1. +
INTERNATIONAL BUSINESS - GLOBAL STRATEGY
Hanoi, Vietnam

2. +Definition
Defined
as an organization's strategic
guide to globalization.
Appropriate
in industries which faced with
strong cost reduction pressures but weak
local responsiveness pressures .
Require
to coordinate product and pricing
strategies tightly in international
markets & locations.
Hanoi, Vietnam

3. +
Definition
 Answer these questions:
What
must be the extent of a market
presence in the international markets?
How
to build a necessary
global presence?
Hanoi, Vietnam

4. + Advantages
 Cost-effective
Enables a company to focus on improving sales
 Branding
Allows companies to maintain a consistent image in
each country.
 Molding
successful strategies
- Replicates a strategy that has worked for it in one
market
- The success rate will usually be higher.
 Efficiency
- Enables a company to leverage economies of scale.
- Save a company money in labor, packaging and
marketing material costs.
Hanoi, Vietnam

5. + Advantages
 Life
Cycle
- Introducing older products into newer markets.
- Saving the launch of a product's most recent version
for well-developed markets.
 Improved
product and service effectiveness
The more you learn, the more effective you become at
rolling out new and improved product &service offerings.
 Stronger
competitive advantage
Adapt quickly wherever needed and largely based on
customer demands or trends in the global marketplace.
 Heightened
customer awareness
Customers can track the progress or lack thereof of a
product all over the world with the Internet.
Hanoi, Vietnam

6. +
Disadvantages
 Cultural
differences
The cause of failed global strategies.
 Legal
differences
- Pose a serious challenge to global
businesses
- Certain strategies that are effective in some
markets are not allowed in other markets
 Economic
differences
A major challenge to global business
strategies.
Hanoi, Vietnam

7. +
Disadvantages
 Political
differences
Various political regimes around the world have
different attitudes and policies toward businesses.
 Macroeconomic
risk
- Some markets have particular tastes or are more
sensitive to pricing.
- If a company estimates incorrectly, the mistake
could cost it a fortune.
 Operational
risk
If employment laws or corporation laws change in
the country where a company manufactures its
global product, then that could ruin everything.
Hanoi, Vietnam

8. +
CASE STUDY:
Hanoi, Vietnam

9. + Brief History
 The
biggest chain of
retailer and consumer,
provides large number of
quality products.
 Include:
grocery clothing,
pharmacy, toys, hardware
and various CDs, DVD
Musical instruments,
consumer electronics,
books etc.
 Every
Wal-Mart possesses
McDonalds
Hanoi, Vietnam
 Contains a photo shop so
people can do shopping
while their photos get ready

10. + Brief History
 An
innovative creation of Sam Walton
 Publicly
traded under the New York
stock exchange and recognize by the
symbol WMT.
 1962:
Sam Walton opened his first
Wal-Mart in Rogers, Arkansas.
 1980:
Wal-Mart had over 300 stores
and had accumulated over 1 billion
dollars in sales.
Wal-Mart the world’s largest
retailer in 2006.
 2006:
Hanoi, Vietnam

11. +
Business Model
 Operates
under 9 different
retail formats through 3
retailing subsidiaries:
(1)Wal-Mart Stores Division
U.S.,
(2)Sam’s Club, and
(3) Wal-Mart International.
 Adopted
a strategy
somewhere between
“Focused Low-Cost”
positioning and “Cost
Leadership”.
Hanoi, Vietnam

12. +
Hanoi, Vietnam
Strengths and Weaknesses
( The SWOT analysis )

13. +
Financial data from 2002- 2006
Hanoi, Vietnam

14. + Global Strategies
 Related
Diversification
move into the grocery business has also
positioned it against major grocery chains
 Wal-Mart’s
 Subsection
of some stores known as “Pennies-n-Cents” in
response to the dollar store retailers.
 Venturing
into web-based retailing through
http://www.walmartstores.com
 Cost
and Quality Emphasis
 Private
Brand Labels which enjoy the average US
consumer’s mind share
 Focus
Hanoi, Vietnam
on popular brands i.e. fast moving goods

15. + Global Strategies
 “Everyday
 High
Low Prices” strategy
labor productivity and low labor costs
 Superiors
bargaining power vis-à-vis suppliers
 Recognizing
Complementary Competitors
 Understanding
that manufacturer / supplier is
an economic partner
 Power
brands like P&G working closely with
Wal-Mart and reduce costs in its supply chain
Hanoi, Vietnam

16. +
Wal-Mart International: 2718 Units
Hanoi, Vietnam

17. + Challenges in International Strategy:
 Late
entry into foreign markets thus losing first mover
advantage
 Flawed
entry strategies in mature European markets like
unsuitable store formats
 Rashly
 Poor
made acquisitions without judgment
understanding of foreign customer psyche
 Anti-union
stance leading to union battles and workers’
lawsuits
 Poor
relations with the local community mention citizens’
groups
 Imposition
of previously relevant ways in US on new
Hanoi, Vietnam
consumers

18. +
Hanoi, Vietnam
Sustainability Strategies
of Wal-Mart

19. +
Thank you 
Hanoi, Vietnam