Case Studies-Wal-Mart Changes Tactics 金梦珂1120329011 Comments: To duplicate Wal-Mart,War-Mart decides to develop international market. However,it finds the going tougher than expected in meeting international tastes. The six-year-old international operation is relatively tiny so far.This is mainly because of the following three reasons: 1.Losses forecast:Wal-Mart expects operations to be profitable.However, such enthusiasm is hard to sustain.The local markets have advantages that Wal-Mart doesn't have. 2.Distribution problems:War-Mart has a wide variety of merchandise which is hurting it.It is because of that it doesn't own its distribution system,it can't control deliveries nearly as well as it does in the United States,and there is some issue of shipping product on time and getting on the shelf.Besides,some local suppliers have difficulty meeting Wal-Mart's specifications for easy-to-handle packaging and quality control,forcing the retailer to rely so heavily on imported goods that it could have problems. 3.Various mistakes:Analysts say Wal-Mart failed to do its homework before plunging in.It has been slow to adapt to Brazil's fast-changing credit culture. Suggestions: Wal-Mart should do more analyses before it starts its business in another country next time.It should consider more information about the circumstance in that country,such as the local markets,distribution system.Besides,it should change its policies to adapt to the circumstance.Only after it adapts to the circumstance can it consider development
Case Studies - Wal-Mart Changes Tactics 金梦珂 1120329011 Comments: To duplicate Wal-Mart, War-Mart decides to develop international market. However, it finds the going tougher than expected in meeting international tastes. The six-year-old international operation is relatively tiny so far. This is mainly because of the following three reasons: 1. Losses forecast: Wal-Mart expects operations to be profitable. However, such enthusiasm is hard to sustain. The local markets have advantages that Wal-Mart doesn’t have. 2. Distribution problems: War-Mart has a wide variety of merchandise which is hurting it. It is because of that it doesn’t own its distribution system, it can’t control deliveries nearly as well as it does in the United States, and there is some issue of shipping product on time and getting on the shelf. Besides, some local suppliers have difficulty meeting Wal-Mart’s specifications for easy-to-handle packaging and quality control, forcing the retailer to rely so heavily on imported goods that it could have problems. 3. Various mistakes: Analysts say Wal-Mart failed to do its homework before plunging in. It has been slow to adapt to Brazil’s fast-changing credit culture. Suggestions: Wal-Mart should do more analyses before it starts its business in another country next time. It should consider more information about the circumstance in that country, such as the local markets, distribution system. Besides, it should change its policies to adapt to the circumstance. Only after it adapts to the circumstance can it consider development