...BRIEF: Wal-Mart Store, Inc: Dominating Global Retailing 1. How does the retail structure help explain Wal-Mart’s success? * Suppliers are not allowed use middle agents to negotiate price. Wal-Mart can get lowest price and ignore price increase, even charge suppliers for delayed or missed delivery. * Customers save money for the low price on Wal-Mart merchandise. They are globally based. Data mining help the market cater customers’ preference at different locations. * Employees are from local labor to lower the cost. Store locations also attract employees who expect lower salary. Bonus is linked to the store revenue for encouragement. * Entry barriers—logistics supply, economic scale to start the business. Dollar General. * Competitors in the Retailing industry are all over the world, as Carrefour, Ahold, Metro, and Tesco. They compete to share the profit in new emerging markets. * Locations of the stores are suburbs or rural area of major cities for lower cost on real estates and labor. * Inventories are from suppliers and in-store brand. There are always enough inventory. And the supplied goods quality is high; the in-store brand goods price is very low. * Delivery service is the “blood” of the store. Wal-Mart operates its own supply chain to complement the weakness on suppliers’ delivery, as remote area. * Technology utility on monitoring the whole process of inventory and selling...
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...Looking Into WAL-MART The Company Every week, 100 million customers visit Wal-Mart stores worldwide, making it the world’s largest retailers. A leader in the discount industry, Wal-Mart posted $218 billion in sales last year as it continued to specialize in selling discounted household goods. The company has 1.3 million employees working at 3,200 locations in the United States and 1,100 locations in Mexico, Puerto Rico, Canada, Argentina, Brazil, China, Korea, Germany, and the United Kingdom. Wal-Mart aims to instill its logo, “Everyday Day Low Prices” in each and every division. Currently the company is broken down into four divisions: Wal-Mart Supercenters, Discount Stores, Neighborhood Markets and SAM’S Club Warehouses. The magnitude and global presence of Wal-Mart allows it to be a dominant player in the retailing market place. It is essential that fundamental relationships within the industry and the company’s environment need to be analyzed in order to efficiently evaluate the correct market price for the company’s stock (WMT (NYSE)). Industry Outlook Household products, retail drugs stores, and personal care segments are expected to produce above-average revenue growth and increase market share in the coming months. The uncertainty between the U.S. and global economies should not affect the sector because many of the products are basic necessities. The retail sector is expected to perform in line with the overall market in the next 6-12 months...
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...Context: 1. Introduction 2 2. Background of Wal-Mart stores Inc. 3 3. Retail organization internatinalization expension 4 4. International Expansion of Wal-Mart in Maxico,china and canada 5 5. Comparison of Entry Modes 6 6. comparison of Opportunities 7 7. Final touch 8 8. Conclusion 9 9.Bibliography 10 1. Introduction: Being present and having to enter foreign markets is for many companies natural, while for other it is a new challenge that they have to face. This challenge, known as market entry, consists of three major decisions: where to enter, when to enter and how to enter different markets. Some companies are forced to internationalize in the early stages of their life due to small saturated home markets, while other companies choose to go abroad because of the great opportunities new markets might bring (Peng, 2006). Once deciding to go abroad and choosing the target market and timing, companies' need to consider the choice of entry modes. Generally, to choose international firm there are six different entry modes: exporting, turnkey projects, licensing, franchising, joint ventures, wholly owned subsidiary (Hill, 2004). Each entry mode its distinctive characteristics (see, e.g., Hill, 2004; Hill, et al, 1990; Hill and kim, 1988; Anderson and Gatignon, 1986; Madhok, 1997; Brouthers and Brouthers, 2000; Bishop 2006. Selecting a suitable entry mode is a difficult decision for firms interested in entering a foreign market (Agarwal and Ramaswami, 1992). Sometimes...
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...unfamiliar territories there are many challenges that companies ought to overcome such as cultures, regulation, communication barriers, and so forth. Currently, Wal-mart and Carrefour are dominating in China as the foreign discount stores but they have different strategy to compete in China. Background In 1959, Carrefour was created in Southern France and became international by 1969. “It innovated with the hypermarket format in France in 1963 where it introduced the idea of one stop shopping for food, clothing, electronics, appliances, etc. Although it does not compete in the USA, it has adapted successfully to Latin American and Asia markets” (Arnold, 2002, p. 563). “Now, it serves over 2 billion clients per year in its more than 9,000 stores, which are present in 32 countries across 3 geographic zones. Carrefour is not only the second but also the most internationalized retailer worldwide” (Shiue, Der-Juinn, & Yeh, 2006, p. 171). In 1962, Wal-mart began its story in Northwest Arkansas as the discount store and quickly expanded to the largest family owned business. “It is active in 11 countries and has stores in North and South America, Europe and Asia. It has over 4,400 stores, of which three quarters are in the USA and that still account for 80% of its growth” (Arnold, 2002, p. 564). Currently, Wal-mart Stores is the...
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...the action of contrabandism. This status has caused many issues to our economy and raise the number of crime involving smuggling, drug dealing, contraband… Furthermore, this kind of this action will cause the bad effect to consumer’s benefits and their belief in some kinds of products. Take contraband cigarettes, for example. Not only is contraband cigarettes killing small businesses and threatening the livelihoods of many convenience store owners, but it is also robbing government millions of dollar every year because these are cigarettes that are being illegally imported among countries with absolutely no government inspection, testing, oversight and taxation. Moreover, many organized crime groups use the lucrative trade in contraband tobacco to finance other, more serious criminal activities such as contraband drugs and guns. As a result, we should avoid this type of business that causes severe damages to the development of worldwide economy. WAL-MART INTRODUCTION Wal-Mart's history is one of innovation, leadership and success. Wal-Mart was founded...
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...WALMART SUCCESS IN MEXICO, CANADA AND CHINA: GLOBAL EXPANSION, STRATEGIES, ENTRY MODES, THREATS AND OPPORTUNITIES Lee Yee Mun B1000922 Help College Of Arts and Technology Bachelor of Science in Collaboration with Southern New Hampshire University, USA lemon_0611@hotmail.com Rashad Yazdanifard Faculty of Management, Multimedia University, Cyberjaya, Malaysia. rashadyazdanifard@yahoo.com 1 ABSTRACT Global expansion has been gaining a lot of attention. There are many important factors to be considered in the decision-making process such as business strategies, entry modes, and threats and opportunities in the markets. Appropriate strategies will minimize the risk of failure in international markets. The right business strategies and entry modes employed will increase the firm’s chances of success and influence the future of the retailer. Key words: global expansion, business strategies, entry modes, threats, opportunities, Walmart 1. Introduction The internalization of the retail industry has been researched widely, and majority of these studies have described the motivations and scales for international expansion by retailers (Akehurst & Alexander, 1995; Williams, 1992). Many models of internalization explains the sequence of foreign expansion, showing that companies who go international will do better in foreign markets that are similar to their domestic markets. This was why Walmart chose to enter the markets of Canada and Mexico (Johanson...
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...Letter of Transmittal 10thJanuary, 2013 Mr. Tajuddin Ahmed Course Instructor, HRM-370, School of Business, North South University Subject:Case report on ‘Wal-Mart Stores Inc: Dominating Global Retailing’. Dear Sir, We are truly privileged to have you as our instructor in HRM-370: “Managerial Skills and Development” and we are pleased to inform you that, we have been able to meet the schedule to complete the case analysis on “Wal-Mart Stores Inc.: Dominating Global Retailing”. We have tried to employ our best knowledge to analyze the case as meticulously as possible and it sure had offered us the opportunity to enhance our knowledge in regards to HRM-370. Furthermore, if you have any queries about the case report, please feel free to ask any of the group members for further cooperation. Sincerely Yours, RonikaKarmaker | (ID#111 0750 030) | | TanjiaHaqueNirjhar | (ID#111 0137 030) | | Sunny Isnain Hassan | (ID#103 0692 530) | | Ankur Chandra Kuri | (ID#102 0831 030) | | SaifuddinZiku (ID#103 0157 030) ________________ Table of Contents Executive Summary 3 Background …………………………………………………………………………………..4-13 Needs Assessment …………………………………………………………………………..14 Main Issue ……………………………………………………………………………………….16 Internal/External Needs Assessment…...………………………………........18-29 Existing Arrangements.………………………………………………………………..24-36 T&D Plan …………………………………………………………………………………….37-42 Proposed...
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...Wal-Mart SWOT Analysis Kara Groff Table of Contents: Overview……………………………..………..page 3 Strengths………………………………....…….page 4 Weaknesses…………………………...….…….page 6 Opportunities...............................................…...page 8 Threats…………………………………....……page 10 Recommendations…………………………......page 12 References……………………………….…….page 13 Student: Faculty Member: Kara Groff Dr. David J. Burns 2015 Cleneay Ave. Xavier University Marketing Department Norwood, OH 45212 3800 Victory Parkway (419)-656-1234 Cincinnati, OH 45407 GroffKC@Xavier.edu (513)-745-3956 Burnsd@Xavier.edu Overview Wal-Mart was founded in 1962 by Sam Walton when he and his brother James “Bud” Walton opened the first Wal-Mart Discount City in Rogers, Arkansas. Since then, Wal-Mart has grown to be the second largest company in the world. In the United States, the company includes Wal-Mart discount stores, Supercenters, Neighborhood Markets, and Sam’s Club warehouse membership clubs. The company also has many international operations. Wal-Mart is considered a variety store which focuses on low prices featuring apparel as well as hard goods, and has been committed to upholding their basic value of customer service. Advances in technology have contributed a great deal to the growth of Wal-Mart. Highly automated distribution...
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...Wal-Mart: Strategic Plan [pic] Strategic Plan Saren Thompson BUS 413 TABLE OF CONTENTS Introduction Page 3 Mission Statement Page 4 Macro-Environmental Analysis Economics Page 5 Demographics Page 6 Socio-Culture Page 8 Political/ Regulatory Page 11 Technological Page 13 Micro-Environmental Analysis Industrial Page 14 Markets Page 16 Competition Page 18 Supplier Page 19 Resources Page 20 Preferences Page 22 Opportunities and Threats Strengths and Weaknesses Page 23 Opportunities and Threats Page 25 Opportunity Analysis Page 27 Alternative Strategies Formulation Page 28 Ranking Strategies Page 28 References Page 29 INTRODUCTION Wal-Mart is the top retail company in the United States and has grown from a small customer centered store in Arkansas to an International Retail Store. This company was founded in the 1962 by Sam Walton. Walton and wife Helen put up 95 percent of the money for the first Wal-Mart store in Rogers, Arkansas. He traveled abroad to study retail and believed it was the future. His company began a success and the Wal-Mart empire began when it was incorporated October 31, 1969. Wal-Mart stock was first traded over the counter as publicly-held company in 1970. Since Wal-Mart has had eleven 100 percent stock split as of March of 1999. The company has grown to new levels and I hope to introduce and inform throughout this paper. ...
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...A09-04-0012 Wal-Mart Stores Inc.: Dominating Global Retailing Mr. Lee Scott could afford the look of confidence. He had just spoken to investment analysts about the phenomenal results from the second quarter of 2003. Despite the general weakness in the world economy and the uncertain environment that prevailed, Wal-Mart had reported sales growth of 11%, amounting to $6.4 billion. The company’s associates were indeed doing the Wal-Mart cheer in faraway places like Germany, South Korea, China, and the United Kingdom. In three decades, it had grown from its rural Arkansas roots to become the world’s largest company, and quite possibly the most powerful retailer. The meteoric growth did bring with it a fair share of problems. At a macro level, there had always been questions about the ability of Wal-Mart to sustain the pace of growth it had demonstrated in recent years. Once the company vaulted over the $200 billion level in annual sales, it was clear that incremental growth would be challenging. There was a nationwide backlash against big-box retailers, and Wal-Mart was front and center in that controversy. Some of the upstart chains such as Dollar General were gearing up to nip at the heels of Wal-Mart. They claimed that customers felt lost inside the cavernous stores of Wal-Mart and that they would gladly shop at Dollar General stores, which, although much smaller, offered comparable low prices. The emerging markets that held a lot of promise were being bitterly contested by...
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...Looking Into WAL-MART The Company Every week, 100 million customers visit Wal-Mart stores worldwide, making it the world’s largest retailers. A leader in the discount industry, Wal-Mart posted $218 billion in sales last year as it continued to specialize in selling discounted household goods. The company has 1.3 million employees working at 3,200 locations in the United States and 1,100 locations in Mexico, Puerto Rico, Canada, Argentina, Brazil, China, Korea, Germany, and the United Kingdom. Wal-Mart aims to instill its logo, “Everyday Day Low Prices” in each and every division. Currently the company is broken down into four divisions: Wal-Mart Supercenters, Discount Stores, Neighborhood Markets and SAM’S Club Warehouses. The magnitude and global presence of Wal-Mart allows it to be a dominant player in the retailing market place. It is essential that fundamental relationships within the industry and the company’s environment need to be analyzed in order to efficiently evaluate the correct market price for the company’s stock (WMT (NYSE)). Industry Outlook Household products, retail drugs stores, and personal care segments are expected to produce above-average revenue growth and increase market share in the coming months. The uncertainty between the U.S. and global economies should not affect the sector because many of the products are basic necessities. The retail sector is expected to perform in line with the overall market in the next 6-12 months...
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...ORGANIZATIONAL STRUCTURE7 HISTORY OF WAL-MART8 INDUSTRY ANALYSIS9 MARKETING ANALYSIS10 MARKET SEGMENT11 MARKET SHARE13 DOMESTIC COMPETITORS14 INTERNATIONAL COMPETITORS15 CURRENT PRODUCTS16 PRODUCTS16 BCG MATRIX17 STRATEGY AND IMPLEMENTATION SUMMARY19 COMPETITIVE EDGE20 MARKETING AND SALES STRATEGY21 COST STRATEGY21 CAPITAL STRUCTURE STRATEGY21 FINANCIAL ANALYSIS22 GENERAL OVERVIEW22 OPERATING EXPENSES AND NET SALES22 OPERATING INCOME23 FREE CASH FLOW23 ACCOUNTING ASSUMPTIONS AND METHODS23 INVENTORIES23 DEPRECIATION AND AMORTIZATION24 GENERAL STRENGHTS24 ACCOUNTING ASSUMPTION AND METHODS25 EVOLUTION AND CAUSE FOR THE CHANGES26 KEY FINANCIAL RATIOS27 LIQUIDITY RATIOS28 PROFITABILITY RATIOS28 DEBT RATIOS29 OPERATING PERFORMANCE RATIOS30 ANALYSYS OF RISK31 FX AND INTEREST RISK32 SOLVENCY RISK33 COMPETITORS ANALYSIS34 SWOT ANALYSIS37 RECOMMENDATIONS38 BIBLIOGRAPHY39 INTRODUCTION Walmart Stores, Inc. (WMT) is an American public corporation that runs a chain of large discount department stores and a chain of warehouse stores. Walmart operates more than 8,692 retail units across three business segments of retail stores worldwide that offer a wide array of general merchandise including groceries, apparel, electronics, and small appliances. In addition, the company is the world's largest retailer and grocery chain by sales and just over half of the company's sales comes from grocery items. Over 54% of the company's stores are located in the United States...
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........4 VISION STATEMENT................................................................................................................................5 MISSION and OBJECTIVES.......................................................................................................................5 COMPANY SUMMARY................................................................................................................................6 OWNERSHIP....................................................................................................................................................6 ORGANIZATIONAL STRUCTURE..........................................................................................................7 HISTORY OF WAL-MART..........................................................................................................................8 INDUSTRY ANALYSIS.................................................................................................................................9 MARKETING ANALYSIS...........................................................................................................................10 MARKET SEGMENT....................................................................................................................................11 MARKET SHARE.....................................................................................................................................13 DOMESTIC COMPETITORS 14 INTERNATIONAL...
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...26/05/2005 14:05 Page 563 section 4 case studies cases 4.1 Wal-Mart’s German Misadventure 4.2 Handl Tyrol: Market Selection and Coverage Decisions of a Medium-sized Austrian Enterprise 4.3 Blair Water Purifiers to India 4.4 A Tale of Two Tipples 4.5 Kellogg’s Indian Experience 4.6 Strategic Alliances in the Global Airline Industry: from Bilateral Agreements to Integrated Networks 4.7 GN Netcom in China 4.8 IKEA: Entering Russia 4.9 The ‘David Beckham’ Brand 563 571 574 583 586 590 594 599 604 case 4.1 Wal-Mart’s German Misadventure I don’t think that Wal-Mart did their homework as well as they should have. Germany is Europe’s most pricesensitive market. Wal-Mart underestimated the competition, the culture, the legislative environment. — Steve Gotham, retail analyst, Verdict Retail Consulting, October 20021 We screwed up in Germany. Our biggest mistake was putting our name up before we had the service and low prices. People were disappointed. — John Menzer, head of Wal-Mart International December 20012 ‘Don’t look now:’ low prices all year round! With thanks to Walmart 563 IntMk-CStud-4.qxd 26/05/2005 14:06 Page 564 section 6 case studies section 4 German blues For the world’s largest retailing company, Wal-Mart, Inc., the German market was proving difficult to crack. By 2003, even after five years of having entered Germany, Wal-Mart was making losses. Though Wal-Mart did not reveal these figures, analysts estimated losses of around...
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...CONSUMER BEHAVIOUR IN THE INDIAN RETAIL SECTOR CONSUMER BEHAVIOUR IN THE INDIAN RETAIL SECTOR PROJECT REPORT ON Submitted By PATHAN SHAHID KHAN UNDER THE GUIDANCE OF Prof. Rafana Kazi in partial fulfilment for the award of the degree of MMS Anjuman-I-Islam’s Allana Institute of Management Studies Mumbai 400 001 2014-15 APPENDIX 1 Anjuman-I-Islam’s Allana Institute of Management Studies Badruddin Tyabji Marg, OFF. 92, Dr. D.N. Road, Opp. CST, Mumbai 400 001 Certificate This is to certify that Pathan Shahid Zuber Khan, a student of Anjuman-I-Islam’s Allana Institute of Management Studies (AIAIMS) pursuing final year in MMS has completed the dissertation report on Market analysis of LG consumer durables in the 2014-15 Date:__________________ Place:__________________ _____________________Prof. Rafana KaziProject GuideAIAIMS | ________________________Dr. Lukman PatelDirectorAIAIMS | DECLARATION Project Title: Market analysis of LG consumer durables Submitted on: Under the Guidance of: Prof. Rafana Kazi College: Allana Institute of Management Studies (AIAIMS) This is to declare that I, Pathan Shahid Khan, student of Allana Institute of Management Studies (AIAIMS) IVth semester (Marketing) hereby declare that I have completed the project on Market analysis of LG consumer durables in the Academic year 2015 The information submitted is true and original to the best of my knowledge. Date: <Date of Submission> Place: Mumbai (SIGNATURE) Pathan Shahid...
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