Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 1 -
Name Vijay Kodandaraman Bysani Student I.D.Number 02913971 Course Master of Business Administration Unit Title Global and Transnational Strategy Unit Code SM 448 Unit Tutor Ron Phillips
Assignment Topic Analysis and Evaluation of Wal-Mart's Global / Transnational Strategy
Newcastle Business School
University of Northumbria
Newcastle
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 2 -
Table of Contents Particulars Page
1 List of Figures 4 2 List of Tables 5 3 List of Images 6 4 List of Appendices 7 5 Executive Summary 8 6 Introduction to Globalisation & Transnational Strategy in relation to Retailing 12 7 Introducing Wal-Mart 14 8 Wal-Mart and International Expansion 16 9 Internal Analysis - Analyzing Resources 18
9.1 Financial Resources 18 9.2 Human Resources 18 9.3 Physical Resources 18 9.4 Intellectual or Intangible Resources 19 10 Culture Analysis 20 11 The Pyramid of Organizational Development 21 12 BCG Matrix 24 13 P.E.S.T. Analysis 26
13.1 Political Influences 26 13.2 Economic Influences 26 13.3 Social Influences 26 13.4 Technological Influences 27 13.5 Key Summary 27
14 Five Force's Analysis 29 15 S.W.O.T. Analysis 32
15.1 Strengths 32 15.2 Weaknesses 32 15.3 Opportunities 32 15.4 Threats 33
16 Value Chain Analysis 34 16.1 Inbound Logistics 34 16.2 Operations 34 16.3 Outbound Logistics 35 16.4 Marketing and Sales 35 16.5 Service 35 16.6 Infrastructure 35 16.7 Human Resource Management 36
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 3 -
16.8 Technology Development 36 16.9 Procurement 36 16.1 Key Summary 37
17 Generic Strategy 38 18 Yip's Globalisation Drivers 42
18.1 Market Drivers 42 18.2 Cost Drivers 42 18.3 Country Drivers 42 18.4 Competitive Drivers 43 18.5 Key Summary 43
19 Competitive Advantage 46 20 Core Competences 48 21 Sustainable Competitive Advantage 49 22 Kay's Distinctive Capabilities 50
22.1 Architecture 50 22.2 Reputation 50 22.3 Innovation 50 22.4 Strategic Asset 51
23 Configuration and Co-ordination 52 23.1 Configuration 52 23.2 Co-ordination 53
24 Pressures for Co-ordination and Integration 54 25 Dicken's Framework 55 26 Transnational Model 56 27 Conclusion 58 28 Limitations of Report 60 29 References 67 30 Bibliography 72 31 Declaration 78
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 4 -
1. List of Figures Particulars Page
1 Figure 11.1.: The Pyramid of Organizational Development 22 2 Figure 11.2.: Comparative Analysis of K-Mart and Wal-Mart 23 3 Figure 12.1.: BCG Growth Share Matrix for Wal-Mart 25 4 Figure 17.1.: Porter's Generic Strategies 41 5 Figure 18.1.: Visual Representation of Yip's Drivers 45 6 Figure 26.1.: Wal-Mart's Transnational Strategy 57
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 5 -
2. List of Tables
Particulars Page
1 Table 6.1.: The Blind Men and The Elephant 10 2 Table 13.1.: P.E.S.T. Analysis 28 3 Table 14.1.: Five Force's Analysis 31 4 Table 18.1.: Yip's Drivers 44
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 6 -
3. List of Images
Particulars Page
1 Image 7.1.:Fortune Magazine Front Cover Featuring Wal-Mart 15
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 7 -
4. List of Appendices
Particulars Page
1 Appendix 1: Wal-Mart Income Statement 61 2 Appendix 2: Wal-Mart Balance Sheet 62 3 Appendix 3: Growth Rate Analysis (%) 63 4 Appendix 4: Wal-Mart Store Details 64 5 Appendix 5: Wal-Mart International Store Details 65 6 Appendix 6: Photographs of Wal-Mart Stores 66
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 8 -
5. EXECUTIVE SUMMARY
Globalisation in retailing is being driven by several factors, including low growth in domestic
markets, information technology, global consumer and shopping patterns, and the opening up
of new markets. However it is not easy for retailers to become global. Performance in foreign
markets depends on careful adaptation of the home formula, since there are still regional
differences and mostly local sourcing
RESEARCH AIMS AND OBJECTIVES
The author attempts to apply theory to practise by applying relevant theories and frameworks
in analyzing the short-listed organization and evaluate the firm’s global / transnational
strategy in accordance of its global drivers. This report has three main aims. First, it attempts
to identify and discuss the relevant frameworks. Second, it aims at applying these
frameworks in analysis to the short listed organisation. And finally, it concludes the direction
and nature of the firm’s global / transnational strategy directions. .
STRUCTURE OF THE REPORT
This report consists of parts, each of which is further divided into sub-sections covering
relevant areas to the topic under discussion.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 9 -
The first part introduces the reader to the report and also outlines the structure and topics of
discussion.
The second part defines and set the context to global / transnational strategy in relation to the
retail industry before setting the context to the short listed organization and giving the reader
a good background of current status of the organization with market forces.
The third part identifies key strategic issues with detailed analysis involving the external
environment and internal environment covering the near and far environment extending itself
into the culture and resources of the organization before exploring in greater analysis the
value chain.
The fourth part extends into the generic strategies adopted the organization and then explains
in detail the Yip’s globalisation drivers before concluding the competitive advantages and
core competencies and the sustainable competitive advantages.
The fifth part introduces Kay’s distinctive capabilities with greater analysis and extending
itself with the configuration and co-ordination of activities concluding with the pressures for
co-ordination and integration.
The sixth part introduces in analysis the transnational model. The final part sets the final
context linking all the key frameworks and analysis with the author’s own conclusions and
future directions and expresses the author’s limitation to this report.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 10 -
Table 6.1.: The Blind Men and The Elephant
THE BLIND MEN AND THE ELEPHANT
by John Godfrey Saxe (1816 -1887)
It was six men of Indostan To learning much inclined,
Who went to see the Elephant (Though all of them were blind)
That each by observation Might satisfy his mind.
The First approached the Elephant,
And happening to fall Against his broad and sturdy side,
At once began to brawl: “God bless me but the Elephant
Is very like a wall.”
The second, feeling of the tusk, Cried, “Ho! What have we here
So very round and smooth and sharp? To me ‘tis mighty clear
This wonder of an Elephant Is very like a spear!”
The Third approached the animal,
And happening to take The squirming trunk within his hands,
Thus boldly up and spake: “I see,” quoth he, “The Elephant
Is very like a snake!”
The fourth reached out an eager hand, And felt around the knee,
“What most this wondrous beast is like Is mighty pain,” quoth he;
“ ’Tis clear enough the Elephant Is very like a tree!”
The Fifth, who chanced to touch the ear,
Said: ”E’en the blindest man Can tell what this resembles most;
Deny the fact who can, This marvel of an Elephant
Is very like a fan!”
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 11 -
The sixth no sooner had begun About the beast to grope,
Than, seizing on the swinging tail That fell within his scope,
“I see,” quoth he, “the Elephant Is very like a rope!”
And so these men of Indostan
Disputed loud and long, Each of his own opinion
Exceeding stiff and strong, Though each was partly in the right,
And all were in the wrong!
Moral
So oft in theologic wars, The disputants, I ween,
Rail on in utter ignorance Of what each other mean,
And prate about an Elephant Not one of them has seen!
Source: Extracted from Mintzberg, Ahlstrand and Lampel, 1998.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 12 -
6. Introduction to Globalisation and Transnational Strategy in relation to
Retailing
Globalisation refers to growing economic interdependence among countries as reflected in
increasing cross-border flows of three types of entities: goods and services, capital and know-
how (Govindrajan and Gupta, 2001). The term globalisation can relate to any of several
levels of aggregation: the entire world, a specific country, a specific industry, a specific
company, or even a specific line of business or functional activity within the company
(Govindrajan and Gupta, 2001).
Transnational strategies although global in nature incorporate a global configuration and a
high degree of co-ordination allowing the business to retain local responsiveness
(Stonehouse, et. al., 2000)
The two most strategic expansion routes for international retail expansion are global and
multinational strategies (Sternquist, 1997). Global retailers replicate a standard format
throughout their expansion worldwide while multinational strategies result in adaptation of
their retail offering (Sternquist, 1997). Multinational retailer’s expansion is generally slower
than global retailers and the management is decentralized. Multinational target markets in
closer proximity. International expansions of retailers are challenging and unpredictable, and
a slow approach is healthy (Voyle, 2003).
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 13 -
As markets evolve, differentiation becomes more important. It’s interesting to note, most of
the industries, practically all the industries are attempting to globalize today like the
automobile industry has done over the last few decades. Automobile industry peaked during
the 1950s and since then there has been a decline and ever since it’s been growth of the major
players and consolidation of the smaller ones. Success in the motor industry comes not from
size and scale but from developing competitive advantages in operations and marketing these
advantages internationally (Kay, 2003).
Global brands are a recent phenomenon. Until 10 to 15 years there weren’t any global brands,
many companies were multinationals tending to function as a collection of individual
enterprises with separate factories and different products in each country. The manifesto of
global brands emerged in 1983 when Theodore Levitt published “The Globalization of
Markets”. It was the emergence of homogenisation. Enabling this was technology with mass
transport and communication and the disappearance of national tastes and preferences. The
multinational corporation operates in a number of countries and adjusts its products and
practices in each at high relative costs. The global corporation operates with resolute
constancy at low cost, as if the entire world were a single entity; it sells the same things in the
same way everywhere (Tomkins, 2003)
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 14 -
7. Introducing Wal-Mart
Wal-Mart is the world’s largest corporation (Fortune, 2003; Yoffie and Wang, 2002; Image
7.1.). Wal-Mart is also the largest private employer in the United States of America (Yoffie
and Wang, 2002).
Wal-Mart is U.S.A.’s biggest seller of DVDs, diamonds, groceries, toys, guns, CDs, apparel,
dog food, detergent, jewellery, sporting goods, videogames, socks, bedding, and largest film
developer, optician, private truck fleet operator, energy consumer, and real estate developer
(Fortune, 2003).
Americans save about US$10 Billion by shopping at Wal-Mart (Buffet, 2003). Wal-Mart’s
revenue accounted for 15% of the entire U.S. retail market in 2002, excluding automobiles
(Yoffie and Wang, 2002; Appendix 1). Sales globally have been affected over the recent
weeks. International sales increased 14.3% to $10.3 billion (Buckley, 2003; Appendix 1;
Appendix 3).
Wal-Mart’s revenues are forecast to approach $700 billion in 2010 (Fernie and Arnold,
2002). Wal-Mart has four large scale retail formats; Wal-Mart Stores, SAM’s Club, Wal-
Mart Supercenters and Neighbourhood Markets
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 15 -
Image 7.1.: Fortune Magazine Front Cover Featuring Wal-Mart
Source: Wal-Mart Annual Report, 2003.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 16 -
8. Wal-Mart and International Expansion
Wal-Mart was enticed into international markets by a conviction that it could achieve
competitive advantage abroad by applying its combination of technology, logistics and
human resources with its tremendous buying power with multinational consumer goods
suppliers (O’Higgins and Weigel, 2002).
Wal-Mart’s strategy has been to acquire companies and convert them into the Wal-Mart way
stores (Appendix 4; Appendix 5). European retailers like Carrefour and Ahold, have more
than 20 years of international experience than Wal-Mart.
Multinational retailer’s entry is usually by mergers & acquisitions, which is what Wal-Mart
did in its initial entry into Mexico, with a joint venture with CIFRA, the most powerful
retailer in Mexico (Sternquist, 1997). This results in a faster and more reliable learning
knowledge base. CIFRA enables Wal-Mart’s entry with stronger networks in the trade
especially with vendors and understanding the local needs and culture while Wal-Mart brings
in its competency like logistics and service (Sternquist, 1997).
The author feels Wal-Mart’s employees; especially the management are a key resource and
enable its contribution to its success. Casse (1994) argues people are not resources and
ethically should not be classified such. In an remarkable editorial in The Economist (2000),
Wal-Mart’s entry into Europe and global expansion plans have been heavily criticised and
undermined due to the inability of global sourcing capabilities of supermarket products and
apart from the already well established retail networks of chain stores and discounters like
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 17 -
Metro, Carrefour, Aldi which all individually and collectively dominate the market and aren’t
up for sale as Wal-Mart would try to.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 18 -
9. Internal Analysis – Analyzing Resources
9.1. Financial Resources
Wal-Mart is the world’s largest and most profitable retailer (Goddard, 1997; Appendix 1).
Wal-Mart’s pre tax return on sales was 8% during 1989 which was double the industry
standard and it continues to be the front runner till today (Goddard, 1997). Wal-Mart
commands market value 10 times more than its book value.
9.2. Human Resources
Wal-Mart promotes internal staff development and over 60% of its store managers are
promoted internally then direct recruits (Rugman and Girod, 2003). Wal-Mart believes in
recruiting people with a flair for customer service and trains them accordingly to its strong
company values. Employees are treated as owners as more than 70% of employees have
shares of the company and incentives are paid in stock options too (Goddard, 1997).
9.3. Physical Resources
Wal-Mart developed its computerized inventory system way back in 1970 that decreased
check-out and reordering times and built highly automated distribution centres, reducing
shipping cost and time. Wal-Mart has continued to be an innovator and has this has led it to
create and sustain its competitive advantage by being the first and to be continuous to replace
systems and processes replicated by competitors.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 19 -
9.4. Intellectual or Intangible Resources
Wal-Mart’s core resources are its customers which total over 40 million per year (Goddard,
1997). Wal-Mart has over 1.3 million associates (employees) at its stores, worldwide. The
author feels this itself is unique which helps Wal-Mart get 1.3 million unique, hardcore loyal
customers. Wal-Mart uses its technological capabilities to sustain its cost leadership in
distribution and superior inventory systems.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 20 -
10. Culture Analysis
Wal-Mart’s culture is as unique and distinctive as possible considering the mammoth that it
has grown into today. Usually firms even of a small and medium company find it hard to
maintain and build good customer service but Wal-Mart has always had it as its foundation
and till today preaches and practices exemplary customer service.
Wal-Mart’s Corporate Citizenship actively helps development of the community with
programs spread across education, health, and environment. Wal-Mart’s Code Adam, a
tribute to a lost child in a retail store helps prevent children getting lost in stores today which
make it a safer place for families to shop.
Wal-Mart’s Ten Foot Rule and Sundown Rule all promote the employees to treat the
customer right, first time, always (Rugman and Girod, 2003). Employees are treated as
Associates inspiring their status (Goddard, 1997; O’Higgins and Weigel, 2002).
The everyday morning cheers act as a ritual and cheer and energize the associates making
them part of the organization (Arnold, 2002). Associates acting as ‘greeters’ at the entrance
of every store worldwide is unique and makes the customer more welcome and special
(Goddard, 1997).
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 21 -
11. The Pyramid of Organizational Development
The pyramid of organizational development (Figure 11.1.) illustrates the six building blocks
of successful organizations (Flamholtz and Hua, 2003). In an interesting breakthrough
Flamholtz and Hua (2003) discuss how strategic building blocks of organizational
development develop into potential sources of competitive advantage. History has witnessed
the loss of sustainable competitive advantage gained by markets and products. Its open for
imitation and even first mover advantage is lost in time.
Analyzing it relation with Wal-Mart reveals an interesting picture of how true this model is.
In the empirical study conducted by Flamholtz and Hua (2003) with the framework in
comparison to K-Mart and Wal-Mart, the two leading discount retailers, the authors conclude
Wal-Mart has significant sustainable competitive advantages over K-Mart and all are
attributable to the firm’s infrastructure. Wal-Mart’s products and market definition are prone
to imitation unlike its infrastructure which can be attempted to be replicated but been
unsuccessful so far by competitors (Figure 11.2.).
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 22 -
Figure 11.1.: The Pyramid of Organizational Development: The Six Key Building
Blocks of Successful Organizations.
Source: Adapted from Flamholtz and Hua (2003).
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 23 -
Figure 11.2.: Comparative Analysis of K-Mart and Wal-Mart.
Source: Adapted from Flamholtz and Hua (2003).
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 24 -
12. BCG Matrix:
Although the BCG Matrix is used traditionally for particular product types within an
organization’s product portfolio, the author tries to represent the different formats of retail
stores adopted by Wal-Mart using the BCG Matrix. This analysis helps analyze the growth
potential of different formats of stores adopted by Wal-Mart and helps allocate necessary
resources.
It briefly appears the new store format ‘Neighborhood Markets’, is exceeding expectations
and this format is being rolled out successfully in new markets, thus placing itself under the
‘star’ (Figure 12.1.). The traditional ‘Discount Store’ continues to be Wal-Mart’s core
concept although it’s being slowly converted into other formats with the changing shopping
patterns but is still highly profitable and makes most of the revenue (Figure 12.1.). The
‘Supercenter’ and ‘SAM’S CLUB’ have established themselves as successful formats with
growth opportunities (Figure 12.1.).
Internationally the focus has been on the ‘Discount Store’ and ‘Supercenter’ format with
modest trials in the SAM’S CLUB format (Appendix 4; Appendix 5).
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 25 -
Figure 12.1.: BCG Growth Share Matrix for Wal-Mart
Source: BCG Matrix adapted from Mintzberg, Ahlstrand and Lampel, 1998.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 26 -
13. P.E.S.T. Analysis
13.1. Political Influences
The political influences in this industry is probably the most burning concern with
organizations going global and many countries restricting the growth of companies by many
countries. European Customs and Regulations heavily hamper expansion plans (O’Higgins
and Weigel, 2002). FDI in many countries are still heavily regulated and global companies
are yet to set foot into emerging markets like India (Table 13.1.).
13.2. Economic Influences
War on Iraq has had a negative impact on consumer spending and outlook. Disproportionate
levels of income and consumer spending in developing countries like India and China will
impact growth of global companies. Exchange rates affect global sourcing and pricing
policies on a day to day basis. Recent developments with Wall Street have helped foster a
better relation and helped in Wal-Mart’s listing and ratings (Table 13.1.).
13.3. Social Influences
Developing countries are not used to push type marketing and aggressive selling. Bulk
buying patterns predominantly present in USA, is non-existent in Asian countries. Language
and cultural factors is a barrier to globalisation. Anti-Globalisation movements in the recent
past has affected growth of global companies, especially companies originated USA (Table
13.1.).
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 27 -
13.4. Technological Influences
Development in technology and satellite systems has given a boost to Wal-Mart (O’Higgins
and Weigel, 2002). Basic infrastructure still lacks for effective warehousing and distribution,
the lifeline of a retail chain (Table 13.1.).
13.5. Key Summary
There appears to be legal and social hurdles ahead for global companies (Table 13.1.).
Expansion into growing and emerging markets throws in tremendous growth opportunity
though localisation would be a critical success factor. Infrastructure needs to be developed to
support activities of a global distribution channel to achieve global competitiveness.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 28 -
TABLE 13.1.: P.E.S.T. Analysis
Political Influences • European Customs and Regulations (O’Higgins and
Weigel, 2002). • FDI Restrictions • UK’s Zoning Regulations (O’Higgins and Weigel, 2002).
Economic Influences • War in Iraq • Global Terrorism • Exchange Rates • Low levels of productivity in Asian Countries • Wall Street Improvements (Fortune, 1998)
Social Influences • Marketing strategies ineffective • Absence of Bulk Buying • Language and Cultural Barriers • Anti-Globalisation Movements
Technological Influences
• Advances in Technology and Satellite systems (O’Higgins and Weigel, 2002)
• Lack of basic infrastructure
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 29 -
14. Five Force’s Analysis
The competitive environment for Wal-Mart definitely looks competitive (Table 14.1.).
Although Wal-Mart uses its clout around and bargains at the best possible lowest prices
stretching suppliers beyond the limit, it still has a lot of pressures from the market outside.
The bargaining power of suppliers and buyers is low with Wal-Mart having established a near
monopoly in its home market and increasing its market-share in its overseas operations. Wal-
Mart is already Canada’s and Mexico’s top retail chain and in UK is at the third position.
Threat of entry remains low in the home market and globally (Table 14.1.). The entry scene is
limited to existing retail chains as the cost of setup is substantial. Regulatory restrictions are
also a concern here. Threat of substitute products is low to medium with consumers having a
choice from different stores to buy the same product at highly competitive prices (Table
14.1.).
A sixth force, called the complementors enable the firm whose products or services work in
conjunction with enabling a synergistic effect (Grove, 1997; Table 14.1.). Wal-Mart sees
more customers than the banks do these days. Recent antitrust lawsuits over Visa and
MasterCard by retailers, headed by Wal-Mart, alleging the use of expensive debit cards and
the costs borne by the retailers may upset the market (Kelleher, 2003).
The intensity of competitive rivalry can be classified low to medium (Table 14.1.). The
power obtained by the low bargaining power of suppliers and buyers is offset by the threat of
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 30 -
substitutes and threat of entry. Overall a substantial amount of power still lies with Wal-Mart
considering the scale of operations and maturity in its industry.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 31 -
Table 14.1.: Five Forces Analysis
Bargaining Power of Suppliers
• Suppliers have lost power over pricing and other terms due to Wal-Mart’s size
• Wal-Mart is a key customer to most of its suppliers and they are totally dependent on Wal-Mart for business
• Wal-Mart engages in aggressive selling tactics
Low
Bargaining Power of Buyers
• Wal-Mart is the only store in many locations isolating competition and limiting consumers choice
• Community Building • Proactive customer service • Attractive and probably the best pricing
Low
Threat of Entry • High Investment Costs • Extensive investment in Information Technology • Extensive distribution network • Scale and scope of operations is high • Regulatory concerns
Low to Medium
Threat of Substitutes • Department stores charge higher • Wal-Mart has all types of formats serving all
types of customers • Category killers likes Barnes & Noble and Home
Depot can be a constant threat • Strong presence of national and international
retail chains and maturity in markets like Europe - (O’Higgins and Weigel, 2002)
• Loyalty schemes run companies like Tesco in UK have 10 million members - (O’Higgins and Weigel, 2002)
• Weakness in home market with Kmart’s closure of additional 326 stores
• Market weakness with closure of Kmart will help Wal-Mart maintain better pricing power improving profitability.
Low to Medium
Intensity of Competitive Rivalry
• Price wars have reduced margins from 6% to 1% in the USA - (O’Higgins and Weigel, 2002)
• Bargaining power of Suppliers is Low • Bargaining power of Buyers is Low • Threat of Entry is Low to Medium • Threat of Substitutes is Low to Medium
Medium
Complementors • U.S.Mint chose Wal-Mart to introduce its Sacagawea Gold Dollar in 2000 and not any bank (Fortune, 2003)
Low
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 32 -
15. S.W.O.T. Analysis
15.1. Strengths
Wal-Mart is the largest corporation in the world (measured by turnover; Appendix 1) giving
it enormous status and recognition in the industry and new markets. Wal-Mart is great at
building and maintaining relationships with suppliers. Wal-Mart is a continuous learning
organization with integrated systems and frequent meetings with store and aisle managers and
systems that receive 8.4 million updates every minute on transactions from its stores
(Goddard, 1997; O’Higgins and Weigel, 2002). More than 70 million customers roam Wal-
Mart aisles each week (Fortune, 2003). Wal-Mart’s distribution centre and logistics
capabilities are a key strength adding value to its entire system. Wal-Mart’s cross-docking
and effective inventory managements gives it’s a 3% cost advantage which helps sustain its
Every Day Low Price strategy (Goddard, 1997).
15.2. Weaknesses
Wal-Mart shows little adaptability to its formats in overseas expansions (Colla and Dupuis,
2002). Wal-Mart is still to develop its expertise in international marketing. Shows weakness
in its expansion by not fulfilling expansion plan of opening 50 new stores in Germany during
2001 (O’Higgins and Weigel, 2002).
15.3. Opportunities
Growing middle class of consumers in emerging markets like China and India, gives Wal-
Mart a tremendous opportunity for global expansion. There is growing consolidation in the
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 33 -
market with the weak economy which is also leaving many competitors up for sale at below
book value. Growth of e-commerce enables a new business channel and Wal-Mart has
aggressively trying to capture and create its presence in this medium too.
15.4. Threats
Recent years have witnessed anti-globalisation movements affecting global companies and
American companies in general and Wal-Mart can face stiff resistance from consumers in
new markets. Recent wars and outbreaks have affected sales globally. Increased competition
in mature markets like Germany and U.K. with established retail chains dominating despite
Wal-Mart’s entry. Growing trade blocks and zoning regulations hamper Wal-Mart’s
expansion plans.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 34 -
16. Value Chain Analysis
16.1. Inbound Logistics
Wal-Mart’s primary activity of receiving inventory is planned right from the point of
production, which Wal-Mart is not involved with. Wal-Mart has integrated systems with key
suppliers which communicate in real time data with sales information and stock status so it
can replenished in time (Fortune, 2003). Shipments are timed and slotted and planned in an
orchestral way.
16.2. Operations
Wal-Mart maintains a lean approach to inventory (Rugman and Girod, 2003). Wal-Mart
innovated a technique of replenishment called the Cross-Docking where incoming goods are
offloaded into outgoing trucks directly without stocking them even for a few hours (Goddard,
1997). Most goods pass through the warehouses within a span of 48 hours, enabling
minimum idle time and lowering excess inventory possibilities (Goddard, 1997). Most of the
goods never touch the floor of the warehouse, as goods are passed on 24 miles length of
conveyor belts between incoming trucks to outgoing trucks (Fortune, 2003).
According to Ananth Raman of Harvard Business School, “Wal-Mart will rather extract fat
from the process than extract from the supplier’s profit” (Fortune, 2003). This statement
reaffirms the working style of Wal-Mart of working together with vendors enabling a win-
win situation for all concerned, the vendors; the organization (Wal-Mart); and the customers
eventually.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 35 -
16.3. Outbound Logistics
Goods are transferred within 48 hours of receipt from suppliers (O’Higgins and Weigel,
2002). The replenishments are also done twice weekly, which is double the industry’s
standard (Goddard, 1997).
16.4. Marketing and Sales
Wal-Mart maintains a simple and effective marketing strategy which it has managed to
replicate globally apart it being the focus of its strategy. The Every Day Low Price (EDLP) is
simple and eliminates unnecessary advertising trying to push sales, as Wal-Mart has
successfully sold the concept to the customers, that it sells its products at the lowest prices,
everyday (O’Higgins and Weigel, 2002; Goddard, 1997). This is one of the most interesting
attributes of Wal-Mart.
16.5. Service
Wal-Mart’s aggressive yet subtle ‘People Greeters’ and in its own fashionable and proud way
‘Aggressive Hospitality’ are the foundations for Wal-Mart’s success in the highly
competitive market (O’Higgins and Weigel, 2002).
16.6. Infrastructure
Wal-Mart maintains its own fleet of 2000 plus trucks which have scheduled deliveries
between warehouses to stores minimizing delays and over reliance from suppliers (Goddard,
1997).
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 36 -
16.7. Human Resource Management
Wal-Mart is the only retailer to be in Fortune’s 100 Best Places To Work (Rugman and
Girod, 2003). Wal-Mart’s empowerment of Associates is laudable with instances such as
allowing its Associates to get on the network and lower its prices, nationwide if its found to
be higher than its competitors, all this done without any consultation or permission requests
from superiors (Goddard, 1997; Arnold, 2002).
16.8. Technology Development
Wal-Mart’s technology and inventory management systems and software are better than the
best in the world and also the lifeline of the organization (Rugman and Girod, 2003). Wal-
Mart’s early innovations and experimentation apart from investments light-years ahead of its
time into VSAT capabilities have boosted its success.
16.9. Procurement
Wal-Mart’s satellite communication and electronic data interchange links all its stores to over
4000 suppliers creating the finest procurement co-ordinated scenario (Goddard, 1997). Wal-
Mart integrates its supply chain management activities with key suppliers like P&G with
direct shipments from P&G’s warehouses to Wal-Mart’s stores and warehouses (Goddard,
1997). Wal-Mart inventory management is so effective that over 70% of its merchandise is
purchased and paid for by customers, even before Wal-Mart has actually paid for the same to
its suppliers (Fortune, 2003). Wal-Mart has outsourced a substantial activity to USSO
enabling Wal-Mart to maintain its logistics costs.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 37 -
16.10. Key Summary
The beauty of Wal-Mart’s Value Chain is the scale of operations and the control it exercises
over each activity. Wal-Mart takes care of all the activities internally except partially
outsourcing its logistics requirements. Its systems integration from inventory, to stores, to
headquarters to suppliers is the lifeline of its success. Transportation undertaken by its own
fleet of trucks is an added advantage. The core activity remains in its bulk buying and
inventory management which supports Wal-Mart’s competitive advantage of pricing and
every element shows traces of cost leadership. Total integration is key here. Wal-Mart
located its discount stores around regional warehouses allowing a streamlined and low cost
physical distribution (Porter, 1990).
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 38 -
17. Generic Strategy
Analysis of Wal-Mart’s global generic strategy is complex and mystifying (Figure 17.1.). To
redefine that, does Wal-Mart have a global strategy is the argument.
Analysis of the value adding activities supporting the generic strategy shows clear elements
of cost focus. Low cost leadership helps the firm above average returns in the industry despite
strong competitive forces (Porter, 1980). Traces of cost leadership are noticeable in the value
chain. Wal-Mart saves costs by holding stocks for less than 48 hours in its inventory. Wal-
Mart is known to negotiate with suppliers for the lowest cost of the product without any frills
and marketing expenses which adds to the cost later. Wal-Mart’s purchase by the truckload
saves costs again by bulk purchasing. Wal-Mart’s inventory handling and logistics
distribution with its own fleet of 2000 plus trucks help attain a cost effective distribution
channel than relying on unreliable suppliers networks which costs in delays.
But is Wal-Mart’s strategy based solely on cost or does it have any other attributes based on
its characteristics. Wal-Mart appears to have a differentiation strategy. The differentiation
strategy is one of differentiating the product or service offering of the firm, creating
something that is perceived industry-wide as being unique (Porter, 1980). It can be design or
brand image, technology, features, customer service, dealer network or other dimensions
(Porter, 1980).
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 39 -
High degree of customer service with store greeters and ‘no questions asked’ policies
reaffirms Wal-Mart’s differentiation from its competitors. ‘Every Day Low Price’ strategy
helped reinforce Wal-Mart was the lowest price.
The third generic strategy advocated by Porter is the focus strategy. The focus strategy is
focusing on a particular buyer group, segment of the product line or geographic market as
with differentiation, focus may take many forms (Porter, 1980). Wal-Mart right from its
foundation located its stores to out of town areas with small populations. This was a segment
ignore by its competitors giving Wal-Mart an edge over competition by locating itself in a
low competitive environment before it creates competition. Wal-Mart’s focus on the segment
of people targeted as well as its location of stores, does give it an attribute of the focus
strategy.
Effective implementation of any of these generic strategies usually requires total commitment
and supporting organizational arrangements that are diluted if there is more than one primary
target (Porter, 1980). Arguably Porter termed organizations attempting cost leadership and
differentiation together as ‘stuck-in-the-middle’ and it does not lead to competitive advantage
and its sustainability.
Academic criticism is not new and Porter has received his share of it. Most strategists feel
low cost leadership alone, does not lead to competitive advantage unless there is an element
of differentiation (Stonehouse et. al., 2000). A strategy combining elements of low cost, price
and leadership is known as hybrid strategy (Johnson and Scholes, 1999). Mintzberg
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 40 -
advocated the hybrid strategy for it combines both elements of low cost leadership with
differentiation.
However, the fact can not be denied that Wal-Mart has a focus strategy as well as a
differentiation strategy. Overall the company thrives on cost leadership.
The global validity of these are tested with Wal-Mart’s core strategy in every market it
operates, it maintains cost leadership in all activities as well as it maintains its differentiation
by having exemplary service. The adoption of the focus strategy globally can be critiqued as
Wal-Mart is unable to expand into most markets like UK and Europe with tight zoning
regulations and its entry into these markets have been through mergers and acquisitions. But
the focus of the segment of customers targeted remains undiluted though the focus of location
geographically is understood to be compromised considering the market conditions.
The author feels if the above analysis holds true, Wal-Mart is a unique company which is
highly successful despite having different combinations with varying magnitudes of the
generic strategies.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 41 -
Figure 17.1.: Porter’s Generic Strategies
Strategic Advantage
Uniqueness Perceived by the
Customer Low Cost Position
Industry-wide DIFFERENTIATION OVERALL COST LEADERSHIP
Stra
tegi
c Ta
rget
Particular Segment Only FOCUS
Source: Adapted from Porter, 1980.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 42 -
18. Yip’s Globalisation Drivers
The analysis of the retail industry globalisation / localisation drivers reveals the following
(Table 18.1.; Figure 18.1.):
18.1. Market Drivers
Existence of homogenous consumer needs can not be ignored but at the same time, it is
highly localised due to the nature of products. Global brands are preferred but with local
tastes. Distribution channels hang-in-between global and local as global sourcing can’t be
ignored but lot of sourcing is done regionally. Marketing follows the same principle. Global
marketing with local themes and needs. Lead countries are Germany, France, U.S.A. and
U.K.
18.2. Cost Drivers
Cost drivers are in favour of globalisation except for research and development costs which
are marginal but needs to be catered to each market. Economies of scale are highly important
with margins wafer thin. Transport costs do not discourage centralized sourcing and
warehousing.
18.3. Country Drivers
Country drivers show a shift to localisation in this framework. There is still a marginal
amount of trade barriers though its being loosened up by the W.T.O. and pressure from
industry and markets are being built up.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 43 -
18.4. Competitive Drivers
Shift from localisation to globalisation. There is high volume of imports and exports but for
the global markets, there is more of internal sourcing compared with the volume of exports
and imports. Competitive interdependence of major markets is increasing with pressure from
global competitors entering the local markets.
18.5. Key Summary
Yip’s model shows the retail industry maturing in-between globalisation and localisation
(Table 18.1.; Figure 18.1.). Although many elements are in favour of globalisation, quite a
significant amount will continue to favour localisation like marketing and distribution and
customer choices. Maturity of the market can be expected but it will not favour a total
globalized market nor will be become highly localized. It can be classified as a regional
market or matured international market.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 44 -
Table 18.1.: Yip’s Drivers – Analysis with Wal-Mart / Discount Merchandisers
Globalisation Localisation Market Drivers
• Global homogenous customer needs are present but localisation of the products can not be ignored today as consumers are shifting from globalisation to glocalisation.
• Global distribution channels exists on the whole but its still more on the local and national sourcing due to the nature of products dealt with.
• Again marketing as a principle and a guiding policy of the company exists. But marketing is tailored to local tastes and preferences.
• Lead countries exists like Germany, France, U.S.A., and U.K. Cost Drivers
• Research and development costs are significantly lower in this industry • Economies of scale are highly significant • Transport costs do not discourage centralized production (sourcing/warehousing). • Wide choice of countries to place production
Country Drivers • Low trade barriers but being built-up rapidly legally and by the industry and markets. • Divergence of national standards • Retention of national cultural and institutional norms
Competitive Drivers • High volume of imports and exports in the home-country can’t be ignored but the rest
of the operational countries have a limited volume of imports and exports. • Competitive interdependence of major markets between countries • New global competitors have entered the local market
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 45 -
Figure 18.1.: Visual Illustration of Yip’s Drivers
Note: The red line denotes the extent of the force driving from globalisation to localisation. The blue line denotes the extremes of the forces. The brown line denotes the mid-range giving a clear view to the extent the industry is.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 46 -
19. Competitive Advantage
Analysis of the generic strategy and the supporting value chain, gives us a good insight into
sources of Wal-Mart’s competitive advantage. When two or more firms compete within the
same market, one firm possesses competitive advantage over its rivals when it earns a
persistently higher rate of profit (Grant, 2002).
Wal-Mart’s capability to outperform its rivals is achieved with its ability to outperform its
competitors quickly and effectively. Supporting this is its, highly integrated systems,
technological advances, highly efficient inventory management skills, few markdowns and
few stock-outs. This is supported also by its corporate culture encouraging and rewarding
initiative and innovation.
Wal-Mart’s achieves competencies from:
• Cross docking
• Supply chain management
• Communication strategy with suppliers and associates
• Relationship strategy with suppliers and associates
• People strategy
• Cost strategy
• Location and market strategy
• Ability and inspiration from Sam Walton
• Customer service strategy
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 47 -
• Knowledge management
• Innovation in I.T. and warehousing and inventory management
Although an exhaustive list, Wal-Mart does achieve and maintain the above in proportions
unseen in its industry. Although they are imitateable, competitors have been unable to
replicate the entire series and sustain it.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 48 -
20. Core Competences
Prahalad and Hamel (1990) define core competences as the collective learning of the
organization, especially how to co-ordinate diverse production skills and integrate multiple
streams of technologies. The cumulative learning acquired with experience in an industry
enhances a firm’s competence (Hamilton, Eskin and Michaels, 1998).
Wal-Mart’s core competence can be said to be its knowledge achieved by its inventory
management skills with its supply chain management facilitated by its innovations like the
cross-docking techniques and its innovation in information technology and in relationship
strategy maintained with its customers, suppliers, and associates and its cost strategy
achieved with its scale of operations.
This passes the three tests whereby it’s providing added value to customers and is difficult for
competitors to imitate considering the scale of operations to achieve such economies and
provides access to wider markets.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 49 -
21. Sustainable Competitive Advantage
Wal-Mart’s sustainable competitive advantage can be attributed to its cost advantage
supported by its ‘inventory management skills and processes’ and expertise in ‘supply chain
management’ (which can not be replicated considering the scale of operations) and its culture
which promotes aggressive customer service and satisfaction through satisfied and happy
associates.
The ability to build and maintain relationships with its customers, suppliers, and its associates
and its speed in innovation and initiative ness is also a source of sustainable competitive
advantage.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 50 -
22. Kay’s Distinctive Capabilities
Kay (1993) explains distinctive competitive advantage in terms of distinctive capability.
Analysis of Wal-Mart’s distinctive capabilities includes the following:
22.1. Architecture
Wal-Mart’s internal architecture with its associates are phenomenal and the way it manages
its one million plus associates. Wal-Mart’s collegiate culture encourages innovation and
learning. Externally Wal-Mart enjoys a unique relationship with its suppliers who go to the
extent of locating their offices near Wal-Mart’s headquarters.
22.2. Reputation
Wal-Mart enjoys tremendous reputation in the industry for its standards and living up to
them. Wal-Mart’s ranking’s in the industry with its phenomenal growth and value for money.
It has also established itself as the lowest price retailer with the highly effective marketing of
the EDLP (Every Day Low Price) concept.
22.3. Innovation
Wal-Mart has a reputation for innovation with the formats of stores introduced and its ability
to replicate with adaptations to suit local markets. Innovations in technology by using VSAT
light years ahead of its times and its warehousing and cross-docking techniques are laudable.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 51 -
22.4. Strategic Asset
Although Sam Walton exists no more, he was a strategic asset and still is with his values
deeply imbibed within the company’s culture. Wal-Mart’s benefits from the brand it has it
has created and its market position strategy.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 52 -
23. Configuration and Co-ordination
23.1. Configuration
Wal-Mart’s configuration can said to be of ‘concentrated’, understanding its distribution and
warehousing facilities within the USA. The goods are sourced from within as well as
globally; with over $240 billion worth of goods to sell, the sourcing is not limited to one
country or a few countries alone. The main reason for sourcing externally is for cost
advantage. Although Wal-Mart doesn’t manufacture the products it retails, it retails its store
branded products which are sourced from private label manufactures. Most dry groceries and
clothing apart from hand made products are sourced from Asian countries.
As a case in point, Wal-Mart sources goods from China for more than 20 years with growth
every year. During the last fiscal year, Wal-Mart sourced about $10 billion in Chinese made
merchandise, directly from manufacturers in China and from other suppliers that source their
goods from China (World Bank, 2002).
Although the transport costs are usually marginally high, Wal-Mart undertakes its own
distribution and warehousing activities with its strong fleet of 2000 plus high end trucks
which have a turnaround in cycle time better than within the industry.
The complexities of the global value change differ from the traditional value chain.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 53 -
23.2. Co-ordination
Co-ordination involves sharing information, allocating responsibility and aligning efforts
(Porter, 1990). Wal-Mart couldn’t have been more successful if it didn’t fulfil this. Wal-Mart
realized in its early years, the ultimate source of its competitive advantage of cost can only be
supplemented and supported by the effective co-ordination of its value chain activities.
Technological advances were done light years ahead of its time. Unattributable sources, part
of the industries talk is, Wal-Mart has more technology capabilities in its head-office than
NASA. Wal-Mart has linked all its stores globally with VSAT technology which relays sales
and product and any other information tracked by its systems to its head-office. This helps it
source the right product at the right time to the right place helping minimize excess inventory
apart from having the most ideal scenario of real time information. Sounds more like Sci-fi
but Wal-Mart has state of the art technologies in place supporting the co-ordination of its
activities.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 54 -
24. Pressures for Co-ordination and Integration
Pressures for co-ordination and integration are need for cost reduction and real time
information apart from the need for optimum responsiveness to changes in the market,
globally. Presence of multinational competitors is also key.
Pressure for local responsiveness is the differences in customer’s needs and preferences apart
from the cultural diversity to be taken into account. The shopping habits and lifestyles of the
customers make a total difference. In USA, customers buy in bulk to save costs apart from
time, although this sound ideal to any value conscious customer, in Asian countries,
consumers have limited credit means and purchases are made on a need basis and more
frequently with financial constraints to be accounted for. Even small factors like storage
facilities in Asian countries are a limiting factor. Host government like in China place a lot of
restrictions and demands like timing and employee benefits and in Germany, price has to be
maintained for 2 months to be declared lowest price. Distribution channels are not very
reliable in many countries and need for local responsiveness arises with such instances.
Analyzing the co-ordination and configuration activities of Wal-Mart using Porters (1990)
framework, shows us Wal-Mart has a global strategy with the high co-ordination of activities
with its configuration geographically concentrated.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 55 -
25. Dicken’s Framework
The Dicken’s (1998) four production strategies is not illustrated as it’s a framework highly
suited for manufacturing based organizations eliminating its application for a non-
manufacturing company like Wal-Mart.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 56 -
26. Transnational Model
A transnational strategy combines global and local strategy features in order to gain
competitive advantage according to the indications of globalisation driver analysis
(Stonehouse, et. al., 2000). Analysis of Wal-Mart applied with the transnational model
framework reveals us the true picture of Wal-Mart (Figure 26.1.).
Considering the changes in the macro-environment and the globalisation drivers, we can
understand the following pressures for globalisation and localisation. There are strong
globalisation forces with the concentration key value adding activities and the emergence and
presence of global brands and advertising. Centralised decision making and global sourcing
also add to the pressures of globalisation.
Acting on the localisation force which is significantly weaker compared to the globalisation
forces are the local variations to the marketing strategy and local product variations. Both
signify the importance of localisation despite the globalization of markets.
The global core competence / distinctive capability, global generic strategy, integration and
co-ordination of global activities, differentiated architecture and participation in key markets
are all elements of Wal-Mart’s global strategy.
On the basis of the Transnational Model, Wal-Mart appears to be a transnational company.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 57 -
Figure 26.1.: Wal-Mart’s Transnational Strategy
Global Strategy Options Local Strategy Options
Transnational Strategy Source: Transnational model adapted from Stonehouse, et. al., 2002.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 58 -
27. CONCLUSION
Wal-Mart considering its scale and scope of operations has given a dynamic perspective in
analysis of the many frameworks analyzed with. Strategists like Govindrajan and Gupta, who
specialize in globalisation, endorse and acknowledge Wal-Mart as a global organization and
highly lauding Ironically, Rugman, argues, Wal-Mart as a regional player with regional
strategy considering that Wal-Mart has only 9.6% of its stores outside its home region and
only 16.3% of revenue is generated from stores outside its home country.
Again considering classification such as the NAFTA and the TRIAD, large economies
(Countries) are clubbed together and treated as one which the author disagrees to justify as
one. Arguments such as only a certain percentage of business is generated outside the TRIAD
making a business less global are arguments the author disagrees with. With the EU
becoming as one then soon, the world will become large chunks of amalgamations. The
simple definition or presence in different markets should be taken into consideration of being
global. Many strategists do not give concessions for the time the business has started to
expand globally. Wal-Mart for instance has grown to such a strong position over 40 years,
this would take considerable time to replicate and adapt in international markets.
Analysis using Yip’s Globalisation / Localisation Drivers shows the industry and Wal-Mart
in general moving towards globalisation but yet maintaining key aspects to localisation. This
could be the way ahead. The Transnational Model illustrates the same key aspect. Marketing
strategy and product variation though it can be global, it needs to be tuned to the local market
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 59 -
catered considering the emergence of localisation preference in consumers. The market has
gone too global, that consumers place an emphasis of localisation.
The author concludes this paper, with scepticism if Wal-Mart is truly a transnational
organization as yet even though most of the analysis favour in that direction.
Acknowledgements are made that the industry is maturing far greater than
Internationalisation but it’s yet to be seen as a global player. But it’s a matter of time before it
expands it to new markets and creates a foothold.
The correlation of the fable used in the beginning of the report, ‘The blind men and the
elephant’, is to exemplify the understanding of globalisation and transnational as yet with
strategists each looking at different paradigms, though this would settle in due course, before
there emerges yet another classification and extension, which time has always witnessed and
will witness.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 60 -
28. Limitations of Report
This report tries to emphasize the firm’s global / transnational strategy in accordance to the
global drivers. It has to be taken into account that the subject of discussion is still evolving
and emerging and can be highly disputed.
This report is limited to the fact with considerations to time and information available on the
subject of discussion, apart from the limitation set by the word limit prescribed for this report
and tries to briefly touch upon the most important analysis.
The author tries to emphasize on theoretical knowledge and empirical research and data
already available on the subject of discussion.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 61 -
Appendix 1: Wal-Mart Income Statement Particulars 1998 1999 2000 2001 2002Net Sales 117958 137634 165013 191329 217800Net Sales Increase 12% 17% 20% 16% 14%Other Income 1341 1574 1796 1966 2013Cost of Sales 93438 108725 129664 150255 171562Operating, Selling, General & Administrative Expenses 19358 22363 27040 31550 36173Net Income 3526 4430 5576 6295 6671
Source: Adapted from Wal-Mart Annual Report 2002; Yoffie and Wang, 2002.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 62 -
Appendix 2: Wal-Mart Balance Sheet Particulars 1998 1999 2000 2001 2002Current Assets 19352 21132 24356 26555 28170Total Assets 45384 49996 70349 78130 83375Current Liabilities 14460 16762 25803 28949 27173Shareholder's Equity 18503 21112 25834 31343 35102
Source: Adapted from Wal-Mart Annual Report 2002; Yoffie and Wang, 2002.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 63 -
Appendix 3: Growth Rate Analysis (%) Particulars 1998 1999 2000 2001 2002Net Sales Growth 12.5 16.7 19.9 15.9 13.8Net Income Growth 15.4 25.6 25.9 12.9 6.0Total Assets Growth 14.6 10.2 40.7 11.1 6.7Equity Growth 7.9 14.1 22.4 21.3 12.0
Source: Adapted from Wal-Mart Annual Report 2002; Yoffie and Wang, 2002.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 64 -
Appendix 4: Wal-Mart Store Details Particulars 1998 1999 2000 2001 2002Number of Domestic Discount Stores 1921 1869 1081 1736 1647Number of Domestic Supercenters 441 564 721 888 1066Number of Domestic Sam's Club Stores 443 451 462 475 500Number of Neighborhood Markets 0 0 7 19 31Number of International Stores 601 715 1004 1071 1170Average Wal-Mart Store Size (sq.ft.) 93400 94300 108383 111543 116795Net Domestic Square Footage (millions) 313.2 333.1 358 386.9 417.8Net Sales Per Square Foot $348 $413 $373 $384 $403 Gross Margin 20.80% 21.00% 21.40% 21.50% 21.20%Associates (Employees) 825000 910000 1140000 1244000 1383000
Source: Adapted from Wal-Mart Annual Report 2002; Yoffie and Wang, 2002.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 65 -
Appendix 5: Wal-Mart International Store Details
Total No. of Stores Supercenters
SAMS CLUBS
Date of Market Entry
Puerto Rico 17 0 7 Aug-92 Mexico 551 63 46 Sep-93 Canada 196 0 0 Mar-94 Argentina 11 11 0 Nov-95 Brazil 22 12 8 Nov-95 China 19 16 2 Aug-96 Germany 95 0 0 Aug-97 South Korea 9 0 0 Jul-98 United Kingdom 250 0 0 Jul-99
Source: Adapted from Wal-Mart Annual Report 2002; Yoffie and Wang, 2002.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 66 -
Appendix 6: Photographs of Wal-Mart Stores
Source: Wal-Mart Annual Report 2002.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 67 -
29. References
Arnold, S.J. (2002) Lessons learned from the world’s best retailers. International Journal of
Retail & Distribution Management, Vol. 30 No. 11, p. 562-570.
Arnold, S.J. and Fernie, J. (2000) Wal-Mart in Europe: prospects for the UK. International
Marketing Review, Vol. 17 No. 4/5, p. 416-432.
Buckley, N. (2003) Weak Sales fail to dent Wal-Mart. The Financial Times, 14 May, p.
Buffet, W. (2003) Fortune. Vol. 147 No.4, p. 41-48.
Casse, P. (1994) People Are Not Resources. Journal of European Industrial Training, Vol. 18
No. 5, p. 23- 26.
Colla, E. and Dupuis, M. (2002) Research and managerial issues on global retail competition:
Carrefour / Wal-Mart. International Journal of Retail & Distribution Management, Vol. 30
No. 2, p. 103-111.
Dicken, P. (1998) Global Shift – Transforming the World Economy. London.
Fernie, J. and Arnold, S.J. (2002) Wal-Mart in Europe: prospects for Germany, the UK and
France. International Journal of Retail & Distribution Management, Vol. 30 No. 2, p. 92-102.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 68 -
Flamholtz, E. and Hua, W. (2003) Searching for Competitive Advantage in the Black Box.
European Management Journal, Vol. 21 No. 2, p. 222-236.
Fortune (2003) Fortune. Vol. 147 No.7, p.29-38.
Fortune. (2002) Fortune. Vol. 145 No. 8, p. 42-46.
Goddard, J. (1997) The Architecture of Core Competence. Business Strategy Review, Vol. 8
No. 1, p. 43-52.
Govindarajan, V. and Gupta, A.K. (2001) The Quest For Global Dominance: Transforming
Global Presence into Global Competitive Advantage. San Francisco: Jossey-Bass.
Grant, R.M. (2002), Contemporary Strategy Analysis: Concepts, Techniques, Applications.
Fourth Edition. United Kingdom: Blackwell Publishing.
Grove, A.S. (1997) Navigating Strategic Inflection Points. Business Strategy Review, Vol. 8
Issue 3, p. 11-18.
Hamilton, R.D., Eskin, E.D. and Michaels, M.P. (1998) Assessing Competitors: the Gap
between Strategic Intent and Core Capability. Long Range Planning, Vol. 31 No. 3, p. 406-
417.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 69 -
Johnsons, G. and Scholes, K. (2002) Exploring Corporate Strategy Text and Cases. Sixth
Edition. United Kingdom: Pearson Education Limited.
Kay, J. (1993) Foundations of Corporate Success. New York: Oxford University Press.
Kay, J. (2003) Survival of the fittest not the fattest. The Financial Times, 27 March, p. 21.
Kelleher, E. (2003) Dramatic market change could be on the cards. The Financial Times, 28
April, p.
Mintzberg, H., Ahlstrand, B. and Lampel, J. (1998) Strategy Safari: The complete guide
through the wilds of strategic management. Great Britain: Pearson Education Limited.
O’Higgins, E.R. and Weigel, J.R. (2002) Has Sam’s magic passed its sell-by date?. Business
Strategy Review, Vol.13 Issue. 3, p. 52-61.
Porter, M.E. (1980) Competitive Strategy: Techniques for Analyzing Industries and
Competitors. New York: The Free Press.
Porter, M.E. (1990) The Competitive Advantage of Nations. New York: Palgrave.
Prahalad, C.K. and Hamel, G., (1990) The core competence of the corporation. Harvard
Business Review, p.79-91.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 70 -
Rugman, A. and Girod, S. (2003) Retail Multinationals and Globalization: The Evidence is
Regional. European Management Journal, Vol. 21 No. 1, p. 24-37.
Sternquist, B. (1997) International expansion of US retailers. International Journal of Retail
& Distribution Management, Vol. 25 No. 8, p. 262-268.
Stonehouse, G.H., Hamill, J., Campbell, D. and Purdie, A. (2000) Global and Transnational
Business – Strategy and Management. England: John Wiley.
The Economist. (2000) Wal-Mart: Chimera. The Economist, Vol. 354 No. 8155, p. 92-95.
Tomkins, R. (2003) Brands: As hostility towards America grows, will the world lose its
appetite for Coca-Cola, McDonald’s and Nike?. The Financial Times, 27 March, p. 19.
Voyle, S. (2003) Tesco proves its overseas credentials. The Financial Times, 9 April, p.
Wal-Mart (2002) Wal-Mart Annual Report 2002.
Wal-Mart, (2003) Wal-Mart Annual Report 2003 [Online].
Available from: http://www.walmartstores.com/Files/AR_2003_Report.pdf [Accessed 2 May
2003].
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 71 -
World Bank. (2002) China Is Becoming the World's Manufacturing Powerhouse [Online].
Available from: http://www.worldbank.org/transitionnewsletter/octnovdec02/pgs4-6.htm
[Accessed 1 May 2003].
Yip, G.S. (2003) Total Global Strategy II. New Jersey: Pearson Education, Inc.
Yoffie, D.B. and Wang, Y (2002) Wal-Mart in 2002. Case 9-702-466, Harvard Business
School Publishing, Boston, MA.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 72 -
30. Bibliography
Alexander, N. and Myers, H. (2000) The retail internationalisation process. International
Marketing Review, Vol. 17 No. 4/5, p. 334-353.
Arnold, S.J., Kozinets, R.V. and Handelman, J.M. (2001) Hometown ideology and retailer
legitimation: The institutional semiotics of Wal-Mart flyers. Journal of Retailing, Vol. 77,
p.243-271.
Bartlett, C.A. and Ghoshal, S. (2000) Transnational Management: Text, Cases, and Readings
in Cross-Border Management. Third Edition. Singapore: McGraw Hill Book Co.
Bartlett, C.A. and Ghoshal, S. Going Global: Lessons from Late Movers. Harvard Business
Review, March – April, p. 132-142.
Bell, D.E. and Feiner, J.M. (2003) Wal-Mart Neighborhood Markets. Case 9-503-034,
Harvard Business School Publishing, Boston, MA.
Berry, L.L. (2001) The Old Pillars of New Retailing. Harvard Business Review, April, p.
131-137.
Bolen, W.H. and Davis, R.J. (1997) Overreaching For Mass Retailers. The McKinsey
Quarterly, No. 4, p. 40- 53.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 73 -
Bonnot, S., Carr, E. and Reyner, M.J. (2000) Fighting brawns with brains. The McKinsey
Quarterly, No. 2, p. 76-87.
Bradley, S.P. and Ghemawat, P. (2002) Wal*Mart Stores, Inc. Case 0-794-024, Harvard
Business School Publishing, Boston, MA.
Campbell, A. and Alexander, M. (1997) What’s Wrong With Strategy?. Harvard Business
Review, November – December, p. 42-51.
Chen, S. and Leteney, F. (2000) Get Real! Managing the Next Stage of Internet Retail.
European Management Journal, Vol. 18 No. 5, p. 519-528.
Christensen, C.M. (1997) Making Strategy: Learning By Doing. Harvard Business Review,
November – December, p. 141- 156.
Collis, D.J. and Montgomery, C.A. (1995) Competing on Resources: Strategy in the 1990s.
Harvard Business Review, July – August, p. 118-128.
Dawar, N. and Frost, T. (1999) Competing with Giants: Surviving Strategies for Local
Companies in Emerging Markets. Harvard Business Review, March – April, p. 119-129.
Enders, A. and Jelassi, T. (2000) The Converging Business Models of Internet and Bricks-
and-Mortar Retailers. European Management Journal, Vol. 18 No. 5, p. 542-550.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 74 -
Fahey, L. and Randall, R.M. (2001) The Portable MBA in Strategy. Second Edition. Canada:
John Wiley & Sons, Inc.
Faulker, D.O. and Campbell, A. (2003) The Oxford Handbook of Strategy: Volume I: A
Strategy Overview And Competitive Strategy. New York: Oxford University Press.
Faulker, D.O. and Campbell, A. (2003) The Oxford Handbook of Strategy: volume II:
Corporate Strategy. New York: Oxford University Press.
Feurer, R. and Chaharbaghi, K. (1995) Strategy development: past, present and future.
Management Decision, Vol. 33 No. 6, p. 11-21.
Geroski, P. (1998) Thinking Creatively about Your Market: Crisps, Perfume and Business
Strategy. Business Strategy Review, Vol. 9 Issue 2, p. 1-10.
Ghemawat, P. (2001) Distance Still Matters: The Hard Reality of Global Expansion. Harvard
Business Review, September, p. 137-147.
Ghemawat, P. and Friedman, G. (1999) Wal-Mart in 1999. Case 9-799-118, Harvard
Business School Publishing, Boston, MA.
Ghemawat, P. and Ghadar, F. (2000) The Dubious Logic of Global Megamergers. Harvard
Business Review, July – August, p. 65-72.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 75 -
Gurdjian, P. et. al. (2000) Bagging Europe’s groceries. The McKinsey Quarterly, No. 2, p.68-
75.
Henderson, T.A. and Mihas, E.A. (2000) Building retail brands. The McKinsey Quarterly,
No. 3, p. 110-117.
Incandela, D., McLaughlin, K.L. and Shi, C.S. (1999) Retailers to the world. The McKinsey
Quarterly, No. 3, p. 84-97.
Kaplan, R.S. and Norton, D.P. (2000) Having Trouble with Your Strategy? Then Map It.
Harvard Business Review, September – October, p. 167-176.
Kogut, B. (1999) What Makes a Company Global?. Harvard Business Review, January –
February, p. 165-170.
Kumar, N. (1997) The Revolution in Retailing: from Market Driven to Market Driving. Long
Range Planning, Vol. 30 No. 6, p. 830-835.
Lusch. R.F. and Vargo, S.L. (1998) Multiplex retailers versus wholesalers: A test of the total
value of purchasing model. International Journal of Physical Distribution & Logistics
Management, Vol. 28 No. 8, p. 581-598.
Maruca, R.F. (1999) Retailing: Confronting The Challenges That Face Bricks – And – Mortar
Stores. Harvard Business Review, July – August, p. 159-168.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 76 -
Mathe, H. and Dagi, T.F. (1996) Harnessing Technology in Global Service Businesses. Long
Range Planning, Vol. 29 No. 4, p. 449-461.
McGahan, A.M. (2000) How Industries Evolve. Business Strategy Review, Vol. 11 Issue. 3,
p. 1-16.
Mintzberg, H., Quinn, J.B. and Ghoshal, S. (1999) The Strategy Process: Revised European
Edition. England: Pearson Education Limited.
Ortega, B. (1999) In Sam We Trust: The Untold Story of Sam Walton and how Wal-Mart is
Devouring The World. London: Kogan Page Limited.
Passemard, D. and Kleiner, B.H. (2000) Competitive Advantage in Global Industries.
Management Research News, Vol. 23 No. 7/8, p. 111-117.
Porter, M.E. (2001) Strategy and the Internet. Harvard Business Review, March, p. 63-78.
Prahalad, C.K. and Oosterveld, J.P. (1999) Transforming Internal Governance: The
Challenge for Multinationals. Sloan Management Review, Spring, p. 31-39.
Rucci, A.J., Kirn, S.P. and Quinn, R.T. (1998) The Employee – Customer – Profit Chain At
Sears. Harvard Business Review, January – February, p. 82-97.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 77 -
Rugman, A.M. (2002) International Business: Critical Perspectives on Business and
Management Volume I. London: Routledge.
Rugman, A.M. (2002) International Business: Critical Perspectives on Business and
Management Volume III. London: Routledge.
Rugman, A.M. and Hodgetts, R.M. (2003) International Business. Third Edition. England:
Pearson Education Limited.
Schneider, S.C. and Barsoux, J.L. (2003) Managing Across Cultures. Second Edition.
England: Pearson Education Limited.
Useem, J. (2003) One Nation Under Wal-Mart. The Fortune, March, p. 41-48.
Yoffie, D.B. and Kwak, M. (2002) Judo Strategy: 10 Techniques for Beating a Stronger
Opponent. Business Strategy Review, Vol. 13 Issue. 1, p. 20-30.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 78 -
31. Declaration
Wal-Mart in this report represents Wal-Mart Stores, Inc.
The word count does not include Tables, Figures, Graphs, Appendices, Headers, Images, and
anything discussed in brackets. The Executive Summary, Limitations of Report, References,
Bibliography and the Declaration do not constitute part of the word limit.
The word count in the main text excluding the aforementioned points is 5117 words.
Report style has been adopted for presentation as per guideline and attempt has been made to
maintain the different parts and tasks as distinctive as possible but yet linking key elements
together to avoid repetition and to communicate the significance.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 79 -
Attribution-NoDerivs-NonCommercial 1.0
You are free:
• to copy, distribute, display, and perform the work
Under the following conditions:
Attribution. You must give the original author credit.
Noncommercial. You may not use this work for commercial purposes.
No Derivative Works. You may not alter, transform, or build upon this work.
• For any reuse or distribution, you must make clear to others the license terms of this
work.
• Any of these conditions can be waived if you get permission from the author.
Your fair use and other rights are in no way affected by the above.
This is a human-readable summary of the Legal Code (the full license).
This work is licensed under the Creative Commons Attribution-NoDerivs-NonCommercial License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nd-nc/1.0/ or send a letter to Creative Commons, 559 Nathan Abbott Way, Stanford, California 94305, USA.
Analysis and Evaluation of Wal-Mart’s Global / Transnational Strategy
Global And Transnational Strategy – SM 448 – Assignment May 2003 Vijay Kodandaraman Bysani - 80 -
Vijay Kodandaraman Bysani
Ph (India): 0091-44-24996780 0091-44-24996781 0091-44-24995805 Fax (India): 0091-44-24981781 Mobile (UK):0044-7931-926-136 E-Mail: [email protected] URL: http://vijay.blogs.com
Recommended