CC BY
14
UDC 339
ANALYSIS OF WALMART'S INTERNATIONAL MARKETING STRATEGY
Li Shanshan Scientific supervisor - Yu. A. Anikina
Reshetnev Siberian State University of Science and Technology 31, Krasnoyarskii rabochii prospekt, Krasnoyarsk, 660037, Russian Federation E-mail: 1553169202@qq.com
Walmart is a worldwide chain enterprise in the United States. It has developed from an ordinary retail store to the world's top three retail leaders in decades of development. Its development model plays a very important role in guiding the rapid development of global retail industry.
Keywords: Walmart, development, international marketing strategy.
АНАЛИЗ МЕЖДУНАРОДНОЙ МАРКЕТИНГОВОЙ СТРАТЕГИИ WALMART
Ли Шаньшань Научный руководитель - Ю. А. Аникина
Сибирский государственный университет науки и технологий имени академика М. Ф. Решетнева Российская Федерация, 660037, г. Красноярск, просп. им. газ. «Красноярский рабочий», 31
E-mail: 1553169202@qq.com
Walmart является мировым сетевым предприятием в Соединенных Штатах. За десятилетия развития она превратилась из обычного розничного магазина в тройку лидеров в мире по розничной торговле. Модель его развития играет важную роль в развитии мировой розничной торговли.
Ключевые слова: Walmart, разработка, международная маркетинговая стратегия.
In today's world many large retail enterprises, Walmart's sales have been the first, is the leader of the retail industry. Walmart for more than a decade, while its relatively conservative operating style makes it have not got any similar to the United States are growing, but because of its strong financial support, the modernization of technical support, the accumulation of years of experience in international marketing, Walmart in the retail market quickly, grab the domestic retail market share has a certain trend. This paper gives a general overview of Walmart's development in the international market, focuses on Walmart's business strategy in the international market, analyzes Walmart's marketing strategy in the international market, and finally provides some beneficial experience for the development and internationalization of retail enterprises. Through the analysis of Walmart's international development process, the author finds out its existing problems and puts forward some opinions, which also reflects the enlightenment of Walmart to the development of international retail industry.
Актуальные проблемы авиации и космонавтики - 2020. Том 3
Walmart has some of the best suppliers in the world and gets better prices through its big purchases. Walmart's purchase demand is very large, which increases the production of suppliers, so its suppliers have certain strength. This first made the supply of goods has a great security, but also brought a lot of preferential prices to Walmart itself. We have the best suppliers in the world, and we can get a better price through our large-scale purchase. Humanized management, corporate culture, human resource management, the staff as partners. Walmart always credits the success of his career to the people in the company and considers the employees as the most important factor in the company's success. He advocates team spirit and encourages communication between employees, leaders and employees. It also has a strong logistics system, economies of scale, always low prices, product diversification and a strong logistics system. Walmart has the largest private satellite communications system in the United States and the largest private transportation fleet, which is an unmatched advantage of its supply system. Walmart has always insisted on having its own fleet of cars and its own drivers to maintain the best service for its first-line stores [1].
Walmart is one of the world's best companies, yet it has a poor track record of making money internationally. For a decade, Walmart's sales in some countries were only about $1 billion. Some believe that Walmart is lagging behind in the international market because it did not make the top 30 Chinese chains in 2005. Walmart's international woes today stem from poor strategic thinking and an over-reliance on traditional Walmart marketing concepts. The first disadvantage is that the international does not form a business scale before the use of high-tech and high-investment logistics center, affecting its cost cutting. Human resources are cheap, and China's underdeveloped infrastructure hinders the efficient use of high technology. The second is that different national conditions mean Walmart needs to change more. The population distribution of purchasing power is very different from that of the United States, and its site selection guidelines do not apply. Purchase of fresh products in greater proportion, variety requirements more. Walmart, on the other hand, pays more attention to control and cannot respond quickly. Sticking to its own business processes harms the interests of local governments and reduces their support. The last one is that the price advantage of overseas purchase is difficult to reflect [2]. The relatively cheap labor force in the world makes the market price in some countries lower, while the increase of Walmart's overseas procurement cost has a positive impact on the price of international products, resulting in a significant increase in the resistance of Walmart to implement the strategy of «low price every day». The following four aspects are Walmart's main international operation strategies.
Firstly, through the analysis of Walmart's chain operation, managers can confirm that the strategic division that the organization should develop is the intersection of the resources and capabilities of the organization and the environmental opportunities, namely, the opportunity of the organization, namely, the strategic construction space. Low cost operation mode, brand value, corporate culture and other aspects are Walmart's main advantages. At present, the development of international retail industry is supported by various national policies, especially in the development of rural market. The whole retail industry is in the transition period of competitive restructuring, which is a rare opportunity for Walmart, an international famous brand. Therefore, its overall development strategy is a growth strategy, and can be achieved through direct expansion, vertical integration, horizontal integration and diversification.
Secondly, Walmart's talent strategy: talent is wealth, which is particularly prominent in Walmart. Walmart is also a brand new management concept in terms of talent management. There is an "inverted pyramid" organizational relationship between leaders and employees. Leaders are at the bottom of the whole bracket, employees are the cornerstone in the middle, and customers are always the first.
Thirdly, Walmart's low-cost competitive strategy, in theory, «once managers assess the five forces and identify the existing threats and opportunities, the next step is to choose the appropriate competitive strategy». Porter further points out that competitive advantage comes from either having lower costs than competitors or being significantly different from competitors. Managers can choose cost leadership strategy, differentiation strategy and focus strategy. Which strategy to choose depends on the strengths and core competencies of the organization and the weaknesses of its competitors. In the study of corporate business strategy theory, the three main entity roles in the conception of competitive strategy, Corporation, customer and Competitor, are collectively referred to as the «strategic triangle».
Walmart has almost all of the overall cost leadership skills, resources, and organizational requirements. Examples are low-cost distribution systems, tight control of labor costs, process reengineering skills, and ongoing capital investment and financing capabilities. Organizational requirements: strict cost control, detailed control reports, functional organization and responsibilities, rewards based on strict quantitative goals [3]. When it comes to the strategic triangle above, there doesn't seem to be a problem. However, when defining and analyzing the overall cost leadership, this competition model does not analyze the target customers much, but only mentions that the products and services sold are not inferior to competitors in quality and at least can be accepted by consumers. In fact, any cost should not only consider the competitors, but also the customers' understanding and cognition of cost. Especially for the cultural environment of China, the cost leadership strategy adopted by Walmart needs to be reconstructed. Without theoretical innovation, there is no breakthrough in practice, not old is difficult to establish new.
Lastly, Walmart model of low cost competition strategy, enterprises should not only consider competitors in strategic overall frame and the target customers, but also in the strategy implementation, especially in the selection and implementation of cost leadership strategy, careful analysis of the specific conditions of the target customers, pay attention to the research target customers accept ability and cognitive level of product cost [4]. That is to change «overall cost leadership strategy» to «relative cost leadership strategy». The relative meaning not only includes the consideration of competitors and target customers, but also makes the choice of «relative cost» strategy more dynamic, targeted, operational and effective.
In general, the marketing strategy of any enterprise is carried out under the guidance of its business philosophy. It is necessary to establish the concept of competition, have the pressure of survival and sense of urgency, and participate in the competition with a more positive attitude. It is extremely important to cultivate their own core competitiveness and competitive advantage, the use of appropriate competitive strategy and operation strategy, in the future competition to seek full development.
References
1. Chen, Fuliang. Online Walmart. Marketing. Strategic case. P. 84-87.
2. Chen, Meilin. Research on Walmart's global strategic procurement. Lanzhou university, 2012. P. 343-345.
3. Cheng, Shaoshan. There are only four modes of marketing. Sino-foreign management, 2006. P. 78-80.
4. Zhao Fanyu. Retail Giant Walmart. 2003. P. 3-4.
© Li Shanshan, 2020
