Case 5

CASE 5: Wal-Mart in America and Around the World
GROUP MEMBERS:
CELESTE, Jan Michael Dan O.
RONQUILLO, Ella Mae G.
SAN JOSE, Rafaela Yvonne Z.
VILLA, Jonas L.
Question: 1. With a saturation of stores in the rural areas in America, can Wal-Mart
employ the same strategies for setting up stores in the cities? Why or why not? What
difficulties may the company encounter?
Wal-Mart can employ the same strategies if they want to open new stores in cities since
their strategies focus mainly on the budget customers, as well as offering low cost products and
services, and the stores access to customers. While these strategies can help Wal-Mart successful
in setting up new stores in cities, there are also lots of difficulties that the company may
encounter such as being the target competition of other stores, locally or globally. Intense price
competition against competitors is major threat. Opening new stores also mean having additional
responsibilities and workloads thus, some areas might be left weak. Since Wal-Mart is offering
different kinds of products such as food, clothing, etc., it might have less flexibility compared to
its competitors who focus mainly on one thing.
Questions: 2. Can the organization culture, which was so effective in the United States, be
transferred to other countries? What changes, if any, would you suggest?
The good thing is most American products and services are embraced in the other
countries. Setting up a company is hard and growing your business is even more complicated.
You need to do a lot of things to do well, including having a great product and team for your
business in the international market.
Going overseas requires launching a team over that country to perform market research,
developing a strategy and business plan that coincides with the country’s culture, as well as
considering the style and behavior of the intended customers. Based on the product gap analysis,
take the necessary steps to market-ready your offerings to achieve high-impact product selling. It
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is also important to discover strategic partners. Embarking into a new territory would prove to be
difficult for a single entity to execute expansion smoothly. Always consider finding a strategic
partner for your business, one aware of all the new trends of the market in that region where you
are hoping to expand.
Questions: 3. Could competitors copy the inventory system of Wal-Mart?
Yes. Well, copying is always present in the competition between competitors. Once they
see the tactic is working, they copy it in their businesses, and for some, they even modify it for
better results. For the inventory system of Wal-Mart, which is real-time monitoring of products,
it is obviously helpful for the company since they can see real-time which product is best-selling,
and what is not, not only the store managers can track, but also the suppliers, so they can prepare
the products the store need as soon as possible. Competitors can easily copy the inventory system
by letting their IT program a software for inventory system which has a similar function as the
Wal-Mart’s.
Questions: 4. Would you like to be a manager at Wal-Mart? Why or why not?
Being a manager at Wal-Mart is not that bad. Wal-Mart has a good background in terms
of managing their employees which lead there business more to success. They are very clear at
treating their associates with mutual respect and giving motivation. They offered seminars and
training centers for those who want to get on the higher-paying management track. The “Yes We
Can Sam” suggestion system does bring a pleasant and even more welcoming environment for
the employees, as they also invite their associates to participate or be involve in making plans for
better development of the business. They also take in consideration of the store performance
which may does give additional incentives with their workers.
Questions: 5. What should Wal-Mart do to be successful in other countries? How can Wal-
Mart control the global enterprise?
Taking a small business global is a complex and dynamic process that could disrupt
existing business activities. Gaining a deep understanding of the targeted markets, the
competition, current local market trends, and the requirements to successfully launch and drive
growth lays an important foundation.
Before going global, it is critical to understand what the full impact on your business will
be. It is important to perform market research and determine if your product will sell in the local
market. Prepare a product gap analysis, if is there a demand that is not satisfied by a present local
company. Perform a SWOT and TOWS analysis against competition. Consider market
opportunity/sizing, on how big will be the market and how long will it take to capture your
targeted sales. Develop a plan and strategy that will stick around. In order to deal with different
markets in various countries, you need to develop a plan different from local business markets.
As a matter of fact, every country has its own rules and regulations in every sector such as legal,
economic, and political. So, develop different plans for different markets from specific
requirements of the region. It is necessary to consider if the owner is comfortable in that country,
if the demands of customers coincides with your product While analyzing the demand for
products and services, you should also understand the behavior of your customers and consumers
in new territories. No matter how good the quality of your products and services are, if it doesn’t
suit the style and behavior of the intended customers, then it will make no sense to your business.
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CASE 5: Wal-Mart in America and Around the World

Questions: 3. Could competitors copy the inventory system of Wal-Mart?

Questions: 4. Would you like to be a manager at Wal-Mart? Why or why not?

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