The Issues facing Wal Mart management

From the case study we find that the primary problem with Wal-Mart is the fact that it did not understand German consumer action before it entries German market and it used the American way to treat the German customers which is unsuitable. For example, German customers like a private shopping in their community or what War-Mart does opened a huge supermarket and begged their customers purchasing. The reason why we write the report is that to solve the main culture problem according to investigate the SWOT, Infestation, Five Push and Common strategy so that retreating the situation and choosing new solution to get the German market share (Written by Sally)

Situation analysis

About the internal environment, Wal-Mart has the leader position; advanced logistic system; batch of purchase model and strong power of excellent human resources to tolerate down the opponents. However, in the German market, the unpleasant lesson says Wal-Mart that it should learns propriety in the terms of increasing quickly and the classes of sale. For the exterior environment, Wal-Mart can use new strategy and new market model to obtain many new marketplaces (like Western and Chinese market segments), while, the hazards of Wal-Mart are also from many more competitors and unfamiliar local politics problem. Therefore, Wal-Mart must learn how to conclude the failing, how to connect the advantages and opportunities together to withstand the weaknesses and hazards (Compiled by Alisa). According Infestation to examination macro-environment, although politics situation is secure and many technologies are being used into business to increase working efficiency, the economic factor is not positive credited to aftereffect of global economic turmoil (Written by Sarah). At the same time, for the Five Makes analysis, the survey refers to the power of German consumers and the power of German opponents as follow. The German customers have strong electric power for purchasing because they have a whole lot of shopping environment choose such as Aldi and Plus. Alternatively, about the power of competition, one of the Wal-Mart's competitors Aldi does very well lies on beginning the stores near to the consumer group and making sure the high quality and good deal (Written by Sally)(http://www. aldi. co. uk/uk/html/company/all_about_aldi. htm). Wal-Mart used so many strategies to achieve and maintain cost-leadership position, which include new warehouse system, good deal everyday and effective use of store. It slice their cost to keep good deal to be able to satisfy the German customers (Written by Emily).

Generate and Evaluate of alternative

Compared with Emperor's Plan (Division and Sam's club), the Empress Plan (Franchise Model) is much more ideal for Wal-Mart to resolve the situation problem. The empress plan is aimed at achieve the common advantage between Wal-Mart and its own customers in order to acquire a lot more market show and avoids culture issues.

The empress plan has four main advantages which include: low cost, high competitive edge, convenience and better communication. Within the fields of Wal-Mart, for cost, regarding the franchise procedure, Wal-Mart can collects many franchisee fees which guarantee the cash-flow adaptable so that Wal-Mart can operates and manages successful and then declines the risk. As for the competition, the franchise model is not popular in Germany, for illustration, there are many convenience stores create in gas stop; therefore, Wal-Mart's convenience store has high competitive advantages. In the terms of concentrating on to customers, franchise model uses residents as employees who've similar culture backdrop with customers to sure better communication. About convenience factor, German people choose shopping in their neighborhood, and the convenience stores just open up on the roads which is convenient to the clients. In short, the franchise model fuses German culture, combines the German consumer tendencies and increases the brand image of Wal-Mart. Therefore, it is very well suited for Wal-Mart operation in German market. (Compiled by most of us)


According to these thorough research of Empress Plan, it focuses on 2 aspects to start a long-term strategy development: Marketing orientation and Working Management system.

As for the marketing orientation, there are 2 thoughts mentioned. To begin with, developing the market strategy on the basis of seeing offering as core, enhancing the profit of each convenience store and cultivating the first choice of employees, who are from the general head office of Wal-Mart, to encourage and stimulate the employees' eagerness. Secondly, according to improvement of brand image, creating a unique brand symbol can be another highlight for franchise model. For instance, Wal-Mart can use donation charity, sponsor environmental safety activities to generate good reputation and achieve better market show and new customers.

Refer to the working management system of franchise model; the plan will consider 3 aspects: the development of human resources, the introduction of places and strategy union. The plan will review respectively as follow. First of all, the development of human resource aims at store and train excellent employees, such as teacher and bursar to be able to ensure the income of franchisees. Secondly, the plan takes up with the thick development strategy so the convenience store existed on handy basic principle. Obviously, it is necessary for building narrative examine moves and quality research system to improve the technology of places to assure the benefits associated with every convenience store. This aspect reflects the key benefit of franchise model. Finally, the plan focuses on to construct the new theory to create USC ("Unique, Suitable and Convenient"). With building own-label brand product, Wal-Mart would provide lower price products which can entice so many low-end customers. For instance, it will open up very small kitchen in the store to sell some handmade food, such as sandwiches and soups, and it shows the differentiation good thing about unique. In addition, choosing the tiny deal and small size to suit the neighborhood culture, this shows the sutiable. Furthermore, the advanced logistics system promises the refrigerant products fresh and satisfies the clients convenient. Therefore, from these manners above, the empress plan focus on market orientation and working management system so as to fit the German culture and decrease the culture discord during the procedure in future. (Compiled by all of us)


From what has been said above, the report analyzes the explanation for Wal-Mart failed in German market and then assesses the challenge from inside and exterior environment. In addition, it selects the Empress plan, which is better for Wal-Mart's situation, to take up the German market talk about; because it promises the cash-flow of Wal-Mart, displays the competitive advantages among the retail industry, combines German consumer behavior and the convenience to customers. Furthermore, the Empress' plan can pay more attention on the introduction of marketing orientation and working management system in order to strengthen the operation of the franchise model. Therefore, Wal-Mart will choose franchise model to keep fighting with German retail brand in order to continue to gain a lot more market talk about in Germany. (Written by most of us)

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