Leadership and Teamwork
Leadership and Teamwork course, you selected a country for Walmart to expand to, and you also analyzed various leadership models and skills that applied to your selected country. Using the same country from BUS621, in this assignment you will build on your previous Walmart work and develop some place strategies as Walmart expands its global marketing activities to this country..
Address the following points for the selected country:
• Summarize some of the elements in your selected country’s political, economic, and cultural environments that can impact the market opportunity for Walmart expansion.
• Discuss the market expansion strategy you would suggest for Walmart in your selected country based on your environmental review and referring to Figure 12-4 in your text.
• Analyze each utility that Walmart may be creating in the country of your choice.
o As a reminder, you learned that channels create utility for customers (place utility, form utility, time utility, and information utility) that can be leverages as a source of competitive advantage.
• Explain which utility can potentially work as a competitive advantage for Walmart considering its target market and their needs, wants, and preferences in your selected country.
• Explain sustainability issues or opportunities Walmart will face in the new country.
• Formulate a strengths, weaknesses, opportunities, and threats (SWOT) analysis for Walmart.com in your selected country, considering the growth of global online retailers like Amazon.com, Aliexpress.com,
Walmart's Market Entry Strategy for Vietnam
Building on our previous analysis, let's explore Walmart's expansion strategy for Vietnam.
Environmental Analysis:
- Political: Vietnam boasts a stable, one-party communist government with a focus on economic development. Foreign investment is encouraged, but regulations can be complex.
- Economic: Vietnam is a rapidly developing lower-middle-income country with a growing middle class. Retail spending is rising, presenting a significant market opportunity.
- Cultural: Vietnamese culture values collectivism, respect for hierarchy, and family. Price sensitivity is high, and traditional wet markets remain popular.
- Leverage a local partner's market knowledge and navigate regulations.
- Mitigate cultural risks by adapting product offerings and marketing strategies.
- Gain consumer trust by associating with a local brand.
- Place Utility: Walmart's large stores offer a one-stop shopping experience, potentially more convenient than traditional markets.
- Form Utility: Walmart's global buying power can translate to lower prices on a wider variety of goods.
- Time Utility: Extended store hours and efficient checkout systems can save customers time.
- Information Utility: Clear product labeling and signage can improve customer shopping experiences.
- Challenges: Managing waste generated by large stores, sourcing products sustainably, and ensuring fair labor practices throughout the supply chain.
- Opportunities: Walmart can leverage its global influence to promote sustainable practices within its Vietnamese operations and supply chain.
- Strong brand recognition
- Global buying power for competitive pricing
- Experience in logistics and supply chain management
- Limited online presence compared to established players like Amazon and Alibaba
- Lack of experience in the Vietnamese e-commerce market
- Potential challenges in adapting the online platform to Vietnamese language and cultural preferences
- Growing internet penetration and smartphone use in Vietnam
- Potential to partner with local Vietnamese e-commerce companies
- Offer a wider online product selection compared to traditional brick-and-mortar stores
- Competition from established global online retailers like Amazon and Alibaba
- Potential for counterfeit products to be sold online
- Evolving Vietnamese government regulations on e-commerce