Académique Documents
Professionnel Documents
Culture Documents
• History Overview
- Vision, Mission and Goals
•Internationalization
-Driving Forces
-Entry decisions
-Examples of success and failure
•Suggestions
History Overview
• 1962: Walten Brothers opened fist Walmart in
Arkansas
• 1970: Walmart became public
• 1990: 1st Nationalretailer
• 1991: International Expansion
• 1993: Creation of “Great Value”
• 2003: Largest corporation in the world
• 2012: 50th Anniversary
Mission Statement, Vision, Goals, & Purpose
Mission Statement:
To help people save money so they can
live better
Goal:
Becoming in an international brand
Vision:
“If we work together, we’ll lower the Advertising slogans:
cost of living for everyone…we’ll give
Save Money. Live better
the world an opportunity to see what
it’s like to save and have a better life.
Customer Target
• “Wal-Mart's targeted demographic:
– Modest incomes
– Shoppers interested in prices
• But the customer base is changing
Internal & External
Analysis
Firms’ Value Chain
General administration
Procurement
Human resources:
- Based on Interaction practices between company andemployees
-Low pay but other benefits (health care plans, retirement plans, or promotion opportunities)
-2.2 million associatesglobally.
-Every time we open a supercenter, we provide roughly 300jobs
-Women57% of our U.S. workforce, 27% of corporate officers, and 20% of our Board of directors.
Techonology development: It is the key factor of the company. It constitutes a competitiveadvantage against
competitors.
- Computer-based technology
POS(Point of sales) system
Satellite System
Procurement:
-Wal-Mart deals directly with manufacturers, by passing all intermediaries.
- EDI : Electronic data interchange
Integrated technology of supplychain Yes Yes Yes Yes Sustainable Compt. adv
Superior logistics system Yes Yes Yes Yes Sustainable comp. adv
STRENGTHS WEAKNESSES
• Diversity in products & services
•Brand image-weak
• Convenient prices & locations
reputation
• Strong market presence
•Low global presence
• Customer loyalty
•Behind rivals in e-
• Strong financial performance
commerce
• Cost and pricing advantages over
rivals
• Good supply chain
EXTERNALFACTORS
Low
Europe:
•Mature Markets
•High Rivalry
•Lack of strong
costumer relationship
What markets to enter?
Asia:
•Most distant
geographically
• Large population
•Emerging Markets
Walmart International
What Strategy to follow
Trans
Global
National
Inter Multi
national domestic
Low High
Local Responsiveness
Mode of entry of International Expansion
Mode of entry of International Expansion
Year Country Mode of Entry
1991 Mexico 50% Joint Venture Cifra
1994 Brazil 60% Joint Venture Lojas Americana
1994 Canada Acquisition Woolco (weak player)
1995 Argentina Wholly owned Susbidiary
1996 China New opening, JV, Acquisition
1998 South Korea Adquisition
1999 U.K. Acquisition of ASDA
2002 Japan Acquisition Seiyu
2002 Germany Acquisition of Wertkauf andSpar
2007 India Joint Venture
2011 Southern African Countries Acquisition of Massmart HoldingLimited
Examples of International Success
• Mexico:
– Largest Walmart’s foreign presence (68%)
– 38% Retail Market Share in Mexico
• Canada
– One of the most successful international expansion
– Acquired Woolco Stores and changed structure
• South Korea
– Very demanding customers
– Did not customized to market
– Big companies also fail in South Korea
Key Success Factors
• A supply chain with integrated technology
• Decentralized operations
• Worldwide learning:
– Advantages of interconnected economies.
• Adaptation:
– To locally customize processes and services