WHYWALMARTFAILEDINGERMANY

1、case 4.1 : walmarts misadventure in germanycourse:msc in strategic marketingmodule:international marketing (bst 248)lecturer: dr. stephanie slaterdate:monday, 23rd november 2009group t1 members aneeq ahmed ya-han chen tsz-sin leung wei liu pussarin phalitnonkiat dandan ren kerstin walter12agenda 1.

2、milestones in the walmart history2. walmarts strategy3. why did walmart fail in germany?4. strategic optionsmilestones in the walmart history3 1962sam walton opens the first store in rogers / arkansas (usa) 1967sales reach $12.6 million with 24 stores 1980walmart sales cross over 1 billion dollars $

3、1.4 billion from 276 stores 1991walmart goes global joint venture in mexico with cifra 1993walmart opens international division 1997walmart entered the german market 2002walmart records the highest single-day sales in history $1.43 billion on thanksgiving 2003walmart becomes the largest retailer in

4、the world sales of $244.5 billion with 4688 stores worldwide4walmarts strategy1. strategy based on four pillars: entry mode price customer orientation supplier relation2. swot analysis1正确的步骤；2认识新员工的优点，针对其特长安 排工作；3协助新员工养成随时汇报工作、与 上级联络、与同事商量的习惯；4不仅注重结果，还要注意工作过程、 方式方法，先求质量后求数量；5使员工了解工作的严格性，不走样 地执行上级意图；

5、6培养员工的时间观念，尽量不给别 人增添麻烦。如何进行实际操作训练如何进行实际操作训练 学会思考，少闹情绪 情绪是一种能够在数小时、数日、甚至数周内控制和影响人的心境和感受的心理状态。 赶紧在心里默数数字，或者做深呼吸，这些方法能有效地使你平静下来。 要控制你的情感，这是你社交成功的必要心理基础。 工作一段时间的跟踪训练工作一段时间的跟踪训练 这种跟踪训练可分为两种：1、将员工进公司时因某种条件不具 备而没有施行的教育训练重新施 行，以帮助员工弥补欠缺的知识 和能力； 2、从员工工作中反馈的情况、出现 的问题人手，对过去的训练计划 再作修正，调整训练内容。 去谈论他感兴趣的吧 谈论别人感兴趣的

6、话题。 惟一能影响别人的方法，是谈论他所要的，教他怎样去得到。 与人谈话时最佳反馈方式不是评论，而是作描述性的回答，或是以简短的语言复述对方的谈话。把朋友的秘密锁在心里，钥匙扔向大海 朋友间必须是患难共济，那才说得上真正的友谊。 信用不是一朝一夕所能建立起来的，是平日累积而成，由事实表现出来。 为朋友保守秘密，尊重个人隐私，就是尊重他人。10walmarts strategy1.strategy : entry modewalmart expands their international operations throughoperating income from internationa

7、l operations grows rapidly entry modeno. of storescountriesjoint ventures619mexico, brazilacquisitions580canada, germany, southkorea, united kingdomowned subsidiaries52puerto ricogreenfield operations37argentina, chinatotal (in 2003)1288in billion $11walmarts strategy2. strategy : price every-day-lo

8、w-price (edlp)always price some offers lower than other local retailerslow costs3. strategy : customer orientationten-foot rule greeter loyalty cards4. strategy : supplier relation efficient supply chain and vendor relations12walmarts strategystrengthsopportunitiesweaknessesthreats powerful global b

9、rand name inexpensive offers to customers high degree of customer orientation very strong in the us market strong vendor relations efficient supply chain huge bargaining power big financial resources globalisation and liberalisation open up new markets and give an opportunity to expand k-mart and ta

10、rget take local market share in the us no big growth potential in the home market (us) rely on their suppliers (product assortment) enter new markets without considering adaptation 13why did walmart fail in germany?influencing factors why walmart failed in germanymacroenvironmental factorsmicroenvir

11、onmental factorsinternal factorswhy did walmart fail in germany ?“wal-mart germany: a problem of size“, (deutsche lebensmittelzeitung, 2002)14the macroenvironment in germanypoliticalsocioculturaleconomic german shopping habits different working culture germany - the biggest retail market in europe t

12、ough phase for german economy affected the retail industry high labour costs high real estate prices15 limited choice of entry modes german governments tax reform limitation of the store opening hours restraints of competition to protect small and medium-sized retailers requirement of disclosing bas

13、ic financial information strong protection of german workers from german unionsthe microenvironment in germanyhighly competitive, fully saturated retail marketdifferent operating system and store specifications of the acquired chainsconflict re. distribution system with suppliersvendor relations16in

14、ternal factorsvendor relations inventory problemsshortage of workersstruggled with difficult labour relationsinflexibility of operation managementlanguage skills of management17alternative responses to failure two scenarios for future growth1.scenario 1:stay in germanyrepositioning and rebrandingada

15、ptationdifferentiation and creation of new values“lean concept“2.scenario 2:withdrawal from the german market - entering new marketsfour step approachchecklearnadaptgo!18stay in germany but adapt1.repositioning and rebrandingwalmart could not fulfill their perceived image (“every-day-low-price“ and

16、high level of service)necessity to create a new brand name and image in the market2.adaptationadapt working culture and service culture to german “needs“eliminate activities that do not add value to customers (e.g. greeters, packers, shopping assistance) and, by doing so, reduce costscomply with ger

17、man legislation19stay in germany but differentiate3. differentiation and creation of new valuesconvince customers to shop at walmart rather than go to established competitorsshow innovative concepts that competitors do not offeroffer free home delivery service for elderly customers who shop in store

18、offer online shopping service offer free shuttle bus service to get to the shop20stay in germany but focus4. lean store conceptfocus on only one size for storeskeep medium-sized storessell stores that do not fit into the conceptbuy stores that complement concept in new regionsunify layout of storesp

19、ossibility to optimize supply chain (similar demand of goodsin every store = similar orders)21withdraw from germany and enter new markets but check1.checkwhich market is attractive + open to key strengths of the company where is the biggest match?matching points with a country (e.g.):- appreciation

20、for service designed by walmart- similar working and business culture- supplier networks that match walmarts vendor strategycountry attractiveness depends on (e.g.):- labour costs (in order to keep low prices)- market environment- number / size of competitors enough growth potential in the country-

21、legal restrictions for entrygo for itbut lower risk cooperation first?stay outand develop into more promising marketsonly go in,if you did enough research and be very sure that you can adaptonly go in,if you did enough research and be very sure that you can adaptcountry attractivenessgo for itbut lo

22、wer risk cooperation first?go for itbut lower risk cooperation first?only go in,if you did enough research and be very sure that you can adaptonly go in,if you did enough research and be very sure that you can adaptwalmart s compatibilitywith a countrycountry attractivenessgo for itbut lower risk co

23、operation first?go for it !stay outstay outstay out22withdraw from germany and enter new markets but learn2.learnwhat is the new market environment (typical behaviours, likes/dislike of consumers)?market research on behavioural aspectssend trend scouts to markets where market research is difficultwh

24、at can we learn from competition?is the market already saturated?which position in the market could a company take? which scope of competitive advantage is possible at market entry?23withdraw from germany and enter new markets but adapt3.adapt“as much as necessary, as little as possible“develop advantageous resources locallyallow the subsidiary to create its own strategyadaptation to. culture of customers. organizational and working culture. supplier systems. distribution systems24withdraw from germany and enter new markets then go !4.go !“think global, act local“25recommendationwithdra