Questions on Wal-Mart’s International Expansion
Other than profit, what other reasons would Wal-Mart have for opening stores globally?
The pursuance of the international markets by WalMart has been the strategy adopted to enable the firm to continue growing profits. With less than 100 stores opening each year in the U.S. The market appears to be moving towards a saturation point, and new stores may result in a diminishing return. Opening stores in new markets will allow for the firm to continue growing and pursue profit, but there are also a number of additional motivations that could drive the international expansion.
The first reason may be linked to the diversification of risk. The firm is well developed in the U.S. market with a dominant position. However, when a firm has a significant amount of revenue coming from a single market, there is a risk of a downturn if that market suffers; for example economic shock (Mintzberg et al., 2011). If a firm is operating only in one country, and that country suffers a significant economic downturn, then the firm may suffer reduced revenues and lower profits, and may have to undertake new strategies to satisfy new market needs. If the firm operates in a number of different markets, the exposure to the risk in a single market is reduced, as a lower percentage of the revenue is generated by each market. This places the firm in a stronger position to deal with regional issues that may impact on operations or sales (Mintzberg et al., 2011).
The second motivation may be to undertake expansion as a defensive strategy. WalMart may be the dominant retailer in the U.S., but they are not the dominant player in all markets, for example in the UK Tesco is the dominant firm and in France it is Carrefour. This international position indicates that there are large firms with a significant level of resources that could potentially enter the U.S. market. Having a presence internationally places the firm in a good position to develop further, especially if there is increased competition in the home market. The firm could also compete aggressively in the international markets if firms seek to compete in their home market (Mintzberg et al., 2011).
International expansion may also increase the knowledge and contacts in a firm and give them a better understanding of the markets. The firm can learn and adapt strategies in foreign markets if they have advantages, and may also develop local relationship with suppliers which may enhance the overall performance of the firm.
Part 2 – Why would Wal-Mart want strong centralized, or localized, control of its stores?
There are advantages and disadvantages associated with both central control of stores and localized control of stores. Strong centralized control gives the firm a clear advantage in terms of ensuring that the shopping experience will be the same in all stores, and that the desired image and standards are maintained. In the U.S. A customer knows what to expect when they enter a WalMart, there will be a similar lay out, and with centralized control the different stores will have the same promotions at the same time, selling many of the same goods. The standardized approach also facilitates increased potential benefit in terms of the economies of scope and scale (Nellis and Parker, 2006).
The danger with the central control approach, as seen with WalMart in South America is that differences exist between the different markets. When WalMart started out in Brazil they sold American jeans and footballs, to attract customers they realized they needed to satisfy the local demand, which were for the cheaper knock off jeans and soccer balls along with displays for ingredients for local dishes (Simchi-Levi et al., 2007). With the centralized approach, the management making the decision were not familiar with the needs of the local markets, and the generalized approach not only failed to serve the needs of that market, it alienated the potential customers (Simchi-Levi et al., 2007). Firms that do not adapt to local needs are unlikely to capture any significant level of the local market, as customers will not choose to purchase their goods. There may be increased costs associated with local control, and the additional hierarchy that may be needed to make the decisions, there may be a loss of some potential economies of scale, and the risks may include the failure of the firm to have a unified approach, so shopping experiences may differ across the company. However, the benefits are a greater ability to recognize and satisfy local demand, and adapt and change more rapidly as the decisions are made closer to the operating environment. WalMart moved away from the centralized approach, towards a higher level of local control, which has proven to be beneficial.
Mintzberg Henry, Ahlstrand Bruce, Lampel Joseph B. (2008), Strategy Safari: The Complete Guide Through the Wilds of Strategic Management, Financial Times / Prentice Hall
Nellis JG, Parker D, (2006), Principles of the Business Economics, London, Prentice Hall
Simchi-Levi, David, Kaminsky, P; Simchi-Levi, E, (2007), Designing and Managing the Supply Chain, (3rd Edition), McGraw-Hill/Irwin
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!