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Wal-Mart: strategic concept

Wal-Mart is the world’s largest retailer with approximately 6,500 stores worldwide (Business 2006). The main feature of Wal-Mart’s business model is to cut costs (continuously) and therefore offer lower prices than their competitors. For instance, Wal-Mart has introduced new logistical technologies such as radio-frequency identification (RFID) to optimize its logistic processes. RFID is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. Wal-Mart tries to minimize labor costs by offering minimal health care plans. Wal-Mart pressures its suppliers to cut costs, on a continuous basis. In brief, Wal-Mart’s managers are constantly seeking out ways to cut costs, and some of their successes are passed on to shoppers, in terms of lower prices.

Wal-Mart’s entry into the german market

In 1997, Wal-Mart acquired over 21 stores from the supermarket chain “Wertkauf.” One year later, Wal-Mart bought an additional 74 stores from the supermarket chain “Interspar”. As a result, Wal-Mart became the fourth biggest operator of supermarkets in Germany (Lebensmittelzeitung 2006). The objective was to expand to 500 stores in Germany. However, the number of stores never exceeded the 95 stores that were originally purchased in the first two years. Wal-Mart’s position in the marketplace deteriorated over the years. In 2002, Wal-Mart had some financial difficulties due to a low turnover which resulted in the dismissal of some employees. At the end of 2006, Wal-Mart was bought out by “Metro”, one of Germany’s largest retail groups. Finally, Wal-Mart left the German market with a loss of one billion dollars before tax (Manager-Magazin 2006).

Mis-steps in the german market

In general, there are five key issues related to Wal-Mart’s ultimate withdrawal from Germany: ( a) market structure; (b) business model (these first two are discussed together here); c) cultural and communication; (d) politics and regulation; and (e) product/service failure. Each of these issues is discussed in turn. Note also that these five issues are highlighted in [link] .

Market structure and business model

A retailer that wants to follow Wal-Mart’s strategy of low prices needs to expand rapidly. In Germany, there not enough appropriate locations to support such expansion (see [link] ). As previously mentioned, Wal-Mart did not build their own stores but took over 21 existing “Wertkauf” supermarkets that had a totally different business model. The stores themselves were very small and had a limited range of goods. A related problem is that these stores were located far apart, which resulted in high logistical costs.

When entering a new market, it is important to anticipate competitors’ reactions. In Germany, Wal-Mart’s biggest competitor, Metro, wanted to expand their stores; at the same time, Metro wanted to prevent Wal-Mart from executing their expansion plans (Senge 2004). Many times, a product has to be deleted because the competition is too strong.

Questions & Answers

if theta =30degree so COS2 theta = 1- 10 square theta upon 1 + tan squared theta
Martin Reply
how to compute this 1. g(1-x) 2. f(x-2) 3. g (-x-/5) 4. f (x)- g (x)
Yanah Reply
hi
John
hi
Grace
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John
not much For functions, there are two conditions for a function to be the inverse function:   1--- g(f(x)) = x for all x in the domain of f     2---f(g(x)) = x for all x in the domain of g Notice in both cases you will get back to the  element that you started with, namely, x.
Grace
sin theta=3/4.prove that sec square theta barabar 1 + tan square theta by cosec square theta minus cos square theta
Umesh Reply
acha se dhek ke bata sin theta ke value
Ajay
sin theta ke ja gha sin square theta hoga
Ajay
I want to know trigonometry but I can't understand it anyone who can help
Siyabonga Reply
Yh
Idowu
which part of trig?
Nyemba
functions
Siyabonga
trigonometry
Ganapathi
differentiation doubhts
Ganapathi
hi
Ganapathi
hello
Brittany
Prove that 4sin50-3tan 50=1
Sudip Reply
f(x)= 1 x    f(x)=1x  is shifted down 4 units and to the right 3 units.
Sebit Reply
f (x) = −3x + 5 and g (x) = x − 5 /−3
Sebit
what are real numbers
Marty Reply
I want to know partial fraction Decomposition.
Adama Reply
classes of function in mathematics
Yazidu Reply
divide y2_8y2+5y2/y2
Sumanth Reply
wish i knew calculus to understand what's going on 🙂
Dashawn Reply
@dashawn ... in simple terms, a derivative is the tangent line of the function. which gives the rate of change at that instant. to calculate. given f(x)==ax^n. then f'(x)=n*ax^n-1 . hope that help.
Christopher
thanks bro
Dashawn
maybe when i start calculus in a few months i won't be that lost 😎
Dashawn
what's the derivative of 4x^6
Axmed Reply
24x^5
James
10x
Axmed
24X^5
Taieb
Thanks for this helpfull app
Axmed Reply
secA+tanA=2√5,sinA=?
richa Reply
tan2a+tan2a=√3
Rahulkumar
classes of function
Yazidu
if sinx°=sin@, then @ is - ?
NAVJIT Reply
the value of tan15°•tan20°•tan70°•tan75° -
NAVJIT
what's the easiest and fastest way to the synthesize AgNP?
Damian Reply
China
Cied
types of nano material
abeetha Reply
I start with an easy one. carbon nanotubes woven into a long filament like a string
Porter
many many of nanotubes
Porter
what is the k.e before it land
Yasmin
what is the function of carbon nanotubes?
Cesar
I'm interested in nanotube
Uday
what is nanomaterials​ and their applications of sensors.
Ramkumar Reply
what is nano technology
Sravani Reply
what is system testing?
AMJAD
preparation of nanomaterial
Victor Reply
Yes, Nanotechnology has a very fast field of applications and their is always something new to do with it...
Himanshu Reply
good afternoon madam
AMJAD
what is system testing
AMJAD
what is the application of nanotechnology?
Stotaw
In this morden time nanotechnology used in many field . 1-Electronics-manufacturad IC ,RAM,MRAM,solar panel etc 2-Helth and Medical-Nanomedicine,Drug Dilivery for cancer treatment etc 3- Atomobile -MEMS, Coating on car etc. and may other field for details you can check at Google
Azam
anybody can imagine what will be happen after 100 years from now in nano tech world
Prasenjit
after 100 year this will be not nanotechnology maybe this technology name will be change . maybe aftet 100 year . we work on electron lable practically about its properties and behaviour by the different instruments
Azam
name doesn't matter , whatever it will be change... I'm taking about effect on circumstances of the microscopic world
Prasenjit
how hard could it be to apply nanotechnology against viral infections such HIV or Ebola?
Damian
silver nanoparticles could handle the job?
Damian
not now but maybe in future only AgNP maybe any other nanomaterials
Azam
Hello
Uday
I'm interested in Nanotube
Uday
this technology will not going on for the long time , so I'm thinking about femtotechnology 10^-15
Prasenjit
can nanotechnology change the direction of the face of the world
Prasenjit Reply
At high concentrations (>0.01 M), the relation between absorptivity coefficient and absorbance is no longer linear. This is due to the electrostatic interactions between the quantum dots in close proximity. If the concentration of the solution is high, another effect that is seen is the scattering of light from the large number of quantum dots. This assumption only works at low concentrations of the analyte. Presence of stray light.
Ali Reply
the Beer law works very well for dilute solutions but fails for very high concentrations. why?
bamidele Reply
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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Source:  OpenStax, Business fundamentals. OpenStax CNX. Oct 08, 2010 Download for free at http://cnx.org/content/col11227/1.4
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