CASE 1 Walmart has imported more than 70% of their merchandise from China and they are becoming one of the major retail companies rapidly. One of the main US grocery and discount retailer Wal-Mart has spent 17 years to be perfect their business model in China. At the first time when they got into Chinese market, they had some problem because Chinese market was complicated. However, they designed to meet what people needed in the new Chinese market. While they were researching and gathering all of information in China, They tried to fix what unmatched convenience and cultural differences between U.S. and China. They also opened the Wal-Mart’s Global Sourcing office in 2002. War-mart had contributed about $10.6 billion to their last year gross revenue and it was 15% of previous year. They opened in Shenzhen, China in 1996, but now they have 94 stores in 51 cities, and they have more than 20,000 suppliers to make a lot of items to sell to the billions of customers in China. I think War-Mart has high level of rate the attractiveness of the retail environment in China. They have competitive rivals as Carrefour, Tesco, and many other smaller local shops. They tried to get into the China retailer industry that had foreign general merchandisers or discounters, established Chinese Retailers, and they had planned Asian conglomerates with lower cost structures. For the buyer’s power, they tried to get diversity of ethnic and economic backgrounds and cultural bias for a specific condition of products, delivering in a unique supply chain which is key to China consumers. They also have supplier’s power which is U.S. product manufacturers,…
Wal-Mart Stores: Every Day Low Prices in China
Global Business Operations
This case analysis is written in the perspective of a consultant to the president and CEO of Wal-Mart Asia. Joe Hatfield currently holds the position of president at Wal-Mart Asia: he oversees most of the business related decisions that Wal-Mart plans to exercise in China, and is responsible to influence the application of appropriate business strategies within the company in order…
• Backlash and protesting against big business (OCCUPY WALLSTREET ETC.)
• The is world wide tension over the domino effect of recessions in multiple countries
• There is some stigma against Walmart customers and employees
• Trend toward organic foods, farmer market and fair trade
• Concern for how Walmart treats employees
• People less worried about loss of personal touch (i.e. on line)
• People are Less time, busier lives
• Improvements in technology to track inventory, connect…
Walmart Case Analysis
Situational (SWOT) Analysis
Internal Factors (Strengths & Weaknesses)
With a store available in each corner, nationally and internationally, Walmart is a superpower retail brand. Using an immaculate pricing strategy, Walmart has imprinted on the minds of the consumers the “Everyday low prices, rollback, and special buy.” Walmart provides an immense variety of products that reaches all cultures and social levels. “Walmart helps people around the…
Most of the Americans are familiar with Wal-Mart as, a company with stores offer everything a person could need at discounted prices. In order to keep the operating cost at minimal and maintain low prices, Wal-Mart pays relatively low wages, provides minimal benefits to its employees, and contracts with international manufacturing firms that fit the definition of “sweatshops”. Because Wal-Mart’s business strategy, and opening a new Wal-Mart in Rosemead, there are a groups of people…
Walmart Case Synopsis
The first problem from the case was that Walmart’s seafood business was growing at 25% per year while their supply was diminishing. Continuity of supply was the greatest long-term issue facing Walmart’s seafood business. Walmart adopted a new strategy in which the goal was to transition to selling 100 percent MSC certified wild-caught salmon. Achieving the goal of 100% of suppliers being MSC certified was not an easy task because low margins…
on being the industry leader in several key areas. Walmart focused on maintaining high employee morale, judging exactly how far they can push suppliers to force discounts, cutting edge management information systems, and masterfully planning their logistics chain to minimize cost by maximizing volume shipping are key competencies.
Maintaining high morale while keeping compensation at low levels is a great benefit in managing costs. Walmart strong corporate culture recognizes employees for achievement…
Walmart Strategic Recommendation
As one of the largest retailers in the U.S. and one of the biggest multinational companies in the world, Wal-Mart is strategically positioned to continue to grow. In 2011, Wal-Mart’s net sales were nearly $20 billion, had over 8,400 stores in 14 countries, and employed nearly 2 million people worldwide. However, due to competitors such as Target and Amazon and a smaller global market, Wal-Mart is struggling to keep up with its annual 10% increase in sales. Currently…
REPORT ON CASE STUDY: Wal-Mart in Japan
Question 1: How would you characterize Wal-Mart’s approach to global management?
The trademark of Wal-Mart’s global management approach focuses on 3 main strategies: low price, best value, large selection of goods & high quality service.
Being the world’s largest retailer, Wal-Mart will enter the international market by providing a wide variety of products at a lower price than its domestic competitors. In addition, one of the common…
system linking all their store into the same portal.
One important portion of the Value Chain is to identify business operations that are not adding value, or causing the company to incur loses, and to implement solutions to overcome them. In this case, Wal-Mart has chosen to outsource their productions to well known manufactures. By doing so, Wal-Mart has managed to lower the cost of production thanks to their bargaining power due to their economic of scales. Therefore, by outsourcing the production…