Therefore, Wal-Mart intends to achieve a high growth rate in foreign countries to hedge against the slow business in the domestic markets.
It has formed a consortium named Sinergia, with Sosia and Gigante, which are local Mexican retailers. It would be beneficial for Wal-Mart to have suppliers in different countries because: The reduction in tariff has therefore, benefited the suppliers as well.
Questions at the end of the case study are related to the efforts made by Walmart to gain market in Mexico as well about the efforts made by local business to remain in competition and stay alive. Reasons for Wal-Mart to start international operations are: Comerci can also utilize bulk purchase just like Walmart which would compel its suppliers to offer their products on reduced prices.
Just as emerging economies open up, Wal-Mart opens stores globally to get first-mover advantage.
Walmart has the capacity to create a monopoly in the supply chain market by influencing suppliers to not offer prices to other businesses the same they offer to Walmart.
The case study has provided an overview of the different benefits that NAFTA has offered to Walmart and the inherited advantages that Walmart had over other store chains in Mexico. This is a great deal; of experience to understand the retailing business and apply this understanding and practice in different other locations and countries.
Strong centralized control is helpful for aligning local operations with the overall corporate objectives. Foreign operations would also help Wal-Mart identify potential new low-cost suppliers for domestic operations. Domestic revenues do not increase at a pace Wal-Mart wants them to.
This consortium might be able to pose threat to Walmart in the future if it has been able to find supplier who can provide them competitive supplies prices compared to Walmart. It would be possible for Comerci is much smaller when compared to Walmart. For instance, due to the recent downfall of the Argentine economy, Wal-Mart may experience difficulties if the Argentine government starts to employ policies that favor domestic producers rather than foreign companies.
Why would it be beneficial for Wal-Mart to have suppliers in different countries? What else do you think Comerci Mexicana S. What are the advantages and challenges of such a strategy, and how effective do you think it will be?
Comerci can engage also develop effective marketing strategies to attract Mexican consumers. Foreign economies remain strong and so the economic health of Wal-Mart will remain sound if it opens stores abroad.
What pitfalls and opportunities, other than those mentioned in this case, will Wal-Mart face over the next few years? But Comerci might look into its supply chain and make changes such that they can find suppliers for themselves across the borders in USA and Canada who can provide items on competitive prices to be presented in the consumer market.
Walmart is a business that heavily depends on suppliers for different kinds of supplies.
Wal-Mart wants to increase the volume of its purchases so that it can have a greater bargaining power with its suppliers; 2. On the other hand, it may be impossible to analyze customer preferences and understand cultural differences unless local managers control certain aspects of the business.
It has been tough to challenge Walmart. This is a competitive edge as other companies may not have the financial and storage capabilities compared to Walmart to make bulk purchases. Why would Wal-Mart want strong centralized control of its stores?
Wal-Mart could lose the market totally if it did not respond quickly. Other than a need to expand, what other reasons would Wal-Mart have for opening stores globally?
I have provided answers to these questions one by one in the following. In general, political instability is a major concern in South American countries. What has Comerci done in its attempt to remain competitive?
From the case study, I was able to observe that though Walmart has benefited from NAFTA, the agreement may not have been so beneficial for some Mexican businesses who do not have the capability to beat the prices of Walmart.
Walmart has been able to utilize its financial resources to make bulk purchases which could help in getting them even cheaper.
These suppliers are able to make quick profits from single purchases to Walmart therefore, they would not dare to offer the same prices for other businesses and in a way get Walmart against them.
The fact that suppliers have the opportunity to pay less tariff is an opportunity for Walmart to get the supplies for less prices compared to past."Why Would It Be Beneficial For Walmart To Have Suppliers In Different Countries" Essays and Research Papers Why Would It Be Beneficial For Walmart To Have Suppliers In Different Countries retail company said himself, Walmart has certainly appreciated everything their associates do for their business.
1. Other than a need to expand, what other reasons would Wal-Mart have for opening stores globally? 2. Why would it be beneficial for Wal-Mart to have suppliers in different countries? 3. Why would Wal-Mart want strong centralized control of its stores?
Why would Wal-Mart want strong local control of stores? 4.
mint-body.com would it be beneficial for Wal-Mart to have suppliers in different countries? It would be beneficial for Wal-Mart to have suppliers in different countries because: 1. May 18, · Does Walmart have to fight to survive? Will online retail be worse for workers? The pro-Walmart debaters pointed out that Walmart’s done a lot of good, for example: Cause their suppliers.
Walmart Allows Its Workers To Unionize In Other Countries, Just Not In The United States and use local suppliers.
The idea that Walmart negotiated with and made concessions to a labor union in. May 17, · Why would it e beneficial for Wal-Mart to have different suppliers in different countries?Status: Resolved.Download