retailing, Wal-Mart's primary competitors are Target and Kmart. Retail superstores such as Circuit City and Bed, Bath, and Beyond, also provide retail competition. A survey found that the majority of respondents favored Wal-Mart over stores like Target and Kmart. Respondents claimed Wal-Mart offered lower prices, better variety and selection, and good quality. The needs of consumers is an important economic feature in all competitive environments. What attributes (price, variety, quality, etc.) prompt buyers to choose one retailer over another is very important in the competitive landscape. In the warehouse......

Words: 1764 - Pages: 8

Wal-Mart

...The Grassroots Battle: Wal-Mart Supercenter Rosemead Stephen J.J. McGuire, Christine Chueh, Tia Mao & Isela Mercado California State University, Los Angeles September 11, 2008 Wal-Mart, founded in 1962 in Rogers, Arkansas, was the largest retail chain in the world. Its growth was derived from a wide range of competitive advantages, such as Wal-Mart’s sophisticated use of information technology to keep track of and reorder items, the use of “Just-in-Time” shipments of merchandise from distribution centers that eliminated the need for costly in-store inventory storage2, and the sheer economies of scale it achieved compared to its rivals. Wal-Mart also exploited “economies of density” to make the most of its centralized distribution hubs.3 These advantages, combined with its “Every Day Low Price” strategy, enabled Wal-Mart to serve its target market, of which the residents of Rosemead, California were typical. In 2003, Wal-Mart’s attempt to establish a Supercenter 12 miles from downtown Los Angeles in the city of Inglewood, California was stopped by a community grassroots effort to keep the retailer out. Wal-Mart then diverted its expansion plan to the nearby city of Rosemead, where a new Supercenter would benefit from two Wal-Mart distribution centers within a cluster of ten neighboring Wal-Mart stores. In September 2004, the Rosemead City Council voted in favor of Wal-Mart’s plans to open its first Supercenter in Los Angeles country, alienating many residents who felt......

Words: 11305 - Pages: 46

The Wall

...Corinne Lafalmme-Wathey Professor Keough Critical Writing 120 3 March 2015 “America at War Paper 2” In Jean-Paul Sartre’s “The Wall” there are the five stages of death demonstrated to the audience through what Juan, Tom and Pablo are experiencing. The five stages of death are as follows: denial, anger, bargaining, depression, and acceptance. The main reason for all their actions and the ways in which they are reacting to the situation are based around fear. We are able to distinguish a slight difference between the two Tom and Pablo and the young child, Juan. Pablo and Tom’s main fear is concentrated on the physical and emotional pain and suffering that will come from being executed, while Juan simply remains cornered in the cell, in an emotionless state one could say, because he is being executed for something he is not responsible for. Sartre provides his readers with a great deal of detail about the emotions and physical reactions that the three experience as it gets closer to the morning of their execution. Along with the feeling of fear, there are many more ways in which the three respond to such a traumatizing situation. The first stage of death is known as denial. It is clearly shown in the beginning of the night that the three of them are unable to accept the fact that they have been sentenced to death and even more so that little Juan has been as well. It is naturally a hard notion to grasp for the mind and the body of someone who is currently alive, with...

Words: 1024 - Pages: 5

Walls

...和路雪(中国)有限公司:初创期物 流运作 Walls (China) Co., Ltd.: Logistics Operations Startup By Peter Gilmour Professor of Management 和路雪(英文:Wall's)为英 国著名冰激凌企业,总部设在 英国,在全球拥有多家分公 司。是联合利华旗下企业。其 在中国生产的冰激凌品牌是 “ 和路雪”。1993年,和路雪 (中国)有限公司成立。 of: Macquarie University Australia This case was prepared as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. LOGISTICS CASE STUDY DEVELOPED F OR : COUNCIL OF LOGISTICS MANAGEMENT Walls (China) Co., Ltd. Logistics Operations Startup In mid 1994 the Unilever company Walls (China) Co started manufacturing and selling ice cream in China. Bob Smith, the General Manager of Wall’ outlined some of the s challenges: Operating in China means a number of new concepts for the Chinese managers -profit, selling and customer service. The Chinese manager of the past sat in his office and the customers came to him. It was absolutely a supply driven market. I read in an official report some time ago a list of phrases that should not be used when talking to customers. The list included “Go away and don’ waste my time’ t and ‘ Can’ you hear? Are your ears dirty?’This has now changed and a key to t success is getting our product out to the customers. Distribution costs here are 20 per cent of MPS compared to 5 per cent in Europe. As Loic Courant, Bob Smith’ Commercial Manager in Shanghai, summarized the s situation: He who wins logistics wins China. Unilever in China Unilever is an Anglo-Dutch company......

Words: 7441 - Pages: 30

Jeannette Walls

...Acclaimed author Jeannette Walls sat dressed in designer clothes in a taxi on her way to a New York party. She looked out the window and saw her mother digging through the trash in the dumpster. She slunk down in her seat. "What am I supposed to tell people when they ask me about you?" Walls asked her mother later. "Tell them the truth," her mother answered. It was the pivotal moment Walls cites in her decision to write hermemior and this year's freshman common reader, "The GlassCastle." Walls visited spoke to a packed John R. Emens Auditorium Wednesday night. "I'm just a woman with a really weird childhood," Walls said at the beginning of her presentation. "But the telling of that story has greatly changed my life." "The Glass Castle" is a memoir of poverty and homeless but also of dreams and self-esteem. In it the memoir, Walls tells of being three years old, getting hungry and cooking herself hot dogs. She suffered third-degree burns while her mother painted in the next room of their trailer. When Walls was 13, her father, an alcoholic named Rex, took her with him on a "business trip." They went to a bar. While Rex played pool, his daughter fended off sexual advances from the seedy men he gambled with. Walls writes that her complaints about the situation were stifled by the knowledge that they needed the money for food. Despite the abundance of shocking stories in her memoir and her past, Walls' message to students and faculty Wednesday was one of hope. "If......

Words: 684 - Pages: 3

Wal-Mart

...article appears in the Nov. 14, 2003 issue of Executive Intelligence Review. Wal-Mart Is Not a Business, It's an Economic Diseaseby Richard Freeman and Arthur Ticknor(See also ``Wal-Mart Collapses U.S. Cities and Towns,'' Nov. 14, 2003; ``Wal-Mart Eats More Manufacturers, Jobs,'' Nov. 21, 2003; Wal-Mart Family Trust--The Real Beast of Bentonville, Ark., Jan. 23, 2004.)The Wal-Mart department store chain, which employs 1.3 million people at 4,700 stores worldwide, and in 2002 became the largest corporation in the world, is levelling economies of the U.S., industrial nations, and the Third World.Wal-Mart is a driving force behind the decadent Imperial Roman model of the United States. Unable any longer to reproduce its own population's existence through its own physical economy, the United States has, for the past two decades, used an over-valued dollar to suck in physical goods from around the globe for its survival. Wal-Mart is both the public face and working sinews of that policy. It brings in cheap pants from Bangladesh, cheap shirts from China, cheap food from Mexico, etc. Workers who produce these things are paid next to nothing.Not since the days of the British East India Company as the cornerstone of the British imperial system, has one single corporate entity been responsible for so much misery. At the core of its policy, Wal-Mart demands of its suppliers that they sell goods to Wal-Mart at such a low price, that they can only do so by outsourcing their work to......

Words: 5677 - Pages: 23