The company take advantage
Wal-Mart needed to grow in order to survive. A company can undertake several strategies in order to propel itself. The company could take advantage of global suppliers such as Procter and Gamble, Pfizer, Nestle and Hallmark through establishing better relations with this category of clientele. It could promote their products and acquire loyalty as suppliers from them. It could also utilize domestic knowledge bases and competencies available in various countries to develop store management, merchandising skills, marketing, supply chain, logistics and IT sectors in foreign markets.
For e. g. given Japan’s technological base, Wal-Mart had a flawless integration process with Seiyu. Furthermore, it could also use these ideas and implement them in US stores to be able to generate further sales or reduce costs. Emerging markets of China and India are great platforms for discount retailing. This is because these customers, with their lower levels of disposable income are very price conscious therefore Wal-Mart should focus on providing the best prices without compromising on the quality.
Its slogan “Save Money, Live Better” would be better suited to such markets. Wal-Mart must also understand the uniqueness that exists in every market in terms of culture, values and beliefs and flex itself in accordance with these. Lastly, successful establishment of local presence can be done through three strategies to attain a higher market share. Firstly, through acquiring a dominant player, this would automatically lead to recognition and a greater market share. For e. g.
when entering the United Kingdom, Wal-Mart took over Best Buy, UK’s leading food chain. Through this it gained recognition and established its presence in the market. Secondly, through acquiring weak players, since they are easy to acquire and are fine entry points into a foreign retailing industry. This was reflected in the case of Japan where Seiyu, an ailing company, was taken over by Wal-Mart. Thirdly, the company can go head on into a competitive arena, but this is only possible when the company has a competitive advantage to rely upon.
This strategy usually adopts a full frontal attack but will only work if Wal-Mart has a competitive advantage to fall back on. Wal-Mart has a strong presence in the global arena, the strategies discussed above would give it the propulsion to further expand and realize higher revenues and greater profit.
Book Kraft, Mantrala, M, M. Retailing in the 21st Century: current and future trends. Illustrated. London: Springer. (2006).