...Competing in Foreign Markets Executive Summary Walmart has grown into one of the largest retail stores in the world and has proven their operation is successful and effective. However, Walmart is being faced with understanding the symptoms of their domestic problems before being able to compete globally and face additional foreign challenges. This report documents the overview of Walmart and its key strategies. Then, Walmart is analyzed and evaluated. Finally, recommendations regarding Walmart competing in foreign markets is provided. Overview Walmart is the number one retailer in the United States and is at the top of the Fortune 500 listing. Wal-Mart operates in many countries worldwide and is pursuing market share in new countries. As Walmart grows, so do the number of people who have a stake in Walmart. Each year, more claims are made against Walmart by the unions, disgruntled employees and other advocacy groups supporting various interests. Additionally, Walmart is often able to undercut many other local industries forcing more and more local businesses to shut down when Walmart moves into town. As a result of Walmart's ever growing size and dominance, their reputation is becoming more important than before. Also, as Walmart expands into different markets, they will need to be aware of specific country regulations and cultural expectations. These issues need to be addressed by Walmart in order to make it possible for Walmart to build a positive reputation...
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...Starbucks Corporation: Competing in a Global Market There are multiple factors that Starbucks should consider in deciding where and when to expand into international markets. In determining where to expand it’s important that Starbuck’s considers the local demographics of each region they may expand into. When determining which countries or regions to expand into, they need to consider where consumer’s tastes and preferences align with their product offerings. In Starbucks case, they offer a product that is used by people worldwide but they sell it at a price premium so it’s important that they choose locations in more affluent areas. While their goal seems to be to eventually expand into markets throughout the entire world, including emerging markets, their focus at this point should mainly be on more established countries where the demand will be much greater due to the larger percentage of consumers who can afford their product. They should also look to densely populated areas where they can be sure to see large amounts of traffic on a daily basis. They must also consider differences in host government demands when determining where to expand. Some markets may be more difficult to enter due to local rules and regulations that may not be in place in other countries. Since Starbucks has chosen to operate with local partners in their international markets it’s important that they choose locations where they feel comfortable and confident in the abilities of their...
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...international markets. In determining where to expand it’s important that Starbuck’s considers the local demographics of each region they may expand into. When determining which countries or regions to expand into, they need to consider where consumer’s tastes and preferences align with their product offerings. In Starbucks case, they offer a product that is used by people worldwide but they sell it at a price premium so it’s important that they choose locations in more affluent areas. While their goal seems to be to eventually expand into markets throughout the entire world, including emerging markets, their focus at this point should mainly be on more established countries where the demand will be much greater due to the larger percentage of consumers who can afford their product. They should also look to densely populated areas where they can be sure to see large amounts of traffic on a daily basis. They must also consider differences in host government demands when determining where to expand. Some markets may be more difficult to enter due to local rules and regulations that may not be in place in other countries. Since Starbucks has chosen to operate with local partners in their international markets it’s important that they choose locations where they feel comfortable and confident in the abilities of their partners. They may find a market that seems very profitable, but if they can’t find a local partner to work with they may need to hold off on entering that market until...
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...1. Journal Title “Competing Loyalty Programs: Impact of Market Saturation, Market Share, and Category Expandability” 2. Introduction Loyalty programs have become an important component of firms’ relationship management strategies. There are now some industries in which numerous rival loyalty programs are offered, inducing intense competition among these programs. However, existing research on loyalty programs has often studied such programs in a on competitive setting and has often focused on a single program in isolation. Addressing this gap, this research examines the effect of a firm’s competitive positioning and market saturation on the performance of the firm’s loyalty program. 3.1. Research Problem Statement Are loyalty programs a viable strategy that can increase revenue potentials, even with competitive offerings in the same market? 3.2. Jurnal Summary With limited research on loyalty programs, it is still unclear to what extent loyalty programs are effective and, more important, what induces the success and failure of different programs. Although some studies have examined the moderating effects of program and consumer characteristics, existing research tends to put a loyalty program in a vacuum that is void of impact from rival firms and programs. Questions still remain as to whether competitive loyalty programs in such industries really cancel one another’s effects out, creating a zero-sum game, or whether some firms may enjoy...
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...activity. In fact, understanding the actions of competitors can be a key component in developing a company’s own strategies. If a company is to develop a competitive advantage that will form the basis of any strategy, it must first understand the competitive environment in which it can create such an advantage (called Competitor Analysis). Then, it must understand the product choices currently available to potential customers (called Competing Products Analysis). Competitor Analysis First, a company must understand the types of competition it will face. In order to find the current and potential competitors in a marketplace, a firm must be able to differentiate the various types of competition: direct and indirect. Direct competitors are those branded or product-based competitors that have created direct substitutes to what a company is offering. Generic competitors often compete directly but often without the features and benefits provided by direct competitors. Indirect competition focuses more on satisfying the customer’s needs rather than competing with a direct substitute. An example of direct competition for Pepsi would include soft drinks such as Coca-Cola and Canada Dry, energy drinks such as Monster, and bottled water...
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...want "to enable trade to take place in markets which are unable to pay for imports. This can occur as a result of a non-convertible currency, a lack of commercial credit or a shortage of foreign exchange" The Political Environment - local jobs and industry "to protect or stimulate the output of domestic industries (including agriculture and mineral extraction) and to help find new export markets" The Political Environment - rules and regulations to protect the host country "as a reflection of political and economic policies which seek to plan and balance overseas trade" "to gain a competitive advantage over competing suppliers." .Money - some people cannot pay in the currency you want "to enable trade to take place in markets which are unable to pay for imports. This can occur as a result of a non-convertible currency, a lack of commercial credit or a shortage of foreign exchange" The Political Environment - local jobs and industry "to protect or stimulate the output of domestic industries (including agriculture and mineral extraction) and to help find new export markets" The Political Environment - rules and regulations to protect the host country "as a reflection of political and economic policies which seek to plan and balance overseas trade" "to gain a competitive advantage over competing suppliers." .Money - some people cannot pay in the currency you want "to enable trade to take place in markets which are unable to pay for imports. This...
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...(strategic groups of competing firms) of each strategic group of the firms of your choice. (max 1.5 pages) International Business Machines Corporation IBM Business Segments: The company’s major operations consists of five business segments: 1. Global Technology Services * Primarily provides IT infrastructure services and business process services, delivering business value through global scale, standardization and automation. 2. Global Business Services * Primarily provides professional services and application management services, with IMB solutions, which leverage industry and business-process expertise while integrating the industry-leading portfolio of IBM and strategic partners, to define the upper end of client-valued services. 3. Software * Consists primarily of middleware and operating systems software 4. Systems and Technology * Provides clients with business solutions requiring advanced computing power and storage capabilities. 5. Global Financing * facilitates clients’ acquisition of IBM systems, software and services Main IBM Competitors: Hewlett-Packard HP operations are organized into seven business segments: 1. Personal Systems Group (‘‘PSG’’) Is a hydride across all IBM SBU 2. Services The Strategic group competing with IBM Global Business Services SBU 3. Imaging and Printing Group (‘‘IPG’’) 4. Enterprise Servers, Storage and Networking (‘‘ESSN’’) The Strategic group competing with IBM System and...
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...staff (highest among all the competing vendors taken together) across 9 bureaus and provides unmatched coverage of the Indian economy and financial markets. Competing financial news agencies in comparison have lesser covering India. It is unarguably the best news provider on Indian Financial Markets and consistently breaks important news (which has an impact on the market) on a regular basis. It gives extensive coverage on economic information, Ministry of Finance, Major Economic Indicators (Like inflation, etc), Bond Markets RBI Actions (Monetary Policy, etc.). Cogencis does more than 5 times more news coverage than any competing financial news agency. COGENCIS covers quarterly earnings of more than 2,500 listed companies (compared to 200-odd done by competing vendors) and has unparallel coverage of fundamental data (balance sheet, P&L, etc.) of almost 1,500 companies available on right click. No competing vendor covers as many companies. 2. User-friendly COGENCIS Workstation is a windows based application and is extremely user friendly( easy to use functions like right click, double click, drag & drop, etc.). Compared to other products, users don’t have to remember any complicated commands to use the product. 3. Stock Screener COGENCIS provides an inhouse developed ,extremely sophisticated ,excel based easy to use analytical tool which helps in screening stocks, querying based on the applied complex formulas and watch the market based on well defined parameters(more...
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...Tablet Co. We sell 3 different types of handheld tablets. The X5 tablet is targeted at the price conscious market whereas X6 is targeted at the performance oriented market. X7 is the newest product with focus on consumers that value both price and performance. Let us review the performance of each product category along with my proposed strategy and recommendations for the forthcoming years. Let me Start with X5: Indeed, X5 is aimed at price conscious consumers. The company has historically done quite well with this product in the last 5 years in terms of performance against the competition. The sales for this product peaked in 2013. However, the sales started declining after 2013 in the last couple of years due to saturation of the market. Joe kept the pricing of this product same throughout this period which turned out to be negative for the company as the organization needed a price cut in order to attract customers from other competing products. Since the product was competitive in terms of performance, Joe should have declined R&D investment on this product as consumers were more price conscious than performance conscious for this product. ("forio.com," 2015) Since this product competes in a highly saturated price conscious segment, my recommendation will be to reduce investment in R&D on this product as performance is not required to attract buyers. The target market is “first time buyer” and low product pricing. The company should spent minimal amount on R&D and focused...
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...Blue Ocean Strategy Melissa Keck June 5, 2014 MKT421 Dr. Linda Murawski Blue Ocean Strategy Competing in overcrowded industries such as technology is no way to sustain high performance. The real opportunity is to create blue oceans of uncontested market space. The Apple Ipad and Kindle Fire would be considered Blue Ocean products as oppose to Red Ocean products. Apple achieved a worthy invention by designing the Ipad, which led to the creation of a new market space. Apple intrigued consumers with the limits of the space by educating customers on its comprehensible use. Amazon introducing the Kindle Fire shortly after the Ipad which targeted non-Ipad users and defined its own name by developing the Kindle Fire as a media savvy device with prominent features enabled by Amazon’s massive media platform. Both of these similar but distinctive products made the competition irrelevant. According to Kim and Mouborgne (2004), “Blue Ocean strategy is simply creating an uncontested market space and defining its boundaries rather than competing in the confines of an existing industry”. As the space for products get more and more crowded, projections for profits and growth are condensed. Blue oceans represent all the industries not in existence today in the unidentified market space, untainted by competition (Kim and Mouborgne, 2004). In blue oceans, demand is created rather than fought over. There is sufficient opportunity for growth that is both profitable and prompt. Companies...
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...Competitive Challenges Influencing Human Resource Management 14 Key Terms 61 Discussion Questions 61 Self-Assessment Exercise 62 Exercising Strategy 62 Managing People Skill Shortages Make It Difficult to Fill Positions and Customer Orders 63 Twitter Focus 64 Notes 64 Parti The Human Resource Environment 69 2 Strategic Human Resource Management 70 The Sustainability Challenge 14 Enter the World of Business: HP's New Strategy 71 Evidence-Based HR 24 Introduction 72 Competing through Sustainability Volunteerism and Going Green Are Reaping Dividends for Employees, Communities, and the Environment 30 What Is a Business Model? 72 GM's Attempt to Survive 73 What Is Strategic Management? 74 Components of the Strategic Management Process 75 Linkage between HRM and the Strategic Management Process 75 The Global Challenge 44 Competing through Globalization Apple Polishes Its Image through Auditing Overseas Suppliers 47 The Technology Challenge 48 Competing through Technology Connectiveness Enhances HR Practices 51 Meeting Competitive Challenges through HRM Practices 56 Organization of This Book 59 A Look Back 60 Summary 60...
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...(Date) (Instructor’s name) (Unit’s name) Factors to consider before importing. The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an importer who is based in the country of import. And in this case we are the importers. Some of the questions to consider are: Are there trade agreements? And with whom? This is one of the major factors to consider before carrying out the importation process. We will need to obtain market import information about the coffee beans in order to establish effective trade agreement with the right supplier. This information can be obtained from the internet, visiting potential markets and exhibitions and from established importers. After selecting the right supplier of the coffee beans establishment of trade agreements follows like placing the order and delivery of the goods through proper use of documents but before then we should ensure we have the trading license, import license and the import permit. Trade agreements are established with the supplier once he/she has also complied with the relevant regulations. Some of the trade agreements include: the method of payment, transfer of liabilities during transportation among others. This trade agreements are facilitated by the availability of International Commercial Terms which defines responsibilities regarding title, risks and costs, and eliminates possibilities...
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...its innovative hardware, software and Internet offerings. (Apple.com/investor) When you imagine the creative process at Apple, at first you may not picture someone in HR. Or operations. Or finance. But we expect creative thinking and solutions from everyone here, no matter what their responsibilities are. Innovation takes many forms, and our people seem to find new ones every day. (Apple.com 2012) Issues at Apple Inc: The issues at Apple Incorporated varied over time from a relative incubator working in a garage developed in computers and software garnered from Xerox corporation to that of a major innovative industry player and leader in strategic innovation of technological advancement. Competing Values Framework: Maturity of a company will span all competing values framework over time from perhaps a clan culture in the beginning immature company to an adhocracy culture of innovation and creativity. As the company grows expands and develops and more people are hired the necessity of some controls are realized as a...
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...out whether they are creating value for the firm or not. Blue Ocean Strategy is basically to create new uncontested markets solely through innovation and creativity where demand is created and derived from the market. Whereas Red Ocean refers to competing in the existing share of market with your rivalry firms within set boundaries to gain a bigger portion of the pie. Researches done on various firms following the Blue Ocean strategy have shown that firms which have invested and focused on areas which customers value the most have achieved huge profits mainly through cost leadership. Red Ocean strategy offers high value at a higher cost or can offer low value at a lower cost, this is a tradeoff where the Blue Ocean strategy has an advantage as its purpose is to create value and offer newer products/services which have not been previously introduced in the market or to a specific untapped market segment. Blue Ocean strategy not only requires technological advancements but also creating value for the buyers to achieve differentiation and cost leadership in the industry. In the case study, Cirque Du Soleil is working on the Blue Ocean Strategy as he had successfully managed to attract a great crowd of clients and earned great profits. Basically, he created a new market by mixing the concept of a traditional Circus with an Opera. It was a new concept in the market...
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...Differentiating Between Market Structures Lydia Moore ECO 365 Eugene Gotwalt May 11, 2015 Differentiating Between Market Structures The competitive balance between forms is unique in every industry. A single company, while others, dominates some industries, have thousands of small companies competing for the market share. The composition of competitive forms is known as the market structure. For the purpose of this essay, I will focus on a firm called, Safeway Incorporated. This company works in the grocery industry, which would be an example of monopolistic competition. An analysis of the market structure wil be described and competitive strategies’ will be recommended for the company. Implementing these strategies will help this company in being successful in the market structure. Defining Monopolistic Competition Monopolistic competition occurs when there are many different firms competing for market share of similar products. These are generally low barriers. Which means that it is relatively easy for small companies to become a competitor in the market. All of the companies in this system sell similar products and must make a strong effort towards product differentiation. Products and services are considered to have a high elasticity of demand; meaning consumer has many comparable alternatives to choose from. If a firm decides to raise prices, a consumer in a monopolistic competition market should find it easy to find a similar alternative in their local area...
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