Differences in economic and social system through walmarts failure in germany

Differences in economic and social system Through walmart’s failure in germanY Overview of Walmart CON Analyze the differences between the German and US market TEN TS Evaluation of Walmart's performance in the German market Lessons and recommendations Part - Overview of Walmart Part - Analyze the differences between the German and US market Part - Evaluation of Walmart's performance in the German market Part - Lessons and recommendations 1.1 History of Walmart Wal-Mart Stores, Inc > 11,500 locations across 28 nations main offi ce is in Bentonville, Arkansas a family-run enterprise 1962 - Sam Walton established launched in Mexico, Canada, 1992 - Walton passed 1993 - recovered after the Walmart in Rogers, Arkansas China, Germany, and the UK away - a drop in sales launch of the Great Value 1.2 Walmart and golden milestones Top spot: • Eff ectiveness • Solid supply chain management • Great logistics The largest company By revenue on the Fortune Global 500 list 1983 1992 Walmart's fi rst Supercenter is Walmart begins to enter foreign located in Washington DC markets in Puerto Rico 1983 Sam'club fi rst opened in April in the Midwest, Oklahoma 1990 1993 Walmart becomes the #1 Walmart International Division retailer in the US is established with Bobby Martin as president 1996 1998 Walmart enters t he Chinese Walmart entered the potential Korean market through a joint venture market, stepping up in the potential compromise Asian market 1997 2006 Walmart becomes the company The company begins to attack with the largest number of the Central American retail employees in the US market 1.3 STRENGTHS of Walmart Low and Reasonable Prices Walmart's products' prices that are far cheaper than those of other retail establishments Neighboring businesses Walmart has grown that it is comparable to a tourist destination Employment opportunities Helping the country's economy advance & provides jobs Diverse Business Models Walmart is now present in numerous other nations, each with a unique business model Variety of Products There is nothing that one cannot fi nd at Walmart Part - Overview of Walmart Part - Analyze the differences between the German and US market Part - Evaluation of Walmart's performance in the German market Part - Lessons and recommendations 2.1 Differences in economic aspect The characteristics of the The consumers German and the USA • market • • 1.1 Distribution system 1.2 Price competition and taxation 2.1 Shopping habits in the US vs Germany market • 2.2 Diff erences in social aspect Shopping habits in the US vs Germany market Germany tries to strike a compromise between business and social priorities ⇒ Germans don't care much about the price The Govt invests more in military science (500B $), people are left to figure out their own lives From the article “German consumers willing to pay more for quality produce” - 58% were prepared to spend more Shopping habits in the US vs Germany market Most Americans Prefer to Buy Cheap Rather than AmericanMade Goods 67% 23% 67% pay 50$ 23% pay 85$ for pair of pants for pair of pants 1076 adults voted: 2.2 Differences in social aspect Germany Having staff the bagging Smiling culture Group chanting before their shifts Dating with colleagues Protecting workers’ rights USA Part - Overview of Walmart Part - Analyze the differences between the German and US market Part - Evaluation of Walmart's performance in the German market Part - Lessons and recommendations Only 3% of the market was made up of the two chains 3% Walmart entered the German market in 1997: Wertkauf Interspar 377 branches 74 stores 24/377 ≈ 14,000 employees Germany - Europe's largest economy, made up over 15% of Europe's yearly retail market in 2001 During this time, Wal-Mart had to contend with fi erce rivalry from established local rivalry retailers like the Metro group and Rewe group After trying to enter the German market for almost ten years, fail Walmart kept failing Leave leave in 2006 - firing >11,000 staff members and selling off -chain stores at a loss of more than 1B $ Part - Overview of Walmart Part - Analyze the differences between the German and US market Part - Evaluation of Walmart's performance in the German market Part - Lessons and recommendations Gives many valuable lessons: • The first lesson “Quality” and “advantage” are defi ned diff erently in diff erent markets • The second lesson avoid compromising an employee's workplace culture Find the target market, willing to change business strategy to adapt to the market, which “Quality” and “advantage” are Having non-Germans as may not fit their defi ned diff erently in diff erent managers markets advantages The first lesson: research and approach the market carefully and reasonably The second lesson: avoid compromising an employee's workplace culture Recommendations: • Employment of Cross-Cultural Management approaches • Political, Social, Economic and Cultural Analysis of the Country • Updating strategies constantly to successfully fend off local competitors • Go worldwide while acting locally  Employment of Cross-Cultural Management approaches Hofstede's Culture Dimensions Degree of communitarianism in Germany • Germans prefer taking part in team activity • People in America their organization as a collection of activities, jobs, personnel, tools, and Business is an association of related people working together compensation for which people compete Have a thorough understanding of the Germany was chosen in Walmart's case Political, Social, Economic, and Cultural revealed that Germany has strong, aspects adaptable national values  Political, Social, Economic and Cultural Analysis of the Country Updating strategies constantly to successfully fend off local competitors Constantly assess how its varied initiatives are aff ecting the local market Recognize the weaknesses and change them Go worldwide while acting locally • Deeply understand the culture of the country, even changing their identity to suit the new market • Walmart has made non-German store managers in Germany itself So if you hire a local manager, he will understand more about his country's culture From there, there will be a huge diff erence in understanding the market DO YOU HAVE ANY QUESTIONS? YES NO Thank you for listening! ... and the USA • market • • 1.1 Distribution system 1.2 Price competition and taxation 2.1 Shopping habits in the US vs Germany market • 2.2 Diff erences in social aspect Distribution system • Germany' s... pants 1076 adults voted: 2.2 Differences in social aspect Germany Having staff the bagging Smiling culture Group chanting before their shifts Dating with colleagues Protecting workers’ rights USA... government characterized by minimal interference from the government Shopping habits in the US vs Germany market Germany tries to strike a compromise between business and social priorities ⇒ Germans