WALMART CORPERATE LEVEL

STRATEGY
PRESENTED BY
Chioma Chimurunwa Osuagwu 215310115
Juchen 1808160000
 Why Walmart failed in Germany

Cultural differences-using Lots of competitors High price (internal)

the American culture (external)
(external)
Why Walmart succeed in UK

Price advantage (Internal)

Diversified products and services (Internal)

Political and economic environment (External)

Same culture
PESTEL and 5 FORCES Role (Germany)
Five forces
Pestel

◦ Legal ◦ Intensity of rivalry- lots of competitors

◦ Sociocultural- language ◦ Threat of substitution
◦ Political government – restriction on price ◦ Bargaining power of buyers
◦ Entrance to new market
PESTEL and 5 FORCES Role (UK)
PESTEL
◦ P-Political support for globalization
◦ E-.Continued growth of developing countries
◦ S- Healthy lifestyle trend,Cultural diversity tre
nd
◦ T- Increasing business automation
◦ E- Environmentally friendly products trend
◦ L -Employment regulations
FIVE FORCES
◦ Large number of firms in the retail market
◦ Large population of consumers
◦ Large population of suppliers
◦ Moderate availability of substitutes
◦ Moderate to high cost of brand developme
nt
 VRIO Framework (Germany)

Valuable- not able to Rare- lower cost is Imitate- it is not Organized- not well
exploit opportunity posses by tier costly to imitate organized should have
(customer service) competitors lower price by their employed a local
competitors
VRIO Framework (UK)

Valuable- Rare- Imitate- Organized-

 Value Chain ( Germany)

Supply chain-need Operations-good Distribution-nee- Marketing and After-sales

to identify suitable relation wit nee a distribution sales- motivate service- engage in
location suppliers center their sales force promotions
 Walmart Value Chain Analysis (UK)

01 02 03 04 05
Large number Large Large Moderate Moderate to
of firms in the population of population of availability of high cost of
retail market consumers suppliers substitutes brand
development
Walmart Value Chain
Analysis (Germany)
The VRIO / VRIN analysis and value chai
n analysis show that Wal Mart has a high
potential package delivery network.
However, the network has not yet fully cov
ered all the target customers in the market
that the company has operated
Corporate Strategy
Germany
UK

• They used forward vertical integration ◦ Used forward vertical integration

• Corporate diversification-related diversification
(constrained)
• Acquisition strategy- acquire two different com
panies which have different work culture. Wert
kauf- highly centralized, Intespar- Decentralize
d ding of the UK market, identified importan
• Their failure is attributed to their choices beca
use they neglected important factors when mo
ving globally
◦ Corporate diversification- related constrain
ed
◦ Merge strategy- Asda
◦ Their success was base on their understan
t factor and implemented the as they mov
e to the new market
Re-entering German Market- Strategic Al
liance
To enter Germany Consider borrowing or
market again they partnering with a local
consider Geographic firm in short- term
diversification before acquisition

To strengthen Improve skills on

competitive position by customer satisfaction
achieving lower cost, (enter new market)
Re-entering German Market

Beware of the market Access to distribution Learn how to expand their

uncertainty and gain more channels and market experts customer base (new
information (hedge against capabilities)
uncertainty)
How to succeed in Germany

Cost control Increase Customer Location selection

employee benefits positioning