Design, and implement integrative strategies to improve the effectiveness of a companyâs global competitive position
Analyze, design, and implement integrative strategies to improve the effectiveness of a companyâs global competitive position. The following are the case studies assigned to teams:
⢠Walmart in Africa
⢠Alibaba versus Tencent: The Battle for China's M-Commerce Space
⢠Vodafone in Egypt: National Crises and Their Implications for Multinational Corporations (Egypt)
⢠Ethical Leadership: Ratan Tata and India's Tata Group
⢠IKEA in Russia: Emerging Markets Strategies and Ethical Dilemmas
Sample Solution
Walmart in Africa
Walmart entered Africa in 2011 with the acquisition of a 51% stake in South African retailer Massmart. The company has since expanded into several other African countries, including Ghana, Kenya, and Nigeria. However, Walmart's African operations have been fraught with challenges, and the company has struggled to gain a foothold in the continent's competitive retail market.
Full Answer Section
Analysis There are several factors that have contributed to Walmart's difficulties in Africa. These include:- Complex and fragmented retail landscape: Africa's retail market is highly fragmented, with a large number of small, informal retailers. This makes it difficult for large multinational retailers like Walmart to compete effectively.
- Supply chain challenges: Africa's infrastructure is poor, and this makes it difficult to transport goods and materials efficiently. This has led to high supply chain costs for Walmart.
- Cultural differences: African consumers have different shopping habits and preferences than consumers in developed markets. Walmart has struggled to adapt its business model to the African market.
- Partnering with local retailers:Â Walmart should partner with local retailers to gain access to their existing customer base and expertise in the African market.
- Investing in infrastructure: Walmart should invest in improving Africa's infrastructure, such as roads and warehouses. This would reduce supply chain costs and make Walmart's operations more efficient.
- Tailoring its product assortment: Walmart should tailor its product assortment to the needs and preferences of African consumers. This includes offering more locally sourced products and products that are smaller in size and price.
- Focus on rural areas: Africa is a predominantly rural continent, and Walmart could tap into this market by expanding its reach into rural areas.
- Develop mobile commerce solutions: Mobile phone penetration is high in Africa, and Walmart could develop mobile commerce solutions to reach a wider audience.
- Invest in e-commerce: E-commerce is growing rapidly in Africa, and Walmart could invest in e-commerce to reach more consumers.