Turn-In.WALMART - Inefficient strategy in China •...

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Jeremy Klif I.D.: 9128653432 Case Turn-In: Wal-Mart “Everyday Low Prices” in China Wal-Mart successful strategy in the U.S. Opened stores in areas neglected by other retailers (cheaper to implement) which could only support one major retail center Lower prices on known brands and everyday products Attracted every types of customers (more customers, more sales) Competitive advantages: With a large number of suppliers, Wal-Mart has a huge purchasing power to bring down the prices and offer lower prices to its customers Use technology extensively which made its supply chain more efficient Created an enjoyable store experience Provided quality to its customers Excellent customer services
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Unformatted text preview: Inefficient strategy in China • Existing competition (Carrefour), issues with unions, higher wages for workers • Slow growth in rural areas and different types of consumptions • Less purchases per trip compared to the U.S. • Technology issues which was one of its competitive advantage in the U.S. • Higher costs of shipping because of Chinese infrastructures so less profits Recommendations • Fewer and larger suppliers to lower freight costs • Stay near big cities and highways to attract customers and ease supply chain • Buy up domestic retailers to avoid competition • Target growing middle class for customers with higher purchasing power...
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This note was uploaded on 02/11/2012 for the course MOR 492 at USC.

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