Case Study

Topics: Wal-Mart, Supermarket, Discount store Pages: 9 (2524 words) Published: February 28, 2015

Wal-Mart Case Study: Managing Globalization

Feb.2 2014
MENG YANG
1019050119

1. Describe Wal-Mart’s expansion by using its own subsidiaries, IJVs, and IM&As. a. Subsidiaries:
Wal-Mart Stores, Inc. (Walmart), incorporated on October 31, 1969, is engaged in the operation of retail stores and membership clubs. The Company offers an assortment of merchandise and services at everyday low prices. The Company’s operations are reported through three business segments: Walmart U.S., Walmart International, Sam's Club, it also promote global ecommerce.1 Until July 31, 2014, Walmart Stores U.S. has 4,921 total units; Sam's Club (60); Logistics (130); Walmart Realty; Claim Management, Inc.; Walmart Portrait Studios and The Walmart Money Center. Walmart became an international company in 1991 and operate in 26 countries outside the United States. With more than 6,100 stores internationally. Walmart International is currently the fastest growing part of their business. Walmart sought to project an image “as the competitive, one-stop shopping center for the entire family where customer satisfaction is always guaranteed. The most successful of these ventures was Sam’s Club, a warehouse club that targeted customers who purchased wholesale quantities.3 Sam's Club consists of warehouse membership clubs and operates in 48 states in the United States, as well as its online operations. Sam's Club accounted for approximately 12% of the Company’s fiscal 2014 net sales. Walmart Global e-commerce, Walmart has some of the best data scientists and the largest collection of commerce data in the world. Walmart using that to deliver a personalized shopping experience their largest Walmart website: Walmart.com, sees 45 million visits a month and is growing every year. Until now, Walmart operates ecommerce Walmart websites in 10 countries. b. IJVs:

International retail joint venturing strategies have played a formidable role in the expansion plans of many retailers including Walmart. In its first foreign expansion5, Wal-Mart joined Cifra, the largest Mexican retailer, to announce the opening of wholesale clubs in Mexico starting later in 1991. Like Wal-Mart's successful Sam's Wholesale Clubs, the Mexican stores sell electronics, stationery and food, primarily to small-business employees and groups. Wholesale warehouses normally require a membership fee of about $25 a year from businesses and groups whose employees and members can then shop there. They sell most of their goods in bulk at discount prices. Wal-Mart and Cifra said that they expected their partnership to help develop trade between the United States and Mexico, which are holding free-trade talks, which make the deal more attractive. Wal-Mart's president described the move as "an excellent opportunity to work with a quality group of people and enter new markets." Cifra's size and Mexico's proximity also helped attract Wal-Mart, to the joint venture, the analyst said Wal-Mart is doing a very exciting thing by scheduling its first foreign business, the sale of that year rose to $9.3 billion from $6.7 billion. In searching the cheapest suppliers, the story of Walmart in china has move to the center stage. Wal-Mart’s main preoccupation today is not with enlisting more Chinese suppliers, but rather its concern over how to attract Chinese shoppers.7 Walmart sees china as a new frontier, but they also face stiff competition in seeking to conquer the most populous of its U.S while to set strategy for succeed in china, Walmart confronts three strategic imperatives: go global, go native, and go up market. In Japan, Wal-Mart decided the best entry strategy was to join hands with a local partner. Accordingly, in 2002, Walmart paid $46.5 million for a 6.1 percent interest in Seiyu, Japan's fourth-largest supermarket chain. Wal-Mart retained an option to increase its stake by 2007. In December 2002, Wal-Mart announced to raise stake of Seiyu, at the end of 2005, Wal-Mart...

Bibliography: 3. Brea-Soli´s H, Casadesus-Masanell R, Grifell-Tatje´ E. Business model evaluation: Quantifying Walmart 's sources of advantage.Strategic Entrepreneurship Journal [serial online]. January 1, 2015
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