The success story that Walmart shares with the rest of the world has been developing over decades. Walmart who is recognized as the world’s largest retailer has spent great efforts to ensure its everyday low prices strategy, logistics, and information and operations systems are efficient to correctly plan for its 4200 local stores and 3600 global locations. The company employs over 2.1 million people to correctly keep store shelves stocked and make sure that the store is neither over nor under stocked. Due to the careful buying consideration and effective systems, the company collectively generated an outstanding revenue of $400 billion 2008; $91 billion of which was made from 15 other nations. Alarmingly, U.S. related growth began to slow down thus starting the Walmart international venture which began in Mexico in the early 1990s. Set up in Mexico was far from easy, the company’s initial idea was to operate as a joint venture with Cifra, Mexico’s largest retailer, and open supercenters what offered groceries as well as general merchandise.
Soon the business realized that shopping habits differed, and that to be as successful as in their home market they must adapt to the Mexican culture. As they studied their new target market they noticed that the population did not buy in bulk as they did in America due to poor transportation, and also stuck to tradition of purchasing everyday necessities such as meat, tortillas and pan dulce from local neighborhood stores. Walmart responded to this by hiring local managers who were aware of Mexican culture and traditions to be in charge of merchandising products and building smaller stores that would offer local produce all while being walking distance from home. As these new attempts of adaption to the Mexican culture began to be effective, Walmart believed that they could slowly mold the Mexican buying power to resemble that of the United States by education them about American buying culture. After all, it was not until the 1950s that Americans started accepting and shopping from large stores such as Walmart.
The Term Paper on Mexican Religion Shapes Culture
Mexican Religion Shapes Culture Throughout the world, the expansion of religion has significantly influenced the development of humanity in many different ways. Religion is an organized collection of belief and cultural systems with world views that relate humanity to spirituality and moral values (dictionary.com). Many religions have narratives, symbols, traditions and sacred histories that are ...
As the company strengthened its distribution systems in Mexico, it was able to lower the prices of products, thus altering the Mexican mindset and attracting them to shop at the superstores. Today the Mexican Walmart venture is known as one of the most successful for both Mexico and the company. Based off of its Mexican success story, Walmart decided to expand into Europe and Asia. They chose locations in Germany. Britain, China, and South Korea to open new stores and soon came to learn that these would unsuccessful due to the unattractive low quality and discount strategies that Walmart catered. In 2006, after years of losses the company decided to pull out of Germany and Korea and search for opportunities in countries with underdeveloped local competitors. Since closing most of the European stores, Walmart focused on its China location which was opened in 1996 and grew very minimally. By 2006 China only saw 66 Walmart stores around; but by growing at a slow pace Walmart was able to collect vital information that they could utilize in their future strategies when opening up more locations.
To much of their surprise they learned that Chinese shopping culture was very similar to that of America, and that as a company, Walmart could win over customers using their low price strategy. Another adapting adventure was the beginning of live sea food sale that customers could fish for in store. This venture really succeeded and sent sales soaring. Walmart has also face some difficulty accepting Chinese culture. The business strongly believed against unions which is what Chinese success stories are based on. After many years of fighting against them, Walmart agreed to go against its morals and allowed for the employees to join unions. It is said that this was what has led to the recent success that Walmart has seen. In 2006 Walmart purchased 35% of Trust-Mart, a local chain in 34 cities around China and expanded its reach. By 2009 Walmart shared its success with 243 other stores and promises to open many more despite the economic slowdown. Questions
The Business plan on Walmart Stores Sam
... prices. He also opened new store formats like Sam’s Club and the Walmart Supercenter. He even expanded outside of the country by locating a Walmart ... also stated that in response to critics, the company adopted more progressive community, environmental, and employee practices. ... a company’s corporate strategy and performance. According to Maria Shao (2009), “Walmart embarked on a strategy to burnish ...
1. I do believe that Walmart is capable of translating its merchandising strategy elsewhere and being successful! Since its foreign ventures began over two decades ago, Walmart was shown the world that the company will continue to grow despite the economic slowdown. The low price strategy is what is desired by a large population that shop on a budget or are just looking for a bargain. Although the company did face some setbacks and had to close stores in a few countries, it proved that by focusing on locations with similar American shopping culture and a lack of strong local competitors that could enter that county’s market, minimally adapt their way of selling and create success stories. An example of a country that Walmart could look into as a new venture would be Saudi Arabia. Families are large and there is a high demand for discounted goods. Also there is not a vast amount of stores to shop at and very few super shopping centers.
2. After reading the text, I think that Walmart did a good job with its Mexico locations. Although the situation of opening stores that mimicked those in America’s was shaky in the beginning years, the company quickly learned to compromise. In order to win the competition they must adapt to some Mexican ways such as opening small convenient stores in neighborhoods and from that slowly educating the customers about the ‘better’ American shopping culture so that they could persuade them to accept it. I also think that by strengthening their distribution channels and passing low prices to its Mexican customers was a huge accomplishment for the company.
The Essay on Factors That Project Company Culture
These positive behaviors are expressed through the employee’s customer service. For businesses, customer loyalty and retention are most important. To retain these things, employees would greet customers, converse with them through small, listen, etc. These simple techniques are what give a company its culture. The company’s behavior patterns establish its culture and may be perceived as favorable ...
3. Walmart failed in places such as South Korea and Germany due to the fact that it was competing with already well-established local retailers. These retailers had the upper hand and understood the shopping culture of the countries they operated in; unlike Walmart who was just beginning to learn. Another reason that Walmart’s foreign venture into South Korea and Germany didn’t succeed is that the everyday low prices strategy didn’t translate well in these countries as the customers were used to high quality products that Walmart could not offer. On the other hand, Walmart did succeed in Mexico and continues to portray progress due to the fact that the nation is not as developed as Germany and South Korea so it was easier to educate its citizens about the benefits of lower prices and not as high quality. Other differences between the nations are that Mexicans are attracted to low prices and bargains, and did not have as much competition as the other foreign ventures.
4. Walmart’s brand positioning in the American consumer’s mind is rapidly falling due to the competition it faces from other large scale grocery stores and its limited locations. Its newer venture which started in China is the key to success that Walmart anticipates in the upcoming years which will be proven by rising profits. The company faced many difficulties adapting to the “Chinese way” but must continue to adjust its products and practices to better fit the population. Walmart is evidently focusing on integrating ‘American’ ideas that the superstore is well known for in the United States all while developing a system that also incorporates Chinese customs.
To succeed Walmart must start allowing Chinese customers to engage in tradition such as ‘fishing for their own food’ or selling tortoises for food purposes. Although the company is struggling to reflect its “Everyday low prices” as Sam Walmart and the rest of America recognize this superstore for, it is using alternatives to win the mind of the shopper and creates a positive experience that will have customers returning for more of the shopping experience. As anticipated, Walmart is beginning to gain popularity due to its careful spending on opening up more and more stores that all share the same concept and its higher quality goods. The company see has a bright future with the Chinese population and will continue to prosper by the looks of it if they stay on the same successful track that they are on.
The Essay on How To Change Your Culture
Changing your organizational culture is the toughest task you will ever take on. Your organizational culture was formed over years of interaction between the participants in the organization. Changing the accepted organizational culture can feel like rolling rocks uphill. Organizational cultures form for a reason. Perhaps the current culture matches the style and comfort zone of the company ...
5. A company can only change a culture as much as much the nation allows it to. In order to begin the change a company must try to prove to the population the positives of change and not try to force any ideas on them. They can slowly start implementing the change when they have followers and see a climbing success rate of responders. In Mexico they redefined shopping culture because they took the necessary steps to educate about the ‘better’ culture. Walmart is capable of so much more expansion and change as long as they implement customization in their business plan. There are many places that are willing to change, its Walmart’s job to find these locations are start working there. All in all, the extent to which a company can change a culture due to business is endless as long as the company does not offend any existing traditions or culture.
