Wal-Mart Stores Inc. is the largest retail company in the United States and has been ranked number one by Fortune Magazine. Wal-Mart has four parts to their corporate strategy. 1. Dominance in the Retail Market
2. Expansion in the U.S. and International Markets
3. Creation of Positive Brand and Company Recognition
4. Branch Out into New Sectors of Retail
If I were appointed as Thailand’s CEO of Wal-Mart to engage retail business in Thailand market, first I need to analyze the retain market in Thailand.
First I have to study the existing retail market of Thailand, like Tesco Lotus, Big C, IKEA, 7 – 11 etc. Then I have to evaluate Wal-Mart, Strengths, Weakness, Opportunities and Threads (SWOT) in the market.
Wal-Mart has one of the best track records on the market as a stock, being one of the best equities of all time. Warren Buffett of Berkshire Hathaway is a big investor. This should at least somewhat ease concerns from retail investors about the long-run viability of the company. Wal-Mart has created one of the most efficient distribution networks in retail, which helps enable it to be the "low cost leader." Thailand people give more value to western market then their own local market, so it will be easy start for western market to introduce in Thailand. b) Weakness
Wal-Mart's online site does not offer the same selection as many stores. Thailand's retail industry is in a state of flux.
While it has yet to fully embrace information technology, it is on its way to understanding more of the benefits of going online and mobile to keep up with the trends in the region and to better serve an increasingly tech savvy consumers.
Wal-Mart continues to expand internationally, which will be a key to raising earnings in the future The company cefinitely has room to grow online and strengthen its web business.
Wal-Mart has a lot of competition at the low end of the market with Family Dollar and Target, and it faces an increasing threat from Amazon online. Amazon is taking over the online of world of retail.
In Thailand competitors will be Tesco Lotus, Big C, Micro etc. Next, I will follow some characteristics of strategies and operations management to run the Walmart business to become the No. 1 in Thailand market. 1. At first I will listen to customers and be flexible and be willing to change. Every market has a unique local flavor. 2. Then I will consider a joint venture with a local leader. Benefit from his knowledge and talent. 3. I will respect local culture and adapt to local customs.
4. I will make a well-defined real-estate strategy. Do lots of research. 5. Invest in appropriate marketing and build a strong infrastructure. 6. Develop strong local management that has autonomy to respond to their market.
The retail industry is one of the more important industries in Thailand’s economy. The share of wholesale and retail trade, repair of vehicles, and personal and household goods in gross domestic product (GDP) is only second to that of manufacturing. Moreover, the retail sales index has increased from previous years. Introducing Wal-Mart in Thailand will be the great challenge and success in retail business.
If I become a CEO of Germany Company and I would like to invest Tuna manufacturing in ASEAN countries, then I will chose ‘Vietnam’.
Vietnam is located on the eastern Indochina Peninsula between the latitudes 8° and 24°N, and the longitudes 102° and 110°E. It covers a total area of approximately 331,210 km2 (127,881 sq mi), making it almost the size of Germany. The combined length of the country's land boundaries is 4,639 km (2,883 mi), and its coastline is 3,444 km (2,140 mi) long. So it will be easy to distribution Tuna in USA, Europe, China, Japan, Australia and New Zealand.
By looking at geographical way, Vietnam it is easy to catch seafood as well. Its location is also near to the USA, China,...
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