Its supply strategy in its home country was to build stores in remote locations where other stores were not available, thereby creating markets and adequate sales volumes to generate economies of scale from…
Download file to see previous pages...
China is WalMart’s largest supplier, but in terms of sales WalMart ranks 24th in China after the local stores, while French retail giant Carrefour ranks fourth.
The WalMart model of everyday low prices, coupled with supplier and cost controls has been successful in some countries such as Mexico, Canada and Britain. In Germany, the company has not done well due to existing competition, high labour costs and zoning laws. Altho0ugh China has the kind of market size comparable to domestic markets, thereby presenting an opportunity to duplicate domestic success, this has not occurred, as stated above. The Company has been losing money since its arrival in the country. Some of the other foreign retail chains operating in the country include UK’s Tesco, Thailand’s Lotus and Germany’s Metro. The local Chinese retail chain, Bailan, was most successful because of localised demand, supply base and distribution. Due to the wide disparities in income among Chinese customers, Walmart could not operate its national model, because purchasing patterns and good demanded were different at different locations and a standardised model was not successful. Local protectionism was also a barrier. The poor infrastructure in the country also added to the logistical and supply costs, thereby increasing costs.
Firstly, Walmart’s attracted customers by its Everyday Low Prices. It maintained a relentless cost control system by allowing few perks for its officers and employees. It was also able to negotiate tough deals with its suppliers, using its ability to place bulk orders to also make other demand such as high quality and low prices, which it then passed on to its customers. It ,maintained several distribution outlets and initiated an electronic data interchange system, allowing suppliers to track sales to deliver new stocks and they were
...Download file to see next pagesRead More
Governmental institutions are limiting the permits Wal-Mart gets to open stores in certain regions. A way for Wal-Mart to eliminate this barrier of entry is by utilizing e-commerce. Wal-Mart utilizes e-commerce to attract customers worldwide. The firm has a very attractive websites that has a vast variety of items available for sale at reasonable prices.
Evaluation Essay on Wal-Mart Introduction: The Wal-Mart has shown the art of retailing. The global retail giant came up with the concept of selling mass products in a discounted rate to the customers. The main concept was to sell in high volume with low price so the volume of the profit goes high.
Wal-mart announced in June 2003 that by 1st January 2005 it would implement RFID technology in its supply chain. The initial plan was to have 100 suppliers comply with the change but 129 suppliers responded as none wanted to be left behind. Wal-mart had made it very clear what the EPC (electronic product code) would be, the class of chips they would expect and it also named the distribution centers that would start accepting the RFID deliveries.
Wal-Mart started its international operation by entering the emerging markets. Its approach to emerging markets illustrates a link between globalization of markets and competitive strategy. Strategic management helps to understand and define the goals, vision, mission, objectives, roles, and responsibilities of the organization.
out of which two-third are women but it has been found that only one-third of its managerial positions has been accounted by the women (Sournar, 2007).
With reference to a case of sex discrimination against U.S. Information Agency by more than 1000 women who were refused
Investors consider Wal-Mart’s common shares a blue chip stock. Blue chips stocks are defined as stocks issued by a well-know company with an established record for making money and paying dividends (Teweles & Bradley & Teweles).
The fact that Wal-Mart today is the biggest retailer speaks of the success of its pricing strategy. “Wal-Mart is not just the worlds largest retailer. Its the worlds largest company--bigger than ExxonMobil, General Motors, and General Electric” (Fishman, 2003). Wal-Mart