...Opportunities (benefits): There will be more organization in the sector: Organized retail will need more workers. According to findings of KPMG , in China, the employment in both retail and wholesale trade increased from 4% in 1992 to about 7% in 2001, post reforms and innovative competition in retail sector in that country. Healthy Competition will be boosted and there will be a check on the prices (inflation):Retail giants such as Walmart, Carrefour, Tesco, Target and other global retail companies already have operations in other countries for over 30 years. Until now, they have not at all become monopolies rather they have managed to keep a check on the food inflation through their healthy competitive practices. Create transparency in the system: the intermediaries operating as per mandi norms do not have transparency in their pricing. According to some of the reports, an average Indian farmer realises only one-third of the price, which the final consumer pays. Intermediaries and mandi system will be evicted, hence directly benefiting the farmers and producers: the prices of commodities will automatically be checked. For example, according to Business Standard, Walmart has introduced ―Direct Farm Project‖ at Haider Nagar in Punjab, where 110 farmers have been connected with Bharti Walmart for sourcing fresh vegetables directly. Quality Control and Control over Leakage and Wastage: due to organisation of the sector, 40% of the production...
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...Business Concept That Changed History A business concept that has changed history Over the last 40 yrs there have been several changes that have occurred in the retail industry that has changed the way we shop today. The business concept of most department stores goes back in history for hundreds of years, but it has evolved and changed over the last forty years. Initially most retail stores were independent and locally owned in the city they conducted business in. Department stores were identified by the products they sold. There were hardware stores, furniture stores, toy stores, clothing stores, grocery stores, and even produce stores. Consumers went to specific stores to purchase specific items. Local specialty stores were replaced by the supermarket. These new superstores specialized in fruit, vegetables and food items, while others went in the opposite direction offering their customers non food items as the core of their business. Consumers were able to purchase essential products that included clothing, furniture, appliances, toiletries, cosmetics, jewelry, toys, and even sporting goods from one location. This had a bad effect on smaller stores as owners were unable to compete with the bigger chains that offered consumers a wide variety of products. Over the last 20 to 30 years, we have seen these supermarkets evolve into yet a different shopping environment for consumers to shop. For example...
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...entRECHACHE Khaled Oualid EBS Paris Student Shanghai University Marketing Report Example of Wal-Mart Summary I.The Chinese Retail Market A. Analysis of the Chinese Retail Market B. A picture of China’s Retail Market : facts & figures II. Wal-Mart in China III. Wal-Mart suggested business model in China A. General Analysis B. Suggestions I. The Chinese Retail Market China is first of all a demographic power: 1 human being out of 5 is living there. It is a permanent member of the United Nations Security Council is in possession of the nuclear weapon and recently shoots down its own space satellites: this makes from it also a military power. As a matter of fact, China is replacing Japan as the diplomatic focus in Asia, and above all as the economic focus. Indeed, industrialized countries must take into account anew economic power and inevitable partner, all the more as it is a member of the World Trade Organization (WTO) since 2001. As a consequence, a good many foreign groups have decided to gain a foothold in the Chinese market, which is not an easy thing. We will firstly mention the opportunities and the obstacles which feature the Chinese retailing market. Secondly, we will try to establish a picture of this market, with its main current facts and figures. A. Analysis of the Chinese retail market China is today part of the WTO, entailing progressive liberalization of the market. Nevertheless, this does not mean that it has become...
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...I. Problem For Sears Holding Company (SHC) to come up with a business strategy that will address competition, culture, and synergy and create a distinct brand image and identity for the company, which will help them succeed in the long run. II. Subproblem For the two companies, Kmart Holding Corporation (“Kmart”) and Sears, Roebuck & Co. (“Sears”) to be able to act as one company and create value. III. Objectives 1. To create a brand image identity 2. To create a culture of success 3. To generate consumer loyalty 4. To appropriately position the company in the retailing business industry 5. To be able to address competition 6. To make SHC a profitable company in the long term 7. To build a broader customer base IV. Case Facts and Analysis The merger of Kmart and Sears in late 2004 occurred to gain competitive advantage over its competitors by combining strengths of Sears and Kmart for the long-term value for SHC. This merger will benefit both companies in an ever changing and competitive retail industry. SHC will be able to enter into new markets with its combined expertise of Kmart in discounter stores and Sears in department stores. This merger benefits both companies in different ways separately and to the new merged entity – SHC. Kmart will benefit from the planned cost sharing of several of Sears leading proprietary brands as well as present opportunities to capture significant revenue and cost synergies including merchandise and non-merchandise...
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...Wednesday April 18th, 2012 BUS 800, Section 131 Professor: Jim Diodati Individual Case Assignment Turnitin ID# 243102298 Joseph Nicosia 500198044 TABLE OF CONTENTS Strategic Recommendations 3 Appendix A: Industrial Analysis 6 B: PEST Analysis 6 C: Key Driving Forces 7 D: Porter’s Five Forces Analysis 7 E: Strategic Group Map 7 F: Key Strategic Factors 8 G: Competitor Analysis 8 H: Attractiveness of Industry 8 I: Mission and Vision Statement 8 J: Value Chain 9 K: Financial Analysis 9 L: SWOT Analysis 10 M: Issues 10 N: Rationale for Issues 10 O: Execution Strategies 10 Strategic Recommendations Issues: As one thoroughly analyzes the Loblaw’s Companies Ltd. it is identified that Loblaw’s success is determined by their willingness to serve their customers with high quality products at a level of customer satisfaction at every location. Loblaw’s has transformed the persona of a general grocery store to a superstore with all the necessities for their customers. With such drastic changes and new implementations Loblaw’s success in Canada is correlated to their innovated ways to attract their customers. But there is always room for improvement, especially in a market where new entrants are low but large companies can overwhelm. There are three major issues that Loblaw’s can address to further succeed in this industry. Firstly, Loblaw’s is lacking global presence, by narrowing their market strictly in Canada. Secondly, the Loblaw’s competition...
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...Criticisms of Walmart: Pricing and Competition Issues Sued by many competitors for predatory pricing (intentionally selling a product at low cost in order to drive competitors out of the market) Investigated by the Federal Competition Commission for “monopolistic practices”. Walmart pressured suppliers to sell goods below cost or at prices significantly less than those available to other stores in 2003, the German High Court ruled that Wal-Mart's low cost pricing strategy "undermined competition" and ordered Wal-Mart to raise it’s prices Wal-Mart sells all its stores in Germany. Employee and labor relations Wages: A Substantial Number of Wal-Mart Associates earn far below the poverty line. In 2001, sales associates, the most common job in Wal-Mart, earned on average $8.23 an hour for annual wages of $13,861. The 2001 poverty line for a family of three was $14,630. A 2003 wage analysis reported that cashiers, the second most common job, earn approximately $7.92 per hour and work 29 hours a week. This brings in annual wages of only $11,948. Wal-Mart Associates don't earn enough to support a family. For basic needs, the average 2-person family needed $27,948 in 2005. Wal-Mart claimed that its average associate earned $9.68/hr in 2005 ($17,114 annually) Sam Walton - "I pay low wages. I can take advantage of that. We're going to be successful, but the basis is a very low-wage, low-benefit model of employment...
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...Kroger Cody Butler, Ahmad Damra, & Doug Edwards Sullivan University Kroger Since it first began in the late 1800’s, Kroger had been a store motivated to expand its role in the community. After first starting out by selling grocery items to customers, it began to also sell bakery items and opened bakeries within the grocery store itself. This was a big convenience for the consumer to be able to shop for most of their grocery items within the same store. The company then set its sights on the meat industry by purchasing several meat markets and packing plants. This allowed them to provide cuts of meat to their customers so that they didn’t have to go to another store to purchase meats. Once again, they found a needed service and expanded their role to capitalize on it. [ (Kroger, 2012) ] Over the years, Kroger’s expansion has followed much of the same lines. Once a service or need in the community is identified, the company researches their role and how they can provide this service within the Kroger store. Some ideas stay and are profitable while others fall by the wayside due to being too costly or not the right fit for the Kroger store. Consumers respond to these services and keep coming back to the Kroger store for their grocery needs as well as other needs that are not grocery related. [ (Kroger, 2012) ] One example of this is the Kroger pharmacy. This service allows the customer to buy their pharmacy items from Kroger and their prescriptions can be...
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...The key factors for success in this industry are: *Compared together, Wal-Mart, Target and Kmart are very close competitors. They are all retail-variety discount stores making their existence known throughout the world, except Target, which you cannot find globally. These three companies are constantly vying for the reputation as the lowest priced retailer. *In the competitive profile matrix, the most critical success factor would be advertising with this, Target was scored the highest with a rating of 4 while both Wal-Mart and Kmart are rated as a 3. This is because Target does a lot more advertising then Wal-Mart and Kmart. *The next most critical success factor is global expansion with Wal-Mart was found to be rated the highest with a 4 with Kmart was rated next with a 3, and finally Target rated as a 2 because Wal-Mart was the highest are found around world, than Kmart was next because they are only found in a few other countries. And finally Target, ranking last, does not have any global branches that insignificant weakness. *Price competitiveness and financial position with Wal-Mart, the highest in both cases with a 4, is above all competitors. This is because they price reasonably with lower prices then all the competitors and their financial position is great. Target is next with a rating of 3 in both price competitiveness and financial position because somewhat high prices and people tend to see that and want to go shopping elsewhere like Wal-Mart. Their financial...
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...Kmart has made some horrible decisions in the past few years. They have numerous competition throughout America from Wal-Mart and target. Kmart failed to keep with the times and update their stores. The store designs have not changed since their inception and it seems that no money was ever invested into modernization. Even their cash registers were out of date and obsolete from the current systems in use by Wal-Mart. “No matter what Sears said, they weren’t keeping the promise. Consumers are pretty sophisticated, and they walked into these stores and it was the same old place … without the freshness, the excitement or the interactivity of the experience.” (Knutson, 2011). Kmart is owned by Sears Holding. In recent years Sears has closed dozens and dozens of Kmarts. I believe this is due to the lack of interest in the store…the old dirty feel of Kmart is not on par with that of Wal-Mart or Target. The assumptions by Kmart management were that sales would continue without change to the store as they had for decades. The second assumption was that acquisition of other chains such as Walden, Borders, and Office Max would boost their sales by expanding their product sales line. The first assumption was incorrect because Kmart failed to recognize their competitor’s advantages. One key advantage was simply the new updated feel and cleanliness in superstore shopping that Wal-Mart offers. The second assumption was incorrect also because during Kmart’s buying spree they failed...
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...Z01_JOHN2020_09_SE_EM18.QXD 10/13/10 9:09 Page 658 CASE STUDY Tesco: from domestic operator to multinational giant Michelle Lowe and Neil Wrigley This case considers the emergence of Tesco plc as one of the world’s leading multinational retailers. In a remarkable 10-year period, Tesco has transformed itself from a purely domestic operator to a multinational giant – with subsidiaries in Europe, Asia and North America – and in 2009 had 64 per cent of its operating space outside the UK. Examining market entry into Asia in more detail, the case compares ‘success’ in Thailand and South Korea with ‘failure’ in Taiwan. It also considers ‘a high risk gamble’ in Tesco’s entry into the US market, long considered to be a graveyard of overambitious expansion by UK retailers. ● ● ● Introduction In April 2009, Tesco, the UK’s largest retailer and private sector employer of labour, announced annual sales for 2008/09 of almost £60 billion (x66bn or $90.2bn) together with profits of £3 billion (x3.3bn or $4.5bn). After a dramatic decade-long transformation from purely domestic operator to multinational giant, Tesco now had a remarkable 64 per Source: Getty Images. cent of its operating space outside the UK, was developing increasingly strong businesses across 11 Asian and European markets, had a rapidly expanding ‘start-up’ subsidiary operating in the western USA, and had announced its entry into the Indian market. Moreover, as signalled in both the title of its Annual Report...
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...S.W.O.T ANALYSIS Principles of Management 303 September 23, 2012 S.W.O.T ANALYSIS Target was not always called by that name; the company originally was founded in Minneapolis, Minnesota. It used to be known as Dayton Dry Good Company which was formed in 1902. “Target was once just a small piece of the much larger Dayton Hudson Corporation, a retailer with roots in the late nineteenth century. In 2000, Dayton Hudson (DH) officials renamed the company, the Target Corporation” (Target Reference). Since May of 2010, every state in the United States, besides Vermont has a Target or Super Target. Target is the 2nd largest Retailer in the United States besides Wal-Mart and it is ranked 30th on the Fortune 500 companies. “Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less”. Target.com. (2011). “One of the strongest features about Target is that the consumer enjoys being there. There store is always clean and the way it is set up is so aesthetically pleasing it's as if each shelf were specifically shelved just for you. Even the setup of the store is maneuverable and the bright colors draw you into the store. What makes the experience even better is that there are great deals here. Jasmine Watts”. (July 22, 2009). Target is well known for its cheap prices and variety of items for sale. You can shop...
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...Jeaneen Pitts Target SWOT Analysis and Porter’s Five December 3, 2011 The purpose of this paper is to discuss Target’s strengths, weaknesses, opportunities and threats. This paper will also talk about how Porter’s Five affects Target’s business decisions. Target’s mission statement: “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less brand promise.” (target.com) Strengths: One of Target’s strengths is that it’s one of the largest retail outlets. Target is a one stop shop for its consumers. Target also focuses more on product quality and still tries to offer low prices. Target compares prices on over 25,000 items to make sure that they are offering their customers the best price. Target also accepts manufacturer’s coupons making them even more competitive. Target prides itself for focusing on supplier diversity. Target has developed relationships with minority and women owned vendor and suppliers. Target is focused on becoming the industry leader in supplier diversity. (target.com) Weaknesses: Target unfortunately has no international presence; all of their 1,763 stores are located in the U.S. Target’s focus on quality products more so than low prices is also considered a threat. Consumers may tend to shop at Wal-Mart or...
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...Wal-Mart Stores, Inc. After reading and analyzing the case pertaining to Wal-Mart, I was honestly amazed of how it started and how it was built. Sam Walton started a legacy that worked well for the company. I believe that the policies he started made Wal-Mart as desirable of a store as it is today. Sam used different ideas and methods in order for his store to be the best there is. But what captured my attention was the way he treated his associates. Unlike other stores or companies, he called them “associate” rather than “employees. He treats his associates in a manner in which he wants his customers to be treated by them. It has become a very effective tool since how he treats his associates reflects on how his associates treat their customers. He gives them responsibilities instead of monopolizing the work. He gives them his trust in which the associates return with diligence and hard work. He believed that it was best to empower them instead of overpowering them. With this in mind, Sam never experienced a union in his stores since all of his associates are very committed in working for him. He also suggested different programs that cater to the needs of his stores as well as his associates. In one of his programs, associates are given the power to voice out their suggestions, complaints and recommendations, be it for the benefit of the stores or of the associates. Sam never failed to support, recognize and reward associates in the management of...
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...Memo To: Marketing Department From: Group C Date: August 1, 2013 ------------------------------------------------- Re: Kelly Service Marketing Team Recommendation for Wal-Mart As the future of hiring employees changes too more temporary and contract workers to reduce cost, Wal-Mart is no exception. Wal-Mart even labels these temporary employees as “Flexible Associates”, spokesman Dave Tovar says temporary employees allow store managers to provide permanent workers a more reliable schedules. (Huffington Post August 2, 2013). Along with a more reliable schedule for permanent employees Wal-Mart saves big bucks with no benefits and lower wages. History of Walmart Sam Walton opened the first Walmart in 1962 with the vision of low prices anytime anywhere. From there Sam Walton opened Sam’s Club wholesale stores and Walmart Superstores combining grocery and merchandise. In 1991 Sam’s Club went international opening in Mexico and with the purchase of Woolco in 1994 Walmart continued its international path opening in Canada. Walmart did not stop there with continued expansion into twenty-seven countries Walmart has over 2.2 million associates and serves over 200 million customers every week. (2012 Wal-Mart Stores, Inc.) Walmart Services and Products Walmart Charities and Scholarships In 2012 Walmart’s giving surpassed one billion dollars worldwide. Through Hunger Relief and Healthy Eating programs, plus a sustainability plan showing people how to live...
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...Suggestions Walmart needs to adjust to the Chinese market, while leveraging its source of competitive advantage. This requires a delicate balance. At the US, the brand Walmart is associated with low price rather than quality. In China, where everyone is going for low prices and providing low quality to do so, Walmart’s own brand could be an assurance for low prices but with quality by making the Walmart name about more than just retailing. The suggested strategy in the 2008 Walmart supplier meetings shows that it’s heading in that direction (Business Week). This also follows Gome’s strategy of renaming its suppliers to their own brand (Business Week), but goes beyond it as the foreign brand in China is already associated with higher reliability and quality assurance. This actually holds true in China were retailers do a better job of enforcing supplier quality than the local regulations. With that, Walmart is still able to use its expertise and knowledge in supplier negotiation and distribution system to keep costs down. Although Walmart is a Joint-Venture, the sources do not mention any attempt to leverage the local partner to meet the local market, which seems the opposite to some other joint ventures discussed like Danone and Wahaha. Working together with the local partner to understand where and how the local regulations can be used or adjusted for Walmart’s success and gaining a stronger hold of the potential customer’s heart might help Walmart’s growth and dominance in...
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