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1、Case 4.1:Walmarts misadventure in Germany,Course:MSc in Strategic MarketingModule:International Marketing(BST 248)Lecturer:Dr.Stephanie SlaterDate:Monday,23rd November 2009,Group T1 members Aneeq Ahmed Ya-Han Chen Tsz-Sin Leung Wei Liu Pussarin Phalitnonkiat Dandan Ren Kerstin Walter,1,2,Agenda,Mile
2、stones in the Walmart history2.Walmarts strategy3.Why did Walmart fail in Germany?4.Strategic options,Milestones in the Walmart history,3,1962Sam Walton opens the first storeIn Rogers/Arkansas(USA)1967Sales reach$12.6 million with 24 stores 1980Walmart sales cross over 1 billion dollars$1.4 billion
3、from 276 stores 1991Walmart goes globalJoint 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 the worldSales
4、 of$244.5 billion with 4688 stores worldwide,4,Walmarts Strategy,1.Strategy based on four pillars:Entry modePriceCustomer orientationSupplier relation2.SWOT Analysis,1正确的步骤；2认识新员工的优点，针对其特长安 排工作；3协助新员工养成随时汇报工作、与 上级联络、与同事商量的习惯；4不仅注重结果，还要注意工作过程、方式方法，先求质量后求数量；5使员工了解工作的严格性，不走样 地执行上级意图；6培养员工的时间观念，尽量不给别 人增
5、添麻烦。,如何进行实际操作训练,学会思考，少闹情绪,情绪是一种能够在数小时、数日、甚至数周内控制和影响人的心境和感受的心理状态。赶紧在心里默数数字，或者做深呼吸，这些方法能有效地使你平静下来。要控制你的情感，这是你社交成功的必要心理基础。,工作一段时间的跟踪训练,这种跟踪训练可分为两种：1、将员工进公司时因某种条件不具 备而没有施行的教育训练重新施 行，以帮助员工弥补欠缺的知识 和能力；2、从员工工作中反馈的情况、出现 的问题人手，对过去的训练计划 再作修正，调整训练内容。,去谈论他感兴趣的吧,谈论别人感兴趣的话题。惟一能影响别人的方法，是谈论他所要的，教他怎样去得到。与人谈话时最佳反馈方式不
6、是评论，而是作描述性的回答，或是以简短的语言复述对方的谈话。,把朋友的秘密锁在心里，钥匙扔向大海,朋友间必须是患难共济，那才说得上真正的友谊。信用不是一朝一夕所能建立起来的，是平日累积而成，由事实表现出来。为朋友保守秘密，尊重个人隐私，就是尊重他人。,10,Walmarts Strategy,Strategy:Entry modeWalmart expands their international operations throughjoint ventures,acquisition,greenfield operations and wholly owned subsidiariesOp
7、erating income from international operations grows rapidly,in Billion$,11,Walmarts Strategy,2.Strategy:Price Every-Day-Low-Price(EDLP)Always price some offers lower than other local retailersLow costs3.Strategy:Customer orientationTen-foot rule Greeter Loyalty cards4.Strategy:Supplier relation Effic
8、ient supply chain and vendor relations,12,Walmarts Strategy,Strengths,Opportunities,Weaknesses,Threats,Powerful global brand 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
9、financial resources,Globalisation and liberalisation open up new markets and give an opportunity to expand,K-Mart and Target 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,13
10、,Why did Walmart fail in Germany?,Influencing factors why Walmart failed in GermanyMacroenvironmental factorsMicroenvironmental factorsInternal factors,Why did Walmart fail in Germany?,“Wal-mart Germany:A problem of size“,(Deutsche Lebensmittelzeitung,2002),14,The macroenvironment in Germany,Politic
11、al,Sociocultural,Economic,German shopping habits Different working culture,Germany-the biggest retail market in Europe Tough phase for German economy affected the retail industry High labour costs High real estate prices,15,Limited choice of entry modes German governments tax reform Limitation of th
12、e store opening hours Restraints of competition to protect small and medium-sized retailers Requirement of disclosing basic financial information Strong protection of German workers from German unions,The microenvironment in Germany,Highly competitive,fully saturated retail marketDifferent operating
13、 system and store specifications of the acquired chainsConflict re.distribution system with suppliersVendor relations,16,Internal Factors,Vendor relations Inventory problemsShortage of workersStruggled with difficult labour relationsInflexibility of operation managementLanguage skills of management,
14、17,Alternative responses to failure Two scenarios for future growth,Scenario 1:Stay in GermanyRepositioning and rebrandingAdaptationDifferentiation and creation of new values“Lean concept“2.Scenario 2:Withdrawal from the German market-entering new marketsFour step approachCheckLearnAdaptGo!,18,Stay
15、in Germany but adapt,Repositioning and rebrandingWalmart could not fulfill their perceived image(“Every-Day-Low-Price“and high level of service)Necessity to create a new brand name and image in the marketAdaptationAdapt working culture and service culture to German“needs“Eliminate activities that do
16、 not add value to customers(e.g.greeters,packers,shopping assistance)and,by doing so,reduce costsComply with German legislation,19,Stay in Germany but differentiate,3.Differentiation and creation of new valuesConvince customers to shop at Walmart rather than go to established competitorsShow innovat
17、ive concepts that competitors do not offerOffer free home delivery service for elderly customers who shop in storeOffer online shopping service Offer free shuttle bus service to get to the shop,20,Stay in Germany but focus,4.Lean store conceptFocus on only one size for storesKeep medium-sized stores
18、Sell stores that do not fit into the conceptBuy stores that complement concept in new regionsUnify layout of storesPossibility to optimize supply chain(similar demand of goodsin every store=similar orders),21,Withdraw from Germany and enter new markets but CHECK,CheckWhich market is attractive+open
19、to key strengths of the company where is the biggest match?,Matching points with a country(e.g.):Appreciation for service designed by Walmart Similar working and business culture Supplier networks that match Walmarts vendor strategy,Country attractiveness depends on(e.g.):-Labour costs(in order to k
20、eep low prices)-Market environment Number/size of competitors enough growth potential in the country-Legal restrictions for entry,22,Withdraw from Germany and enter new markets but LEARN,LearnWhat is the new market environment(typical behaviours,likes/dislike of consumers)?Market research on behavio
21、ural aspectsSend trend scouts to markets where market research is difficultWhat 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?,23,Withdraw from Germany and enter new mar
22、kets but ADAPT,3.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 systems,24,Withdraw from Germany and enter new markets then GO!,4.GO!“Think global,act local“,25,Recommendation,Withdrawal from Germany and invest into other markets300 million USD lossesDissatisfied customersBad image in the marketLegal problemsMany stronger competitorsLow potential for growth,26,THANK YOU FOR YOUR ATTENTION,27,
