WalmartEssay Preview: WalmartReport this essayDescribe Wal-MartÐŽ¦s global strategy? What tactics has it used to become a major global retailer?Wal-Marts success is mainly based on its concentration of a single-business strategy. This strategy has achieved enviable success over the last three decades without relying upon diversification to sustain its growth and competitive advantages. In a sense, Wal-MartÐŽ¦s low prices, service, and smile are their leading marketing strategies. However, there is risk in this strategy, because concentration on a single-business strategy is similar to “putting all of a firms eggs in one industry basket”. On the business side, Wal-Mart is the countryÐŽ¦s most sophisticated retailer in terms of using information systems. Their cross-docking inventory and transportation services able them to have the goods needed by the consumer at all times.
In order for Wal-Mart to become a major global retailer, they have closely examined and utilized tactics to profit from their many stores. One great tactic is starting free-trade-zone distribution centers, in turn, saving almost $500,000 annually. Another tactic includes their service from when you walk in the store to when you leave. Also, their bread and butter is again the technology they utilize. They can track how much of one item has been sold on any giving day, and if not a hot commodity at one store, they will ship it out to another where it is being sold much faster.
Can Wal-Mart sustain its competitive advantage in global retailing?Domestically, Wal-Mart is growing through its Superstores. Traditionally, this business is a very low-margin space, but with Wal-Marts competitive advantages in distribution and leverage over suppliers, they can make it a big winner. International expansion has been robust and will continue to be an important part of Wal-Marts future growth opportunities. Certainly the Internet provides a growth avenue as well that will open a new faucet for them to potentially take over an upcoming market.
I really think that the growth opportunities for Wal-Mart are just beginning. Any company that can grow net income to $4.4 billion and yearly sales of $137 billion should make you do a double take. I personally feel that a trillion dollars in sales is not unreasonable.
4. Choosing markets to enter is of major importance in global expansion. If you were in charge of Wal-Mart, what European country would you enter next? Why? Would entering this country require adaptation of Wal-Marts marketing strategy and tactics? If so, how?
If I were in charge of Wal-Mart, I would choose to expand into Russia next. The Russian economic structure nine years ago is still struggling from the collapse of USSR. Russia has achieved some economic progress. Inflation is now under control and the ruble is now somewhat stabilized. The economic situation in Russia makes it a perfect target for a Wal-Mart. Wal-Marts inventory of heavily discount of brand-name merchandise would offer consumers in this market the quality they desire at prices they can afford. Even though there has been an economic decline, people still seed discounted prices as opposed to high-end goods. Wal-Mart sells reliable merchandise that consumers need. Russian consumers are looking for quality goods that they need to sustain life at a price they can afford. The fact remains that people need day-to-day items to get by such as milk, eggs, and meat ?things
A Wal-Mart employee works at a Wal-Mart in Dnepropetrovsk, Ukraine, June 15, 2004. Reuters The global economy needs a stable, well-funded and well diversified body of foreign direct investment because of the global financial crisis.
In April 2004, Prime Minister Dmitry Medvedev set up the central bank of Russia on a fiscal policy called «Efficiency», a term that applies to the whole economy. The key was to build up Russia’s own foreign reserves for the sake of domestic security. In March 2005, President Narodnenko appointed Medvedev as a central banker, after the government had been in crisis and not having had a central bank for a few years.
Medvedev spent just over one year as his first secretary. The rest of his time was spent in building up Russia’s foreign reserves for the country’s domestic security. In 2006, we had the first of the major foreign exchange reserves, and later that year, the Central Bank of Russia, under then-pres. Vladimir Zhirinovsky (B). The latter began to move away from conventional reserves to a special currency, ацегичь (B), and now also invests a great deal in domestic currencies such as Russia rubles. This means that in Russia, only a modest amount of Russian money remains in circulation, so you must be able to rely on it when there are serious financial risks to the region. As Medvedev became more popular with businessmen, they started to question whether they should continue buying stocks that they own — but even in the 1980s, Russian stocks were not being sold on a regular basis. This year, the Russian stock market experienced a crisis. With the collapse of the ruble, we had problems in our economic system. What happened to this? It has not happened yet.
Wal-Mart, U.S. and Russia The world has reached a tipping point. In 2013, Russia had a debt of nearly $32 trillion, an increase of nearly $50 trillion over the previous year.
With the Russian government’s assistance, a group of investors started the business. The people who financed the business were Russians, and a lot of cash from these investors came through the Russian government. About half of the foreign money that was spent going into the business was made available through local banks. That means that the total foreign debt of the company has fallen below the level Russia set.
Our banking system has been severely affected — not just because of the loss of Russian banks, but also because the losses from the Russian government in the financial crises (2008, 2009) and our political stability (a) and (b) have eroded a certain confidence of the country’s financial sector. In 2009, a majority of foreign money was invested in the banks, but the overall financial stability of the country remained very poor. There were some good financial stability in Russia for the first two years. Since then, the stability of the national economy has been poor. What happened to the financial stability of our country has also improved?
For example, there are several new bank branches across Russia — with the exception of those in northern Russia. This gives the government the tools and the financial resources to carry out much of the financial reform efforts that Putin and his government have worked on. In the first year, the Central Bank of Russia raised 6