Walmart opened their first international store in 1991, which was located in Mexico. in 1992,Walmart International was created to oversee the operations in other countries.
Walmart had to closed stores in Germany due to their lack of equating the risk of that country's international market. German Regulations prohibited Walmart from offering weekend or extended hours. Strict unions laws kept Walmart from achieving low operational cost. Furthermore, German shoppers tend to split the shopping activites among different stores, so Walmart's revenue was not as high in Germany.
Sunday, March 28, 2010
New Acquisition (CH 7)
Recently, Walmart announced their plan to acquire VUDU. VUDU, a top digital services provider, enables instant access to digital movies on HDTVs or blu-ray players. Walmart's goal is to improve the home entertainment experience of customers by merging the digital expertise of VUDU with the retail knowledge of Walmart.
Sunday, March 7, 2010
Diversification
Walmart invest in business units that are related to their core business and provide value to the company. Using a related constrained diversification strategy, Walmart divided the company into 3 main divisions Walmart US, Wal-Mart International, and Sam's club . The 2009 Annual Report shows that Walmart US consist of about 63 % of the total revenue for the company. Walmart US is composed of discount stores neighbor markets, and Supercenters. Wal-Mart International is the second largest division with about 25% of the revenue. Currently, Walmart operates in fifteen different markets, which have a global focus of providing low cost products to customers. With 26.9 Billion in sales,Sam's Club, a deep discount wholesale provider, only makes up 12% of the company's total revenue.
I was surprised to find out that Walmart had their own realty company. Walmart Realty was designed to find businesses to move into their old Walmart stores or sell property near their current store locations. In 2002, they opened Walmart transportation to handle the flow of goods. Since Walmart uses a cost leadership strategy, the ability to manage the incoming and outgoing logistics is a great factor in their success
I was surprised to find out that Walmart had their own realty company. Walmart Realty was designed to find businesses to move into their old Walmart stores or sell property near their current store locations. In 2002, they opened Walmart transportation to handle the flow of goods. Since Walmart uses a cost leadership strategy, the ability to manage the incoming and outgoing logistics is a great factor in their success
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