Wumart Group 8b
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Wumart has achieved competitive advantages in China through its strong brand image, reliable quality products at low prices, and political connections that allowed it to open stores in convenient locations. However, these advantages will be difficult to transfer abroad where foreign companies face less competition. While Wumart's local bargaining power, market knowledge, and brand may not translate internationally, they could be leveraged in other retail sectors and formats within China or through online sales. To sustain its performance, Wumart will need to use the founder's political ties to expand through joint ventures outside its home market while thinking locally, and grow in other sectors that leverage its existing logistics and resources.
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Wu Mart's main sources of competitive advantage in China include its large store network, knowledge of the local Chinese market, strong brand recognition in northern China, and close relationships with the Chinese government and local suppliers. These resources allow Wu Mart to procure products effectively, tailor its offerings to local customers, and expand rapidly through acquisitions. However, many of these advantages are not easily transferable to new international markets and may not be sustainable long-term as China's economy develops and foreign competitors establish a stronger presence. To protect its position, Wu Mart will need to continuously monitor competitors, diversify its offerings, and acquire new resources over time.
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Wumart is a large Chinese retailer that has achieved competitive advantages through its resources and capabilities. It has built strong supply networks and relationships with the Chinese government that are difficult for competitors to imitate. However, there is uncertainty around how sustainable some of its advantages will be as it expands internationally. Mature international retailers have already occupied many foreign markets, and local retailers have strong positions in their home countries, posing challenges for Wumart's international growth.
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Wumart Stores is China's largest retailer and response to Western giant Walmart entering the Chinese market. The document discusses Wumart's sources of competitive advantage including tangible assets and intangible capabilities. It examines the sustainability of Wumart's competitive advantage domestically and potential to transfer it internationally. It provides recommendations for Wumart such as building a strong domestic presence, exploring joint ventures, continuing government relations, and long-term international expansion planning.
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Wumart was founded in 1994 in Beijing as China's first large supermarket chain, offering low prices and good value. By 2005, Wumart had 503 stores and $2.4 billion in annual sales. Wumart's competitive advantages included an in-depth understanding of Chinese customers, early investment in IT, a culture of cooperation and innovation, and strong relationships with the government and state-owned companies. While Wumart was well-established in China, expanding abroad faced significant challenges due to lack of brand recognition overseas and different consumer preferences in foreign markets.
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This document discusses global branding strategies. It notes that while standardization has benefits, there are also local obstacles to consider. Successful global brands develop strategies incrementally and sometimes sacrifice long-established local brands. A strong global brand strategy clearly defines the brand's values and character to ensure consistent communication, while allowing local adaptation. Global brands benefit from reduced marketing costs but must consider each market's unique culture and conditions to build brands with strong, differentiated value propositions.
Assignment-Chapter 12
The document discusses international business strategies used by various companies. It explains that Procter & Gamble follows a transnational strategy with centralized R&D and localized production and marketing. Vodafone initially pursued a global strategy by standardizing its phone technology worldwide but failed to adapt to local Japanese preferences. Walmart had to expand internationally to continue growing after saturating the US market, and benefited from economies of scale and cross-border knowledge sharing, though it struggled at first to replicate its distribution system in Mexico and had to localize product offerings and partnerships.
MARKETING
This document provides an overview of key concepts in international marketing and R&D. It discusses definitions of international marketing, factors influencing marketing strategy choices, elements of the marketing mix and how they differ globally. It also addresses issues in global communication, pricing, distribution, market segmentation, product development and maintaining integrated global R&D capabilities. The document emphasizes that while full standardization is often not possible, firms can standardized some marketing mix elements and customize others based on local market needs.
Globalisation ppt 2
The document discusses various aspects of globalization including:
1) Globalization refers to the increasing integration and interaction between countries through international trade, flow of capital and technology.
2) Key drivers of globalization include multinational corporations, the WTO, World Bank and IMF.
3) Firms operate globally to access new markets, raw materials, labor and gain economies of scale. However, globalization benefits are not evenly distributed.
12 Global Brands & Local Markets
Global brands face challenges in expanding to new markets that have different cultures. While products that succeeded in Western markets in the past could sometimes be easily adapted to other countries, today's globalism requires understanding local differences. Companies must ensure their offerings are culturally appropriate for target markets. Both product-focused and culture-focused research are needed to understand consumers, but each has advantages and limitations. Successful companies coordinate globally while allowing local responsiveness in areas like product delivery and marketing.
Retailing 2015: New Frontiers 2007 PricewaterhouseCoopers
The document discusses retail trends expected between now and 2015. It predicts that demographic differences will widen, with growth primarily among older generations and younger generations under 35. Retailers will have difficulty appealing to both groups. The US population will also become more racially diverse. There will be more single-person and smaller households as families decrease in size. Technology will be more prevalent and change how customers obtain and share information. Retailers must adapt to these shifting trends to succeed in 2015.
Retailing2015
The document discusses retail trends anticipated between now and 2015. It predicts that demographic shifts will create dichotomies that will be challenging for retailers to bridge. Specifically, it anticipates greater differences between older and younger consumers, as well as between mainstream and multi-cultural populations. It also expects households to trend smaller, with more single-person and two-person homes. Retailers will need to tailor their offerings more to specific customer segments rather than aiming for mass appeal. Technology and data sharing are projected to become more prevalent and transform the retail experience and landscape.
2015-global-omnichannel-retail-index
This document discusses the rise of omnichannel retailing globally. It presents the Strategy& Global Omnichannel Retail Index, which ranks 19 countries/regions on their omnichannel readiness across 9 retail segments. The US, UK, and Australia rank as the top 3 omnichannel countries. China ranks 5th overall and leads in apparel/footwear and grocery omnichannel. Many European countries lag in adopting omnichannel strategies. The index provides insights for retailers on omnichannel opportunities and maturity in different markets.
Short notes on international marketing
The document discusses the process of international marketing research in 6 steps:
1) Define the research objective and problem to be solved
2) Determine the appropriate research design and method such as surveys, interviews, or experiments
3) Design the specific research instrument such as a survey questionnaire
4) Implement the research by collecting data
5) Analyze the collected data through methods like summaries or regression analysis
6) Present the findings in a report to inform business decisions
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Wumart Group 8b
- 1. Wumart Group 8b Carl Waldenor Charlie Florman Lindeberg Karin Rimbäck Johanna Sjöblom
- 2. Wumarts resources Brand Image Reliability, quality and a value for money - Hard for foreign companies to compete with Political contacts Made it possible to open many stores in convenient location Strong corporate culture a sense of responsibility and co-operation, innovation and learning, and great attention to details Early commitment to technology Has helped the management and also the communication suppliers Wumarts capabilities Strong bargaining power with local suppliers Leads to low prices Good logistics management Has helped them to become fast-growing Understanding of the local consumers They focus on satisfying local needs. I.e. the US $10 transaction
- 3. The competitively superior resources Brand Image Reliability, quality and a value for money - Hard for foreign companies to compete with Political contacts Made it possible to open many stores in convenient location Strong corporate culture a sense of responsibility and co-operation, innovation and learning, and great attention to details Early commitment to technology Has helped the management and also the communication suppliers Wumarts capabilities Strong bargaining power with local suppliers Leads to low prices Good logistics management Has helped them to become fast-growing Understanding of the local consumers They focus on satisfying local needs. I.e. the US $10 transaction