Monday, August 8, 2011

Essay on Wal-Mart

Essay on Wal-Mart


1. Using Wal-Mart's world fame to expand European and Asian markets. The integration of EU countries represents a very good opportunity, because it will provide a huge marker. The rapid growth of Asian economy will create substantial demands. Wal-Mart's reputation of high quality with lowest prices will gain it the identification from these markers.

2. Exert buying power to achieve cost leadership. The large purchasing amount makes Wal-Mart become the cost lead in America through the successful "Buy American" program. The next program might be "Buy Asian", because Asian produced goods are no longer considered low process but poor quality. It is high quality but low prices now.

3. Do main the on-line retailing through advanced IT AND full range categories. On line shopping will be the next hot trend of the world, and Wal-Mart should use its advanced IT system and everything offering selling notion to consolidate its NO. 1 position of on-line retailer.

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1. Using strong image and cost advantages to prevent possible competitors moving into the Asian market.

The NO.1 world discount retailer and its sophisticate value-chain system as well as the huge buying power will make other competitors to think carefully before they enter the Asian market.

2. Establish joint ventures in foreign markets. That will give Wal-Mart several advantages:

. To know other's culture better;
. To deal with foreign governments effectively;
. To get more benefits from the foreign government through the foreign parties;
. To manage foreign staff efficiently.


1. Give staff more benefits depending on the growth of Wal-Mart (e.g. share option) to soothe labor troubles.

To offer employees the share option may be a good way to redeem their low income. That will also encourage staff morale to work hard towards the aim of sustainable growth of Wal-Mart. Because the more profitable the company is, the higher the stock price will be.

2. Using cost leader position to gain market share from other competitors. Wal-Mart is usually able to under price its competitors about 15%, and thus it is a powerful weapon to from the market share from competitors who have already occupied the market, even though Wal-Mart entered into the market late (e.g. Asian).

3. Adapt the superior value chain system in European and Asian market. Although the American style value chain does not fit these two markets, it is still hopefully to form an improved value chain based on the adjusting the old system to adapt the new situations.


1. Win foreign markets by through study of local culture, demands etc. It is true that in one country different areas have various cultures. Thus, knowing the customers well is the key.

2. Improve the employer-employees relationship. It is not only a "work and pay" relationship, but also a mutually developing relationship.

3. Good cooperation and c communication with foreign government. It is the government who sets the rules, so a mutually trusting and beneficial relationship is always helpful.

4. Reconstruct the too aggressive image and to be a contributor if local communities. Having the experience of Wal-Mart killing local retailers, some people fear Wal-Mart becoming the "sole rule setter" in the local communities. It is the time for Wal-Mart to change the negative influence. It needs to be more like a contributor rather than an invader to the local communities-----Wal-Mart brings people more benefits than harm.

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