Академический Документы
Профессиональный Документы
Культура Документы
MAJOR PLAYERS
Pantaloon Retail/Future Group K Raheja Group Tata Group RPG Group Landmark Group Parimal Group Reliance AV Birla Group
Globalizations lure is almost irresistible. With US economy struggling to expand and Europe on brink of recession, fast growing markets in the developing world offer the best opportunities for boosting revenues and profits When we focus on Grocery Retail Industry there are few exceptions, globalization benefits had not accrued to retailers. International players are almost entirely absent from even the largest retail markets. And every grocery retailer that has ventured overseas has failed as often as it has succeeded.
WALMART
American multinational retailer corporation Large discount department stores and warehouse stores World's third largest public corporation (Fortune Global 500, 2012) Largest retailer in the United States, and in the world 8,500 stores in 15 countries, under 55 different names (UK - Asda, Japan - Seiyu, India - Best Price, WOS in Argentina, Brazil, Canada)
Mixed results in investments outside North America: UK, South America, China are successful Germany, South Korea, Japan were unsuccessful
Japanese tends to prefer quality over low prices, which constrasts with Walmart core value: EDLP (Every Day Low Price). When a nation has a very strong purchasing power, such as Japan, why settle for cheap stuffs when you can buy high quality expensive products and still have money to spare?
Japan is a small country with limited spaces, which has several implications for Walmart as below: Small housings and apartment sizes, with high rent prices means that Japanese would need to minimize their purchases. Several small purchases. High operating costs, especially because of the prices of rent and buildings in general. Inability to apply original supply chain model
Manufacturers
Wholesalers
Retailers
Customers
Line of governance
Retailers are often protected from financial risks by wholesalers and manufacturers through a number of distinctive market practices (such as rebates). Price and distribution control Manufacturers and wholesalers controlled prices by enforcing districting and exclusive dealerships. Closed-network impact to government For foreign retailers, Japans complex retail and distribution system has long been inaccessible, so much so that the U.S. government considered it a nontariff barrier and a structural impediment for U.S.-Japan trade
Contrasting Collectivism of supply chain and relation to customer is difficult for US.
Contrasting Japan strives for quality and perfection. While Walmart enters market with valuegoods approach
Contrasting Japan may have numerous restriction and laws which may be viewed as unnecessary by US.
Contrasting Japan may plan ahead and more punctual and strict, contrast to US.
91
95
62
92
80
54 40
46
46 29
Japan
United States
PDI
IDV
MAS
UAI
LTO
High communitarianism: high peer pressure, need peer approval to make decisions. High uncertainty avoidance: tried and true is better, something new is to be avoided. Variety offered by Walmart is not attractive to Japanese, who tends to choose a small selection of tried and tested product. Not to mention, they are wary of the new products offered by Walmart.
Wal-Mart entered the German market at the end of 1997 with the purchase of 21 stores from Wertkauf and added to this in 1998 with the purchase of 74 Interspar stores from the French company, Intermarch. After only 4 years of operation in Germany it was clear that WalMart was struggling with estimated accumulated losses at around 1 billion Euro, although only estimates were available as the company published no accounts.
REASONS
The nature of the German market
The acquisitions The senior managers
Corporate culture
Supply chain issues products
Employee relations issues Pricing issues
By 2006, Wal-Mart had 85 stores remaining in Germany. In July that year these were sold to a rival company Metro. In typical fashion no financial details were disclosed but the deal is estimated to have been concluded at less than the value of the assets at a loss to Wal-Mart of US$ 1 billion. Just after the conclusion of the deal in Germany, Wal-Mart sold all its stores in South Korea and by 2007 operates in only 13 countries. Its international rival Carrefour operates in 29 countries. Historically Wal-Mart has always done best in markets closest to the USA, namely Mexico and Canada. Asda in the UK is a rare success contributing 43% of Wal-Marts international revenue. The failure in Germany is summed up by two academics thus: WalMarts attempts to apply the companys proven US success formula in an unmodified manner to the German market.
CAREFFOUR
CAREFFOUR
Carrefour is a French multinational retailer headquartered in Boulogne Billancourt, France, in Greater Paris. It is one of the largest hypermarket chains in the world. The second largest retail group in the world in terms of revenue (after Wal-Mart) The third in profit (after Wal-Mart and Tesco). Carrefour operates mainly in Europe, Argentina, Brazil, China, Dominican Republic, United Arab Emirates, Qatar and Saudi Arabia etc
Carrefour is closing up shop in much of South-East Asia. Its 44 stores in Thailand, 23 in Malaysia and two in Singapore are for sale.(2010) Carrefour was one of the first foreign grocers to open shops in South-East Asia in the 1990s. But the laterarriving Tesco proved cannier in figuring out what consumers wanted. When the firm found out that Thai shoppers travelled for miles by bus to its big-box stores, it opened smaller stores in rural towns. Carrefour focused on Bangkok's higher spenders and stuck to its hypermarket format.
On April 28, 2006, Carrefour, the second largest retailer in the world, sold its 32 hypermarkets in South Korea to E.Land Corporation for 1.75 trillion Won The sale marked the exit of Carrefour from the South Korean organized retail market. Then agreed to 1.48 trillion in september. As a part of the plan, Carrefour exited several markets including Japan, Mexico, Czech Republic and Slovakia and began concentrating on the markets where it had a strong position including Brazil, Poland, Turkey and China.
System
Due to Carrefours extreme level of store decentralization support areas that were not directly under store responsibility, such as IT and logistics, were normally treated as vendors. Over time this led to under investment and the companys support services generally lagged behind the market leaders in terms of efficiency
Culture
Didn't Understand the culture of South Korea and applied global strategies
Ethics
Negative attitudes toward foreign discount chain stores. Carrefour has been criticized for the treatment of its workers throughout the world
Leadership
Carrefour filed a court case against the local union, demanding damages for alleged losses caused by trade union members coming to work in their union jackets.
On the departure of Carrefour (and the subsequent departure of Wal-Mart) from Korea, the South Korean media reported that 'Native Korean retailers won a battle with the world's retail Goliaths.'
TESCO
Tesco is the world's third largest retailer with a turnover of 72 billion ($115 billion), a presence in 12 countries with a market leader position in 6 of them. With over half a million employees, 6600 stores, and a strong online business, Tesco is dedicated to bringing best value, choice and service to millions of customers each week. What drives us is our Core Purpose, which is: WE MAKE WHAT MATTERS BETTER, TOGETHER.
GLOBAL PRESENCE
UK China India Malaysia South Korea Thailand Czech Republic Hungary Ireland Poland Slovakia Turkey
FAILURE IN USA
The stores had only self-checkouts. European model. Treat the US as one country Unfortunate timing- Recession Failure to understand that the US retail landscape is different from the UK's
Metro is a German global diversified retail and wholesale/cash and carry group based in Dsseldorf. It has the largest market share in its home market, and is one of the most globalized retail and wholesale corporations. It is the fifth-largest retailer in the world measured by revenues (after Wal-Mart, Carrefour, Tesco and Kroger)
GLOBAL PRESENCE
Austria Belgium Bulgaria China Croatia Czech Rep. Denmark Egypt France Germany Greece Hungary India Italy Japan Kazakhstan
Luxembourg Moldova Netherlands Pakistan Poland Portugal Romania Russia Serbia Slovakia Spain Sweden Switzerland Turkey Ukraine Vietnam
KROGER
The Kroger Co. is one of the world's largest grocery retailers, with fiscal 2012 sales of $96.8 billion. Krogers Family of Stores spans many states with store formats that include grocery and multi-department stores, discount, convenience stores and jewelry stores. They operate under nearly two dozen banners, all of which share the same belief in building strong local ties and brand loyalty with our customers.
Alabama Alaska Arizona Arkansas California Colorado Georgia Idaho Illinois Indiana
Kroger Fred Meyer Fry's, Smith's, Fry's Marketplace Kroger, Kroger Marketplace Ralphs, Food 4 Less, Foods Co. King Soopers, City Market, King Soopers Marketplace Kroger, Kroger Marketplace Fred Meyer, Smith's Kroger, Food 4 Less Kroger, Kroger Marketplace, Jay C, Ruler Foods, Pay Less, Owen's, Food 4 Less, Scott's Dillons, Dillons Marketplace Kroger, Kroger Marketplace Kroger Kroger Kroger Kroger, Dillons, Gerbes Smith's Baker's, Food 4 Less Smith's, Food 4 Less Smith's, City Market, Price Rite Kroger Kroger, Kroger Marketplace Fred Meyer, QFC Kroger Kroger, Kroger Marketplace Kroger, Kroger Marketplace Smith's, Smith's Marketplace, City Market Kroger QFC, Fred Meyer Kroger Smith's, King Soopers, City Market
Kansas Kentucky Louisiana Michigan Mississippi Missouri Montana Nebraska Nevada New Mexico North Carolina Ohio Oregon South Carolina Tennessee Texas Utah Virginia Washington West Virginia Wyoming