Why did wal-mart fail?

Analysis of Three Reasons for Wal-Mart's Failure in China;

1, logistics system, it is difficult to reduce costs.

It turns out that the highly automated logistics system, under the synergistic effect of efficient information systems, has produced the effect of minimizing product inventory and transportation time and effectively reducing operating costs. It only takes two days for its distribution center to receive orders from stores to purchase and deliver them to manufacturers. Among them, expressway and Wal-Mart, which extend in all directions in the United States, have more than 3,000 stores in the United States and well-laid escort centers play a key role in this system. However, Wal-Mart (China) has encountered a bottleneck here. For expressway, the development level of China is still very low, and it will reach the level of 890,000 kilometers in the United States by 2035, which greatly reduces the escort chain of Wal-Mart. As for the escort centers, Wal-Mart only has two escort centers in Shenzhen and Tianjin, so it is impossible to build stores around one escort center in China. So far, Wal-Mart has set up more than 50 branches in China, which has not reduced the cost, but increased the logistics expenditure.

2, information system, it is difficult to show advantages.

Wal-Mart's leading and efficient information system is highly respected by the industry. With its own commercial satellite, Wal-Mart has conveniently realized the global networking of information systems. Through this network, more than 4,000 stores around the world can check the inventory, shelves and sales of each commodity within one hour. The close connection between internal and external information systems enables Wal-Mart to exchange daily sales, transportation and ordering information with suppliers, thus keeping the sales, ordering and matching of stores in sync. In addition, from 1980, Wal-Mart began to force suppliers to connect with their information systems, which is also an important factor for Wal-Mart systems to play a role in the United States. However, at this stage, the business environment in China hinders the development of this advantage of Wal-Mart. Most domestic suppliers have a low level of informatization and can only exchange data with Wal-Mart. At the same time, due to policy restrictions, Wal-Mart's satellite communication system can't play a role in China, and the effective enjoyment of its global procurement system and global logistics system in the China market is greatly reduced. Each link of the back-office logistics system can't cooperate closely as in foreign countries and can't play its due efficiency. It is difficult to realize cross-regional chain escort, which greatly affects the implementation of Wal-Mart's floor price policy in China. In the United States, Wal-Mart's attitude towards suppliers is not only to ask suppliers to rank among similar products, but also to declare that "if there is no EDI (data exchange interface), don't come to me". In China, Wal-Mart faces a different situation. Wal-Mart implements the principle of purchasing goods directly from manufacturers all over the world to reduce costs. But this is difficult to achieve in China. On the one hand, the large number, small scale and wide distribution of manufacturers in China make it difficult for Wal-Mart to deal with manufacturers independently.

3. Localization, which is often ignored.

Wal-Mart once fantasized about replicating the consistent business model and cultural concept adopted by every branch in the world in China, but it failed repeatedly. The problem here is that the system can be re-established, but the culture cannot be simply copied. Because the construction of corporate culture is not written in a manual, shouting slogans, and meeting education can be realized. Corporate culture is the business philosophy, values and moral norms accumulated in the process of enterprise development, which permeates the thoughts of every employee in the enterprise. If you accept the concept of customer first, because the performance of Wal-Mart employees is really different. Therefore, the problem of corporate culture is the crux of many phenomena in Wal-Mart management. The current situation shows that Wal-Mart is not acclimatized in the process of localization. It can be said that if the logistics problem is only a serious injury of Wal-Mart, then China's corporate culture of "similarity but dissimilarity" is an internal injury of Wal-Mart.

Did Wal-Mart succeed or fail in China? Why? Welcome to talk.

China was not good at logistics, but his greatest competitiveness lies in logistics! The site selection is not suitable for China people's consumption culture. We have always been curious about how to increase consumption! We know that the current competitive situation is that whoever fills the gap in the market first can taste the sweetness and perhaps become the market leader. I think Carrefour's seizing the market has dealt a great blow to Wal-Mart. We know that China's consumption concept is to pay first and then get the goods, but Sam member stores also adopt the American model in China _ _ pay first and then provide services! This is very inconsistent with China's consumption concept! In public relations, we know that the United States spreads their culture through enterprises, and China and the United States often have conflicts in China diplomacy. In this regard, I want to increase the cost and make his public relations in China difficult! hey

Why did Wal-Mart fail?

Comprehensive carpet survey

Cultural factors of Wal-Mart's failure to enter Germany

Abstract: The failure of Wal-Mart in Germany is closely related to the failure of its market environment factor analysis, consumer factor analysis, market competition analysis and strategic management concept. This study has important implications for overseas expansion of international retailers such as Wal-Mart and cross-regional expansion of domestic market of local retailers in China.

First, the theoretical analysis framework of the failure of retail internationalization

(A) the understanding of the reasons for the failure of retail internationalization

The reason for the failure of internationalization may be the business activities of the main business or the external environment. Sometimes, bad international management is that enterprises try to increase their market share quickly through short-term losses caused by some form of strategic arrangement, thus ensuring long-term profits. But for the long-term failure of internationalization, retailers generally try to reduce losses by reducing investment or restructuring institutions. If it is still ineffective, retailers will completely withdraw from the country's market through asset sales, international store replacement and bankruptcy (Zhao Ping, 2006).

Many scholars have done some research on the specific reasons for the failure of retail internationalization. Benito and Welch (1997) believe that from an economic point of view, retailers' withdrawal from overseas markets is a rational response to the ever-changing external environment. When the environment and opportunities change, operators should respond quickly and decisively. In addition, the failure of retail internationalization is also closely related to the product life cycle, enterprise assets and management according to local conditions in different markets (Boddewyn, 1985). Wrigley and Currah (2003) have proved that the failure of international retailers in overseas markets may be affected by the financial situation of other target markets through the study of Ahold's withdrawal from Latin American markets. Benito (1997) has systematically summarized four groups of factors that lead to the failure of retail internationalization: first, environmental factors, including economic environment, competitive environment, social environment and political environment. These relatively stable and long-term factors directly affect the overall development of enterprises, including the macro-strategic deployment and management mechanism of enterprises, and the increase of environmental risks will undoubtedly lead to the failure of retail internationalization; The second is the operating conditions of enterprises, which can often be reflected from many financial statistics, including the operating conditions of enterprises, the degree and consistency of the short-term and long-term goals of enterprises in overseas markets, etc. These business factors often have an impact on various departments of enterprises, and to some extent affect the success or failure of retailers in overseas markets; Third, the strategic consistency between the parent company and overseas subsidiaries. In the long-term operation process, it is often difficult to maintain strategic consistency between the parent company and overseas subsidiaries, and strategic inconsistency will directly lead to the disconnection of enterprise management, which will lead to the failure of overseas subsidiaries' operation; Fourth, governance factors mainly refer to the special management methods and strategies adopted by the parent company in different overseas environments. If these business methods or strategies can't adapt to the target market well, internationalization failure will easily occur.

(B) Theoretical analysis framework

Based on the research of foreign scholars on the failure of retail internationalization, this paper designs a comprehensive theoretical framework to analyze the reasons for the failure of retail internationalization. First of all, the inaccurate analysis of environmental factors in the target market will lead to the failure of retailers in foreign markets (for example, the difference between supply and demand and expectations will directly lead to the failure of foreign subsidiaries's normal operation). If we can't grasp the healthy, stable and sustainable economic environment of the target country, the economic risk of the target country will directly lead to the failure of the macro strategy of multinational retailers. At the same time, incomplete analysis of the political environment of the target country (such as law and labor security system) will also lead to the failure of multinational enterprises. Secondly, excluding the influence of environmental factors, inaccurate analysis of consumers in the target market will also lead to the failure of retailers in foreign markets. Some international retailers can firmly attract domestic consumption by virtue of their unique sales methods or skills.

Who? However, in the target country, these methods that can successfully attract consumers in the country may not have any effect on consumers in the target country, which will lead to the failure of these international retailers. Third, the failure of competition in the target country will also lead to the abandonment of the target country by international retailers. International retailers can adapt well to the environment of target countries and are very popular with local consumers. But at the same time, fierce competition ... >>

Did Wal-Mart succeed or fail in China? Why? Welcome to talk.

At the beginning of the defeat, chaos, acclimatization, and fate were worrying.

Reasons for Kmart's failure

On the surface, the collapse of Kmart, the third largest retail chain in the United States, has many external unfavorable factors such as economic recession, weak consumption and horizontal competition. However, from a deeper perspective, it is not the peers like Wal-Mart that really beat Kmart, but Kmart itself. 1, scale is a double-edged sword. Facing the expansion of Kmart's scale, it failed to build a safe umbrella for it. Kmart, after a certain scale, can't wait to start transnational operations and diversified mergers and acquisitions. We began to try diversified business strategies, covering clothing, household goods, books and so on. Become more and more diverse. But how to deal with and adjust the "meager profit era" after the large-scale operation of retail industry has not been found. In the sound of the horn, it still regards itself as an omnipotent "carnivorous dinosaur". No enterprise can become an all-around champion, and it is difficult to ensure that many fronts can be invincible. Grab speed, fight for scale, and occupy the top of the mountain, which often only leads to bubble prosperity. 2. Poor management and backward management. Some consumers said that when they walked into Kmart chain stores, they often saw the goods on the shelves were messy, the price tag was skewed, and even the goods were often scattered in the aisle in the middle of the shelves. Consumers can't get through with shopping carts, so they have to turn around and divert. At the same price, naturally more and more people bypass Kmart and choose the pleasing Wal-Mart in the store.

What is the root cause of Wal-Mart's prosperity?

The smoke on the entrepreneurial battlefield gradually dispersed, but most of the winning enterprises could not get rid of the influence of the founders and their families, could not get out of the shadow of the "iron fist" leadership, could not continue their former glory, and even sowed the seeds of failure, and never recovered. When the legendary founder has become a legend, the dilemma faced by countless enterprises is: how to discard the legacy of the founder? How can the corporate culture and business philosophy from the founder's era continue to play a role? What kind of relationship should family business members maintain with business managers? The cultivation of succession team and the handover of leadership are both a science and an art, and Wal-Mart benefits from the inheritance of its corporate culture and business philosophy among previous leaders. It is precisely because they are cautious in inheritance and development, and the Walton family members have always maintained a moderate relationship with the enterprise that Wal-Mart successfully passed the hesitation period of "changing the dynasty" and resolutely jumped to a new peak. Is this book from Sam? After Walton's death, his successor's achievements reappeared Wal-Mart's half-century growth process and revealed Wal-Mart's successful management rules. By exploring the secret of Wal-Mart's continued success, all family businesses can solve the problem of eternal glory.

Wal-Mart succeeded in Europe and America, but why did it fail in China?

What should I do if something falls into the jar?

Reasons for the success of Wal-Mart's retail industry

The secret of success of Wal-Mart, the retail kingdom

1In August, 1996, Wal-Mart, the world's first retail brand, entered the China market and set off a shopping whirlwind in Shenzhen, shocking the traditional department store retail industry. What is Wal-Mart's marketing secret? Why should Wal-Mart build a retail kingdom that dominates the world?

Sam walton, the founder of Wal-Mart, once said

We work side by side. This is the secret. We reduce the cost of living for each customer. We want to give the world a chance to see what it is like to improve everyone's life through savings.

US$ 93.6 billion: Sales reached a world record.

No industry is more closely related to consumers' daily life than retail. An American scholar once defined the mission of retail industry as "improving living standards and spreading happiness". Wal-Mart is the most dazzling pearl in this industry.

199 1 year, Wal-Mart's annual sales exceeded $40 billion, making it one of the largest retail enterprises in the world. According to the classified ranking of American service industry 1994 published by Happiness magazine in May, the sales of Wal-Mart 1993 reached US$ 67.34 billion, an increase of more than11800 million over the previous year, surpassing Sears, which ranked first in 1992, and ranked first in American retail industry. From 65438 to 0995, Wal-Mart's sales continued to grow, setting a world record in retail industry, achieving annual sales of 93.6 billion US dollars, ranking fourth in Fortune magazine's list of 95 largest enterprises in the United States. In fact, Wal-Mart's annual sales are equivalent to the sum of all department stores in the United States, and it still maintains a strong development momentum. In contrast, the annual sales of some large department stores in China, such as Beijing, Shanghai and Guangzhou, are only several billion RMB, which is far from Wal-Mart.

Up to now, Wal-Mart has 265,438+033 Wal-Mart stores, 469 Sam member stores and 248 Wal-Mart shopping malls in the United States, Mexico, Canada, Puerto Rico, Brazil, Argentina, South Africa, China and Indonesia. It has developed so rapidly in just a few decades that it has to be said that it is a miracle of the retail industry.

How does Wal-Mart quickly develop from a small retail store to a large retail group and become the first retail brand in the world?

First of all, Wal-Mart put forward the aim of "helping customers save every penny" and realized the promise of the cheapest price.

Secondly, it is not enough to have cheap goods. Wal-Mart also provides customers with the new enjoyment of superb service. The company has always adhered to the principle of "service first, employees are different". When you walk into Wal-Mart, customers will feel at home.

Third, Wal-Mart promotes the new concept of "one-stop" shopping. Customers can buy all the goods they need in the shortest time and at the fastest speed. It is this fast and convenient way of shopping that attracts modern consumers.

In addition, although Wal-Mart has repeatedly reduced its advertising expenditure in order to reduce costs, it still gives generously to various public welfare undertakings. No pains, no gains. Wal-Mart's long-term investment in public welfare activities and its unique creativity have greatly improved the popularity of Pinjing brand and successfully shaped its outstanding image in the eyes of consumers.

Finally, the key reason why Wal-Mart can surpass Sears is that Wal-Mart adopts different retail management forms for different target consumers, occupying high-end and low-end markets respectively. For example: Wal-Mart Fair Shopping Plaza for middle and lower class consumers; Sam member shop that only provides various benefits and services for members; And the Wal-Mart department store, which is popular with upper-class consumers.

The above five reasons enable Wal-Mart to stand out from the retail industry and establish a unique contemporary retail kingdom. The following describes its success in detail from these five aspects, which may inspire domestic retail enterprises to accelerate the process of developing international retail brands.

First, promise the cheapest price.

All large supermarket chains adopt low-cost management strategies. What makes Wal-Mart different is that it tries its best to save money from various aspects, such as purchase channels, distribution methods, marketing expenses and management expenses, and puts forward the slogan of "parity every day and consistency", striving to realize the promise of cheaper prices than other firms.

Strict purchasing attitude, perfect delivery system and advanced inventory management are ...

What is the reason for Carrefour supermarket's failure in Japan?

Carrefour's success in China is obvious to all, but why did it encounter Waterloo in Japan? Is the preparatory work insufficient? Still not strong? Is there no localization?

At present, Wal-Mart, Carrefour, Metro and other retail giants are attacking everywhere and opening stores all over the world. As a huge emerging market, China attracts these retail predators all the time. Carrefour and Wal-Mart tied in the occupation of China market. In order to surpass Wal-Mart, Carrefour took the lead in entering Japan, another big market in Asia. The result was unexpected, but Carrefour, which wanted to get ahead, was caught in a dilemma.

Deli China and Trapped Japanese

China's huge population base, rapid economic development and lack of retail experience make foreign retail giants drool over this market. So the giants have sharpened their heads and tried their best to drill in.

For more than 30 years from 1949 to 1979, according to the population ratio, the commerce in China has not developed, but has been shrinking. Even in the 1980s, China's commerce still lags far behind the average level of developing countries, and can't compare with developed countries.

Carrefour had been operating in Taiwan Province for many years before entering Chinese mainland, which paved the way for its successful entry into the mainland market. 1995 12 Carrefour opened its first supermarket in Chinese mainland in Beijing, which opened the curtain for it to seize the Chinese mainland market. In the expansion strategy, Carrefour focuses on big cities, coastal cities and economically developed cities. From 1997 to now, it has successively entered Shanghai, Shenzhen, Beijing, Tianjin, Shenyang, Wuhan, Chongqing and other major cities. And successfully built a strong brand influence. Regionally, Carrefour is mainly concentrated in the eastern, central and northern parts of China. There are only four South China regions with high per capita income, mainly because these regions have long been the sphere of influence of its biggest competitor Wal-Mart. This is something that makes Carrefour very unhappy. 20011/7 Carrefour cooperates with Guangzhou Department Store Group Co., Ltd. and plans to invest 28 million US dollars to open three branches in two years, vowing to get a slice of Wal-Mart.

While Carrefour was smiling in China, his Japanese shop was miserable.

Obviously, compared with China, Japan is a country with more cultural personality, which makes many multinational group marketers who want to enter the Japanese market have a headache. Japanese people don't learn western languages, which makes it more difficult for these marketers to communicate with the Japanese. In addition, the Japanese believe that their goods are of the best quality, and foreign enterprises are national; In addition, Japan has the habit of trade protection in this respect.

More importantly, Japan's retail industry is also extremely developed, and European and American commercial enterprises are not dominant. Japan's convenience stores set up their first store from 1969. After rapid development from the late 1970s to the 1980s, by the end of 1997, there were 50 12 1 convenience stores in Japan, with an average annual growth rate of 47. 18%. For example, the most famous 7- 1 1 store was founded in 1974, and by the end of 1998, it had reached 7780 stores, with sales of1740.9 billion yen and profits of1/kloc-. Although Japan has a large consumption population and strong consumption capacity, it is still a hot fat for many international chain enterprises.

When Carrefour opened its first store in Xinduxin, Zhang Mu, Chiba Prefecture, it used 60,000 points of goods as a buying point to attract the interest of Japanese customers and wanted to bring the happiness of the French market to the Japanese market. And low price is another way to attract customers. 85% of the goods are mainly distributed by Japanese domestic manufacturers to ensure quality and price. At the same time, the scale of the shopping mall has reached 30,000 square meters.

But unfortunately, these preferential conditions have not been favored by the Japanese. According to the survey results of Nikkei Circulation News, 65,438+06.0% of the residents living around the store visited Carrefour for the first time, and 54.65,438+0% of the customers shopped in the business districts around Carrefour (such as Ito Yanghuatang and JUSCO Christie's GMS), but never crossed the border to enter Carrefour. Judging from the customer return rate, Carrefour stores in this business district have fewer frequent customers than Ito Yanghuatang and Jiashike stores nearby. Although it has been widely known in advance that Carrefour's commodity prices are low, local consumers in Japan have not actually felt this. In fact, the price of goods in this store is different from that in the surrounding stores. The reason is that Japanese manufacturers ... >>