Market Entry Strategies of Wal-Mart

Market Entry Strategies of Wal-Mart Founded in the year 1962, by Sam Walton, Wal-Mart was a single discount store in Rogers situated in the state of Arkansas. Then the growth of the Wal-Mart chain of stores has been tremendous. Initially the chain consisted of 9 stores amounting to a total sale of 1.4 million US dollars and the growth exploded with a overall sale of 118 billion US dollars in the year 1998 and the number of stores amounted to over 2,316 stores. The company also includes discount stores, warehouse outlets offering deep discounts, the whole sale club, supercenters of Wal-Mart. The success story of Wal-Mart is unique in the history of retailing and this success could greatly be attributed to the dynamic leadership of Sam Walton. Its innings in the international arena started when the company inaugurated a store in Mexico in the year 1991. Then the international chain kept on expanding to many nations like Argentina, Canada, Germany, South Korea and Brazil. By the year 1998 the number of international store s of Wal-Mart alone amounted to over 600 and these stores generated a revenue of over 7.5 billion dollars (Wal-Mart Annual report, 2008). The lines of merchandise of Wal-Mart is inclusive of electronics for consumers, goods related to sports, house wares, items for the lawn and the kitchen, apparels, paints, hardwares, items for repairing the automotives and their maintenance, games, grocery, toys, fashion items for homes, goods related to other types of maintenance activities. In the region of the United states, the company plays an important role in the generation of jobs and the number of jobs created by the company amounts to over 800, 000. Apart from this the company is also involved in the supporting of many types of manufacturing jobs in the US and this is being facilitated through the campaign called America first (Wal-Mart Annual report, 2008). International presence of Wal-Mart The company is involved in the serving of over 179 million people in one year and it also possesses over 2 million associates all over the world. The number of stores possessed by Wal-Mart numbers to over 7, 343 and its Sams Clubs are also present in over 14 markets. Hence it is not surprising that it is the biggest retailer in the whole of United States. From the year 2002 the company has been topping the list of fortune 500 list and in the year 2006 it was pushed to the second place, next only to Exxon- Mobil due the rise in the price of oil in that year. In the year 2008, the annual revenue generated by Wal-Mart was over 378 billion dollars (Wal-Mart Annual report, 2008). Hence the company continues to be successful in many nations exploiting the human resources as well as the other resources in the nations. Its idea is to capitalise on the strategy set by the company for global expansions and the present targets of Wal-Mart are the big nations with huge human resources like Russi a and India (Newsweek, 2007). There are lot of strategies employed by the company and it has had a huge impact on the local culture of the retail in every nation it has occupied so far. The major strategies that are used by the company before it ventures into another company are as follows: Establishment of partnership with the organisations and business that are present locally Working in close association with that of the governments of the states and nations Trying to exploit the flourishing purchasing power of the people in the middle class (Newsweek, 2007) Strategies for global expansion The strategy used by Wal-Mart at the multinational level is being modified in such a way that it becomes the transnational strategy and the key aspects of this strategy includes response at the national level, operations at the international level and also taking lessons from the operations that are being conducted on a global scale. The aim of the company in following such an approach is that it should become the best choice for goods that are low cost in the United States as well as the whole world (Fishman, 2006). As the company is basically a retail company it stresses on the concept of orientation of the consumers by acquisition as well as distribution of goods at a low cost and at the same time facilitating learning on a global scale by the process of decentralisation, tackling competition over the borders and by sharing its acquired knowledge. But still in the global business arena, the company is relatively new and on its way to become a leading player. The stress placed by t he company on the concept of national response has to an extent, brought about reductions in the operational efficiency of the company because it was not able to accomplish economy of scale which is enjoyed by the customers when it comes to the products that are standardised. The company is involved in the formulation of blueprints for the managers when it comes to the strategies which they are supposed to follow (Coleman, 1999). According to the needs as well as the culture of the people there is a high level of adaptation and the company has its location which is proximal to its market. The company also shows a lot of sensitivity when it comes to individual needs of every nation and also responds in an appropriate manner to these needs. There is also close contact and co-operative working shown by the company with the respective government so that every rule or legislation that has been passed by the government could also be taken into account while designing the strategies. The company is also involved in a lot of community works by provision of sponsors for the student community and contributes its share to the welfare of the people in the nations where it has its operations. Success factors of Wal-Mart Each of the stores operated by Wal-Mart is from that of the product being stocked by the company which would move towards the equipment at the front end and this would go a long way in helping checkouts in a rapid manner with the philosophy set by the company in place- provision of goods at low prices every day and at the same time providing customer services that are of top quality. Hence the added advantage of the low costs is that the expenses incurred in organisation of promotions for sales could be cut down to a large extent. Moreover the predictability of sales also increases. The company firmly believes in the system of cross docking inventory system and hence has invested a lot in the same. The process of cross docking has led the Wal-Mart to attain economies of scale and this has in turn brought about considerable reductions in the costs that are incurred for sales. In the system followed by Wal-Mart, there is a continuous delivery of the goods to the stores in a time of max imum two days and at times there are no requirements even to inventory them. Hence the shelves of Wal-Mart are refilled faster than four times of the existing competition in the market (Thomson, 1998). This is a particular advantage possessed by the company when it comes to competition. The power of buying of Wal-Mart is leveraged by means of purchasing in bulk quantities and also the company takes care of its own distribution. Hence every day low prices are guaranteed by the company and hence it has become a one stop shop. Hence at present the company owns stores in a variety of companies like argentina, mexico, brazil, Canada, UK, Korea china and also in Germany (Nelson, 1999). Single business strategy The major reason behind the success of Wal-Mart lies in the fact that the company believes and concentrates on the strategy of single business. This is the strategy that has been providing the company with success over a period of over 30 years. In the three decades the company has never believed in the concept of diversification for the sustenance of its growth and also its advantages at the competitive level. Hence the services provided by the company and the low prices offered are the major reasons behinds its success. The concentration on one particular strategy also poses a threat to the company because it is equivalent to place all the eggs in one single bucket (Richter, 1998). Supply chain, distribution The competitive advantage gained by a company depends on the efficiency existing in the system of operation of the company and also on the degree of efficiency of the supply chain. The chain of stores owned by Wal-Mart is highly successful only due to the ability of the company in the distribution of the merchandise from that of a huge network of distribution centers that are modern and are in turn served by means of truck fleet that is private. Wal-Mart has also been highly efficient in the maintenance of a good position in terms of the instock and also in the filling of the shelves that are in the new stores being established by the company every year. This is evident from the fact that though Wal-Mart has increased its sales by 30 in a time of two years, there was only a 12 percent increase in the inventory value at the cost of replacement in the same period of time (The Bay Area Economic Forum, 2003). Hence the strategy of leveraging a chain of supply for the purpose of restricti ng of the growth of the inventory continued to be followed by the company and during the first quarters resulted in a 14 percent increase of the inventories and a subsequent 3 percent increase in the inventories. Wal-Mart was also highly efficient and capable of investing in distribution capacities that are new and particularly this is true in case of the foods sold which is one of the areas responsible for a major portion of the growth shown by the company. The first centre for distribution of food by Wal-Mart located at Clarksville is only 10 years and there are twelve other centers for food distribution which are very new (Economist, 2006). WAL-MART IN INDIA Wal-Marts entry into India The nation of India is very different from the other nations in many ways. Being aware of the historic challenges and changes that have shaped the nation, the Indian government as well as the private sector existing in India have been taking rapid steps for the better shaping of the retail sector that is evolving at a rapid pace. Hence the changes taking place in the sector of retail should be considered keenly by the retailing giants. In the structure of the Indian retail transformations are continually being introduced and it is expected that the retail sector would grow towards 635 billion dollars by the end of the year 2015. The growth of the Indian population compounded by the escalation in the disposable incomes of the people of India is the basis for this boom in the sector of retail. Particularly the retailing of food is experiencing growth by leaps and bounds and the Grocery and Food segment contributes to around 60 percent of the whole of the market of India (Franklin 2001) . It was in the year 2005 that Wal-Mart began to look for ways to venture into India.. This was possible due to the decision of the Indian government to relax the regulations pertaining to the opening of foreign direct investment in India. The initial plan of Wal-Mart was the launching of whole sale stores in the country by means of joint ventures by the year 2008. it also had the initial target of expanding to over 75 nations in time of 7 years. But since the company faced a lot of opposition from the Indian side, they had to hold up their plans. However in the year 2008, there were three stores opened by Bharti retail in the stated of Punjab under the name of Easy days. Sunil Mittal from Bharti also mentioned that the local markets would be the source of over 90 percent of the goods and this combined operation would also lead to Wal-Mart increase its sourcing at the global level from the nation of India. The aim of the joint venture between Bharti and Wal-Mart is that Bharti would su pply Wal-Mart with the products it buys directly from that of the agriculturists, artisans and craftsmen (Goetz and Swaminathan, 2006). The challenges facing Walmart in India India was rated as one of the top international investment destination in 2005 amongst 30 other emerging markets that were short-listed for mass merchant and food retailers who wished to internationalize (Business Credit, 2006). Compared to other countries, India is seen as a rapidly accelerating economy whose gross domestic product (GDP) is rising at an average annual rate of about 7.5 percent continuously for the past three years (Choi, 2006; Economist, 2006) while its retail market has witnessed a growth of 10 percent on average (Business Credit, 2006). It is stated that the Indian retail market with a projection of $250 billion annually, is actually the worlds eighth largest market and it is expected that this will reflect a growth of more than 7% yearly (Dutt, 2005). These factors reflect that it is the strong economic conditions of the country that draw the attention of companies such as Wal-Mart who are interested in starting operations in the Indian retail market. Despite deregulations which have seen the rapid rise of the Indian economy, the retail economy is protected from foreign competition as rules disallow direct foreign investment in this sector. The multi-brand retailers cannot invest directly in the country and are not even allowed to open and operate their own stores (Kravilanz, 2006). This rule has forced Wal-Mart to enter into a partnership venture with Bharti Enterprises, which in turn is an Indian business group that is a leader in countrys telecom sector. This joint venture between Wal-Mart and Bharti has resulted in them managing the supply chain together while it is Bharti Enterprises that will act as franchisees to conduct the retail operations (Lakshman, 2006; Mukherjee, 2006). This particular model in India that has been selected by Wal-Mart will throw open likely challenges pertaining to ownership as well as internalization dimensions of the model. This particular model is not the way Wal-Mart operates in other countries s uch as Germany and South Korea. Thus the company needs to take care that the definition of the model is in tandem with the partnership entered into with Bharti as well as the strengths that are associated with Wal-Marts classic operating model. There have been cases wherein partnerships have failed. This would require Wal-Mart not only to manage its joint -venture closely but simultaneously work patiently with Bharti. Wal-Mart also needs to protect well the huge amount of supply chain and information technology intellectual property that it has introduced in the joint venture. As far as India is concerned this is a big challenge and there is a requirement on part of Wal-Mart to comprehend in detail managing the relation in this context at least. As far as the location is concerned, the size of market undoubtedly makes India an attractive destination which however is limited by many facets that need to be managed in order to ensure success. The present population of India is more than a billion. Despite having a large population that is relatively poor, the strength of Indias middle class population is around 300,000,000 people, which makes the number much larger in comparison to the total US population (Choi, 2006; Economist, 2006). This will prove advantageous to Wal-Mart as it has a large potential to which it usually caters to. The Indian market may be large but is typically characterized by intricate variety and difference. The complexity is clearly visible by differences that exist in religion, language, dialect, value system, food habit, economic buying power, clothing selection, fabric, tradition, and access to transportation. Indeed markets in India comprise of several sub-markets. The main factor will be how successful Wal-Mart is in segmenting the market as per different facets. The ability of Wal-Mart to build merchandise that is local and its ability to locate and supply approximately 75,000 products that are usually sold in a typical supercenter will be put to test (Dutt, 2005). The standards of Indian shoppers are difficult to meet as the Indian middle class customer is usually a value-conscious shopper. This is clearly reflected in the Indian customers mindset of expecting products that meet global standards albeit at process those are Indian.

Chico Mendes

The life of Chico Mendes. Born: December 15, 1944 Xapuri, Brazil Died: December 22, 1988 (aged 44) Xapuri, Brazil â€Å"At first I thought I was fighting to save rubber trees, then I thought I was fighting to save the Amazon rainforest. Now I realise I am fighting for humanity. † Chico was many things, he was a steward to this earth, a unionist,an enviromental activist , a father, a husband and the list carrys on. This story starts with Chico being a rubber tapper. Following his father, he was â€Å"a seringueiro†, a rubber tapper.He farmed a small clearing, but relied on the sale of rubber from several hundred native rubber trees in the rain forest itself to provide income for him and his family. Chico inherited the land and the trees from his father who had begun tapping them in the 1930s. Two long v-shaped cuts made with care in the bark of each rubber tree would produce one or two cups of the rubber. Chico also collect other natural forest products, such as fruits a nd Brazil nuts, allthough this didn't make much of a difference to his income.There was approximately 100,000 other rubber tappers living throughout the rain forest, and this is what they do as well. It is sustainable harvest which does not destroy the forest. When Chico was a young boy, him and his father would go rubber tapping together because it was one of the very few job available. At that day and age, the rubber tappers were conned out of their money by the people who bought the rubber. Becaue of the little education they all recieved, they couldn't do basic things, like reading or writing.The man that bought the rubber would lie about how much rubber he was given and the price the rubber was worth. This was changed when Chico met a man called Wilson, Wilson came to the rainforest because he was told you could get rich from rubber tapping and told Chico that if he taught him how to tap rubber than in return, Wilson would educate Chico about things like, reading, writing and m aths. A union was later formed by Wilson. Because of this union it helped the people get a better a education aswell as protecting their rights.On the first speach Wilson gave, he told everyone about how if everyone sticks together, than they are stronger than if they are apart. Wilson demonstrated this by using sticks, he snapped the one that was seperated, easily but not the bundle of many sticks. Land speculators and large cattle ranching buisnesses are more interested in the short-term profit than the lively hood of all the rubber tappers so they wanted to cut and burn the rubber trees down so they could build a road and ranches, this of course was so the rich, could become richer. The didn't care for the poor.When the union found out about the plans they fought back and organised protests and speaches, the leaders of the operations didn't appreciate this and sent Wilson (who was the leader of the union at that time) a goats head, this was a death promise. Wilson and his union d idn't back down though, this was the cause of Wilson's death, he was shot in the head. The leaders of the companies thought this would scare the union, it did. The leaders of the companies thought that this would scare the union so much that Chico would back down, but instead he did the opposite, Chico lead the union from then on.Chico Mendes and the Union fought to end this destruction of the tropical rain forest. The made many political inroads, gaining influence with the public. His main enemy was Darli Alves da Silva, a cattle rancher who had begun acquiring forest land in Acre. Darli vowed that Mendes would not live out 1988. In one protest, a man thought Chico was going to be killed by a man with a chain saw, so the man stupidly stepped infront of the chainsaw and later the man had to have his arm amputated. This made the class laugh.In many of the protest Chico told the memebers of the union to sit down and not fight back, because if they fought back, their enemies would say it was â€Å"self defence† when they harmed the inoccent union memebers. The man that was buying the forest for ranches, ambushed the union and shot a boy dead, putting 9 bullets in his body. Chico later ran for governour, his wife did not approve and she begged Chico not to draw attention to himself. Chico didn't get enough votes to become govenour and his opponent was giving away free chainsaws which made Chico lose some votes from his once loyal friends.When Chico was already a father to one child, his daughter. His wife once again became pregnant to two boys, sadly only one of his sons survived, the other passed away. When Chico went to Miami, he become more well known, which showed people about how the companies wanted to exploit the rainforest. Because Chico was becoming a threat to the companies plans, people came to negotiate what was going to happen,†For a negotiation, there needs to be a give, and a take. † Explained one of the men. â€Å"Fine, give us back or land, and take away the chainsaws. † Replied Chico as he laughed at his own joke.The men, after alot of negotiating decided that the land would be reserved for the rubber tappers and each generation off them. When the negotation was over, Darli and his family were chased of the land. Darli, obviously he was angry about this and supposedly sent Chico a death threat, once again, it came in the form of a goat's head. Chico, his wife, and two policemen assigned to guard him were playing cards at his home on December 22, 1988. Chico stepped outside for a moment and was killed by a shotgun blast to the chest from a waiting assassin.The local police claimed no clues or suspects in the case, but local and international protests forced the Brazilian government to enter the investigation. Evidence led them to the ranch of Darli da Silva. In the summer of 1989 indictments for murder were handed down to Darli da Silva, his son Darci Pereia da Silva, and Jerdeir Pereia, one of da S ilva's ranch hands. Testimony indicated that Darli ordered the murder and that Darci supervised as Jerdeir carried out the plot. There is evidence that other prominent ranchers may have been involved in the plot, and they are currently under investigation.

Homeland Security - 1085 Words

AMERICAN MILITARY UNIVERSITY HOMELAND SECUIRTY Brittany Staley HLSS302: Paper #2 May 11, 2014 In the years since 9/11, homeland security has turn out to be frequently and generally identified as both a word and as a Federal department. However, a large amount has been learned since 9/11 concerning the array of further challenges we face. Hurricane Katrina strongly illustrates the general impact of weak preparedness and response in the face of severe natural disasters. Widespread international cyber attacks from some of the most sophisticated denial-of-service efforts to persistent and rising attacks on U.S. Government cyber systems reflect the increasing†¦show more content†¦It is clear, however, that this stress on terrorism does not capture the full range of unified threats and challenges that distinguish today’s world. A robust notion of homeland security must take account of our essential need to safely, securely, and intensively engage the rest of the world through trade, travel, and other exchanges (U.S. Department of Homeland Security, 2010). So basical ly what they are saying is a place where the American way of life can flourish. There are five homeland security missions are preventing terrorism and enhancing security, securing and managing our borders, enforcing and administering our immigration laws, safeguarding and securing cyberspace and ensuring resilience to disasters (U.S. Department of Homeland Security, 2010). Preventing a terrorist attack in the United States remains the foundation of homeland security. Accomplishing this idea entails us to emphasis on the primary goal of preventing terrorist attacks, emphasizing the challenges of preventing attacks using CBRN weapons and handling risks to critical infrastructure. A safe and secure homeland demands that we uphold applicable control of our air, land, and sea borders. Secure, well-managed borders should not just protect the United States versus threats from abroad they need to also accelerate the safe movement of legal travel and trade. It is also vital to encourage legal immigration, accelerateShow MoreRelatedHomeland Security And The Security1435 W ords   |  6 Pagesdefined to the point it is today. The Homeland Security Department is a fairly new program which is constantly improving and adjusting in accordance to the threats that may arise. In the attempt to secure the United States, homeland security has become paramount and a lot of emphasis is being provided so as to ensure the safety of the borders and the citizens of the United States. 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There have also been great strides made to protect the U.S. from insider threats as well. The monumental effort it took to synergize all 22 agencies with inherently different jobs into one living breathing unit took significant patience and forethought. There has been and will continue to beRead MoreThe Department Of Homeland Security And Homeland Defense969 Words   |  4 Pages The defense, security, and safety American citizens enjoy each and every day is a result of dedicated professionals committed to Homeland Security and Homeland Defense. These broad initiatives require well-defined missions, organized and focused tasking, and finally, clearly understood duties, responsibilities, and operations. Organizations charged with these responsibilities must be better resourced than those o f the enemy. Success in each of these objectives requires a well-organized infrastructure

Archetypes In Steinbecks Of Mice And Men - 1115 Words

In the story Of Mice and Men, it follows a disabled man and his crafty caretaker looking for work on a farm. The few characters that are shown in the book possess very diverse personalities that fit into different archetypes, many of them challenge the stereotypes that surrounded them during the early twentieth century. Archetypes are characteristics that are commonly seen in literature and real life. In the book Of Mice and Men there are seven distinct archetypes that all have different characteristics in them. One thing that all the characters have in common, though, is loneliness. Throughout the book the theme of loneliness is constantly there, and one of the loneliest characters is Crooks. Crooks fits the archetype of an outcast†¦show more content†¦Now you jus; get out an’ get out quick.† Even though he tries and kick everyone else, he is once again reminded how little power he has when Curley’s wife threatens to get him killed. Steinbeck used more t han just indirect and direct characterizations to show Crooks’ personality, he also used literary devices. Steinbeck used tone to relay Crooks realistic down to earth side. When talking to Lennie, Crooks had a more realistic down to earth feeling, while Lennie’s tone was more dreamlike, with everything working out in the end and everyone happy. While talking to Lennie and Candy about the dream, Crooks says, â€Å"You guys kiddin’ yourself. You’ll talk about it a hell of a lot, but you won’t get no land.† Although Steinbeck doesn’t say it directly, he shows us through Crooks and Lennie’s dialogue that Crooks is a very down to earth person. While Candy and Lennie are both fooled by the dream, Crooks shows himself not to be so gullible. Steinbeck also uses the setting to show Crooks’ loneliness. Crooks’ shack is literally separated from everyone else. The setting is detached from everyone else, just as Crooks’ is. Even though Lennie comes and gives Crooks some company, that does not help him at the root of the problem; Crooks lives being separated from everyone else, all he did was bring comfort with the ideas of a dream, one that Crooks knew would not happen. Throughout Of Mice and Men Crooks is shown to have an archetype of an outcast. The archetype of an outcastShow MoreRelatedArchetypes In John Steinbecks Of Mice And Men838 Words   |  4 Pageswrong with it. The archetype I am giving Lennie is innocent. Archetypes are characteristics of easy or well-known traits from children’s literature, pop culture, or even everyday life, they help the readers connect with the characters quickly and accurately. Lennie’s archetype is innocent because he is always so caring to others. He is also taken advantage of a lot. Lennie is always so positive even when the hardest situations are thrown at him. In John Steinbeck’s Of Mice and Men novel Lennie SmallsRead MoreA Psychologic al Analysis of Of Mice and Men Essay1319 Words   |  6 Pagesliterature through the lens of psychology. There are multiple approaches to the psychological aspect of literature but the two most recognized are the Freudian and Jungian approach. The best approach to use when critically analyzing the novel Of Mice and Men, written by John Steinbeck, is the Jungian approach. Because the novel’s main theme is a struggle with the idea of â€Å"self†, using this approach allows the reader to understand the main character, its influences, and ultimately his actions. TheRead MoreJane Eyre And Of Mice And Men2621 Words   |  11 PagesExplore how women are presented in ‘Jane Eyre’ and ‘Of Mice and Men’ Brontà « and Steinbeck are arguably two of the most prominent writers in English literature, parted by a ninety year time span and a difference in pre occupations, which could be due to their difference in gender. Jane Eyre and Curley’s wife are two of most different characters but similarly both used drive the plot. Both characters struggle to fit into society; Jane is belittled by her Aunt Reed and being kept apart from the otherRead MoreNew Log : Of Mice And Men892 Words   |  4 PagesMrs. Adria Butcher Ap English IV 7th period September 30, 2015 New Log: Of Mice and Men by John Steinbeck John Steinbeck creates an odd pair of men to assume the role of protagonist in his novel, Of Mice and Men. George, a small and quick-witted man, is the dominant personality. Lennie, his clumsy companion, is a character who displays a child-like demeanor and is often compared to an animal throughout the novel. The couple’s relationship closely resembles that which is often found between a fatherRead MoreJohn Steinbeck s Of Mice And Men1117 Words   |  5 Pageswhole thing. John Steinbeck’s â€Å"Of Mice and Men† relates to Foster’s words. In the novella, George, the main character, is questing towards owning a farm with his mentally disabled friend, Lennie. The two men are a package deal. Lennie has the physical force, and George has the brains. Even though they should work very well together, George is not exactly kind towards Lennie. Patience is not a concept that George is familiar with, and it is shown throughout the text. In â€Å"Of Mice and Me n†, George illustratesRead More Mythology and Archetypes in Harper Lees To Kill a Mockingbird2536 Words   |  11 PagesMythology and Archetypes in Harper Lees To Kill a Mockingbird      Ã‚  Ã‚   Of all the various approaches to criticism, the Mythological/Archetypal achieves the greatest impact over the entire literary scope, because the themes and patterns unearthed apply universally to all works, yielding results that can be applied to a great many texts. This is because the very nature of the Mythological/Archetypal approach is the exploration of the canon for widespread and pervading symbols, plots, and