Walmart

Wal-mart case is genuinely a classic case of cross-cultural and globalization. A company with such a strong norms of business model and culture embedded within, with the success level of 285 billion net sale, it is normal for them to be confidence of what they are doing, yet they neglect the fact that same things might operate differently in different part of the world. Let us first explore the superior model that Walmart uses to dominated and revolutionized American retail store, and then we will explore some nature differences of Chinese retail business.

“Every Day Low Price” was the main advertisement for Wal-mart; they offer discount brand name products for their customers. They started off with a store in Arkansas, this was considered as a perfect location for them. The communities itself filled with American middle class with household consist of small to mid size family, where they go retail shopping once or twice a week in a SUV or family size car. They are able to fit bulk retail shopping within their trips. Addition benefits to small town location Wal-mart had target on were lower cost of the site. Lower cost of capital allows them to maintain their low price to their product. Growth was another benefit to small town location; they were allowed to grow without intimidating other retail store competitors. Other components of their business model allowed them to minimize the cost of their product such as create low cost value to their employees, where top managers still fly economy class and share budget hotel rooms. Maintaining strong relationship with their supplier to leverage their products was another tactic they have. Lastly they have perfected their logistic system, not only by high level of efficiency but also advance technology. By adopting satellite technology the company was able to connect all stores to the home office at the same time and tie everything together. Wal-mart also did not waste much money on inventories; they have layout their...