First of all, about this portfolio, the extent of globalization in global retailing and civil aero engine manufacturing is main discussion statement. The PESTEL, CAGE distances and Yip’s driver theories also would be applied to support this discussion. Moreover, different firms of these two industries would be used to illustrate above concept. Wal-Mart, Carrefour and Tesco will be used to demonstrate global retailing. Then, another industry, civil aero engine manufacturing, Pratt & Whitney and GE Aviation will be used to exemplify. When the companies want to keep their development within the competitive economic environment, they should have a plan. This plan is not only integrate the condition that means the competence of company, with the outside opportunities. And also guide the internal resources management to operate in coordination with different management action. The purpose is to seek customers’ value, choose a right business strategy, also to enhance the enterprise competitive advantage and make the advantage be sustainable. It is corporate strategy, which is about the long term view for the top managers to make strategic decisions for taking action to change firm’s position (Oliver, 2001). Moreover, strategic management is a way to “catch” the opportunities within the complicate environment, avoid the risk to face threats in the external environment, enhance strength, and hide the weakness. Besides these, then, implement strategies and review the performance (Jones, 2008). Finally, make the company to gain profit and have sustainable competitive advantage, expand market share lastingly in the market.
2. Strategic groups of global retailing industry
Wal-Mart, Carrefour and Tesco have been chosen to explain how they global in the global retailing market. These three are the “big three” at the top 250 retailers of 2010 (Deloitte.com, 2012). The reason to choose these three is because their scope is largest. Not just the quantity of store, moreover, different store size of their market segment also is bigger scale than other local grocery retailers. And have an integrated grocery wholesaling function that they buy the product from the suppliers directly (Competition Commission, 2008). Besides, they also have hypermarket, which is a big store that include groceries and merchandise product. Tesco, it is a brand operated in England near hundred years. Now it becomes the third largest grocery retailer over the world. At 1992, it began to develop stores at France, then, it also expands its brand to other countries of Europe, Ireland and East- Asia between 1990s. Around 14 nations that Tesco has business at there. This company has over 30% market share in United Kingdom, besides, its business has been developed at Asia, Europe and North America. (Tesco.com, 2012) Carrefour is a retailer who has business at 29 nations and 11,000 stores under its brand. (Carrefour.com, 2012) It comes from France, established at 1959. The main competitors are Tesco and Wal-Mart, because it also is the biggest scale grocery retailer nowadays. It has most successful market in China, Spain and Brazil, since it has developed business in United Kingdom at 1973. On the other hand, this firm has business at Asia, Europe, Africa and America, however, no business at United Stated. Wal-Mart, an American brand, this firm has operated in 50 states of United Stated, and become the biggest retailer of this nation at 1990. Nowadays, it has been the number one global grocery retailer in the world. It has labor over 2 billion people, and has about 8,500 store over 15 nations. (Walmart.com, 2012)About globalization, it left the local market at 1991. Mexico is the first path to develop. Over 20 year. This brand can be found at many countries in Europe, Asia, of course America. Besides local market, this company gets most successful in England, South America and China (They launch first store in china at 1996, now,...
Please join StudyMode to read the full document