Expansion of Wal-Mart in Asia
Introduction
In this assignment, we decided to choose Wal-Mart as our assignment’s company. Wal-Mart was the biggest retail corporation in the world in terms of its revenues in 2013. The main reason of choosing Wal-Mart is because it’s courage to open up many new retailers in other foreign countries market. Besides, Wal-Mart always is a leader in retail industry because it’s maintained through continuous innovation behavior. In order to achieve the commitment “everyday low prices to consumer”, Wal-Mart has established an excellent procurement and delivers system. Wal-Mart also has their own excellent information system management and sharing information with suppliers to maintain a good inventory control.
Wal-Mart is a family owned business, also known as a family limited liability company. (Kennon, 2014). Sam Walton decided to expand the business with chosen a wholly owned subsidiary mode for his initial entry due to it offers a higher degree of control and the speed of expansion tend to be more measured for organic growth. (Conglomerates & Spinoff, 2014). In addition, those product that sell in the Wal-Mart store can be categorized divided into six categories which are entertainment, grocery, health and wellness, apparel, hardlines, and household items. We will more focus on commodity product in our assignment due to commodity is the most common product for our daily use and commodity is the most profitable in Wal-Mart.
United States (U.S.) just represents 4% of world's population, Wal-Mart already saturated domestic market. Moreover, Asia is the world’s largest and most populous continent for Wal-Mart to invest. (Continents, 2013). Whenever wall-mart can find a strategic location in Asia, they should establish the largest retailer in the town. Therefore, there will be less competitors will enter into the market at that location. Furthermore, Asia is a good choice for doing offshoring due to emerging markets at here with a lower disposable income offer
In this assignment, we decided to choose Wal-Mart as our assignment’s company. Wal-Mart was the biggest retail corporation in the world in terms of its revenues in 2013. The main reason of choosing Wal-Mart is because it’s courage to open up many new retailers in other foreign countries market. Besides, Wal-Mart always is a leader in retail industry because it’s maintained through continuous innovation behavior. In order to achieve the commitment “everyday low prices to consumer”, Wal-Mart has established an excellent procurement and delivers system. Wal-Mart also has their own excellent information system management and sharing information with suppliers to maintain a good inventory control.
Wal-Mart is a family owned business, also known as a family limited liability company. (Kennon, 2014). Sam Walton decided to expand the business with chosen a wholly owned subsidiary mode for his initial entry due to it offers a higher degree of control and the speed of expansion tend to be more measured for organic growth. (Conglomerates & Spinoff, 2014). In addition, those product that sell in the Wal-Mart store can be categorized divided into six categories which are entertainment, grocery, health and wellness, apparel, hardlines, and household items. We will more focus on commodity product in our assignment due to commodity is the most common product for our daily use and commodity is the most profitable in Wal-Mart.
United States (U.S.) just represents 4% of world's population, Wal-Mart already saturated domestic market. Moreover, Asia is the world’s largest and most populous continent for Wal-Mart to invest. (Continents, 2013). Whenever wall-mart can find a strategic location in Asia, they should establish the largest retailer in the town. Therefore, there will be less competitors will enter into the market at that location. Furthermore, Asia is a good choice for doing offshoring due to emerging markets at here with a lower disposable income offer