Select network Wal-Mart is often considered to be the most American of all corporations. Huge, monolithic, and dominating, Wal-Mart is the source of labor controversy, pricing debates, and a horde of other major issues.
Executive Summary China, a country with population of 1. Opening its first store in Shen-Zen in the year of and since then has grown to 81 stores in 20 more cities around china. In China, Wal-Mart is using adaptation strategy where it locally sourced its product although the organizational culture is standardized with the home country.
Adaptation strategy does not apply only to the product wise, in term of the store formats are also adapted to the local cultures where racks height, and stores layout are also changed to meet local taste.
From the macro-environment view of the china retailing industry, Wal-Mart will face threats on the political side where the government is not transparent enough in the policy making.
Moreover, it is currently anticipating the economic big turnover by tightening the regulations on the land although China is still encouraging foreign investment.
In China, Wal-Mart will face strong competition from its arch-rivals Carrefour and other strong local competitor such as Lian-Hua supermarkets and China Resources Enterprise of which both are the pioneers in the China retailing industry.
The current position of Wal-Mart in China is still far away to be as the same level with them as Wal-Mart is unable to apply its superiority in logistics that win the competition in USA. Although it is a vast market, not all the populations have great spending power.
It is a country of haven and have not, where the income disparity become a large issue. The middle income class only represents millions people and mostly remain in the urban area. China is a very fragmented market and rich in cultures background which may trap companies to generalize them.
Despite of it, China is certainly a very attractive market to invest in as the indicators in economic has been shining for the last twenty years. Wal-Mart expansion campaign in China begins in the year ofwhere it sent a team to evaluate the prospect of investment in that country.
The last count made in 4th April showed that the number of the stores in China has grown to 81 stores; 76 supercenters, 3 SAMs club and 2 neighborhood markets Wal-MartChina, Third is to refine the image of the company by carrying out company sustainability, community benefits Scott,social responsibility Wal-Martchina, programs besides allowing unionization of its workers McGregor, Finally is to reach out to other sector of retailers by opening up Pharmacies, Optical, Tire and Lube services, or Alaskan Bush shoppers for those who stays in Alaska and need to shop.
Therefore, In order to provide customers the lowest price, Wal-Mart has taken into actions to fulfill few objectives that can be seen in their sustainability strategies. Their sustainability strategies are to improve social, economic and environmental practices. In order to apply this strategy, Wal-Mart is currently trying to increase local procurement, establish good relationship with suppliers, modernized commodity distribution and computerized system in its management with a reason to improve efficiency and reduce cost ICFAI, Also, in order to refine the bad image that it received in the host country, Wal-Mart in China has begin the social responsibilities campaign early where it involves itself in environment protection, donation to the wellbeing of senior citizen, education support, and disaster relief Wal-MartChina, Moreover, whenever associates of Wal-Mart come to a customer within ten feet, they will have to greet and offer helps to the customer.
China is a collectivist culture, different to the host country which is more on the individualists. Moreover, the Chinese are also higher on the power distance if compared to host country Hofstede, Furthermore, it is also noted that the Chinese of which have lived under influence of western culture will aware of their self-enhancement thus low power distance, and more ambitious rather than those who never lived under the influences Jaw, et.
This partner will surely have a reliable knowledge towards the market condition and situation thus provides good information for Wal-Mart to adapt its strategy. In addition, to imply the strategy of low cost, Wal-Mart is using local procurement to stock the shelves in its mart.
Moreover, good relationships were also being established with the suppliers, where Wal-Mart is paying the supplier within days ICFAI, Wal-Mart encourage its workers to perform better, thus it provides career incentives to those that performs well.
It gives training opportunity for them, by sending them to U. S to attend a training program. This off course will affect the efficiency in the distribution of the goods and furthermore affect the low price strategy not being carried at the best.
Moreover, Wal-Mart in China is not applying an aggressive expansion strategy where it only managed to open 77 stores in 11 years of operations.
The lack of market knowledge has also hinders Wal-Mart to have a wholly owned company based in China thus the profit will have to be shared with others unlike Carrefour that able to operate in sole-ownership since Euromonitor, Wal-Mart is often considered to be the most American of all corporations.
Huge, monolithic, and dominating, Wal-Mart is the source of labor controversy, pricing leslutinsduphoenix.com · Wal-Mart, now it is branded as Walmart is the world largest public multinational corporation by revenue in , which runs a chain of large discount department stores and a chain of warehouse stores leslutinsduphoenix.com://leslutinsduphoenix.com?id= · Wal-Mart is the world’s largest retailer stores emerged in Arkansas, USA since by Sam Walton with his belief that the future of retailing lay in discounting, focusing on value drivers: price and service, convenience and a wide rage of product all in one leslutinsduphoenix.com://leslutinsduphoenix.com The trouble is that many of Wal-Mart's strategies, even if successful, may be hard to notice at a company with nearly $ billion in annual sales.
leslutinsduphoenix.com Walmart Case Study Essay - Wal-Mart, now it is branded as Walmart is the world largest public multinational corporation by revenue in , which runs a chain of large discount department stores and a chain of warehouse stores worldwide.
The future of Wal-Mart looks extremely profitable especially if they continue to increase its profits. · According to a consultant hired by plaintiffs in a sex discrimination lawsuit, in , Wal-Mart's EEOC filings showed that female employees made up 65 percent of Wal-Mart's hourly paid workforce, but only 33 percent of its leslutinsduphoenix.com communities · Allegations of predatory pricing and supplier issuesleslutinsduphoenix.com