Hanoi, November 11st, 2012
I. ANALYSIS FRAMEWORK
1. Strategic Business Units (SBUs) identification
2. Determination of the specific market for SBU
3. Time selection for this SBU's market.
II. COMPETITIVE POSITION AND MARKET POTENTIAL ANALYSIS
1. Competitive scope
2. Competition intensity evaluation
3. Wal-Mart competitive position and market potential evaluation. III. WAL-MART DEVELOPMENT RECOMMENDATIONS
1. Generic strategy
2. International strategy
3. Relevance of cooperation strategy
4. Marketing process
5. Marketing Mix
I. ANALYSIS FRAMEWORK
1. Strategic Business Units identification.
Before studying deeply about competitive position and market potential as well as strategic recommendations of Wal Mart, we want to expose our understanding of the very important part of company in which is called Strategic business units (SBU). Wikipedia, the biggest encyclopedia, says a SBU is a profit center which focuses on product offering and market segment. SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign, even though they may be part of a larger business entity. For this whole Wal Mart case study assignment, we think a SBU is a part of a company for which there exists a specific organizational and industrial manner of serving a distinct market. By the case study of Wal Mart, we all agreed to divide into 3 different segments as 3 big SBUs such as: store segment, Sam's Club segment and international segment. To understand deeply regarding 3 Wal-mart SBUs, we propose the analysis as the below table:
As the international segment is always an interesting topic, we chose this No# 3 SBU to analysis further more in the next steps of this assignment. 2. Determination of the specific market for SBU:
Our analysis will concentrate on the national scale, particularly the Germany market which is a very rare circumstance Wal Mart pulled out of after 8 years developing. 3. Time selection for this SBU's market:
The period of time was from 1998 to 2004. This length of time also was the incorporation and growth period of Wal Mart international strategy.
II. COMPETITIVE POSITION AND MARKET POTENTIAL EVALUATION:
Before going deeper in analysis competitive position and market potential, we take a look at PESTEL framework which is an analytical tool to identify different macro-environmental factors that may affect business strategies, and to assess how different environmental factors may influence business performance now and in the future.
Based on all these analysis above, Germany retail sector is home to a rich and diverse market environment for enterprise in term of Legal, Economic as well as Environment. Beside opportunities, local enterprises also are big threats to those who have plans to extend business to this market. Define the competitive scope
At the first time Wal-Mart came in Germany in 1998, as many markets that it came before, it tried to extend its market by acquiring many hypermarket chain of large local corporation such as Aldi, Wertkauf, Interspar… In our mind, competitive environment of Wal-Mart was Volume.
Key success factors of Wal-Mart
Key success factors for Wal-Mart are low price everyday strategy, multinational marketing capability, managerial in many countries Competitive Force (Porter, 1980)
Market in 2004
Client and competitor force are 2 factors that have much impact because of Germany is new market to Wal-Mart, to extend and develop Wal-Mart need a appropriate strategy to compete with local retail corporations; habit and awareness of German consumers are not the same with one in US and other countries Wal-Mart entered. Evaluate the intensity of the competition
Industry life cycle position
According to the study, the Wal-Mart entered...