International Issues Ethics, Essay Example

In today’s globalized economy, even service industries are going international. One example of an international service industry is Wal-Mart. Wal-Mart Stores, Inc. operates over 8,400 retail stores in 15 countries (“Wal-mart,” 2010, p. 2). Those countries include Brazil, China, Mexico, and the United States (“Wal-mart,” 2010, p. 11). Their focus is on improving the quality of life for people by providing every-day, quality goods at low prices (“Wal-mart,” 2010, p. 2). Last year, Wal-Mart International added more than 21 million square feet of retail space (“Wal-mart,” 2010, p. 8). This year, they anticipate between 8% and 10% of additional growth (“Wal-mart,” 2010, p.8).

Wal-Mart’s biggest strategy focuses on everyday low prices (“Wal-mart,” 2010, p. 8). In other words, Wal-Mart uses a low-cost-provider pricing strategy. According to their annual report, they use this strategy both within the U.S., and internationally (“Wal-mart,” 2010, p. 18). In order to keep costs low, the retail giant has developed multiple distinctive competencies to support its low-cost strategy. These include a cross-docking system aimed at lowering shipping costs (Schroeder, 2011, p. 31). In this system, goods from suppliers’ trucks go directly to Wal-Mart trucks, eliminating the need for expensive warehousing of inventory (Schroeder, 2011, p. 31).

The retailer offers a variety of consumption items ranging from household goods to automobile accessories, and produces many of them under their store label, Great Value (walmart.com). Their main competition is from other big-box retailers like Target, and smaller discount stores like Dollar General. The main communication channels include television, mail, radio and internet (Chase, 2009). The corporation states in the annual report that it uses the same principles internationally, however, international growth is occurring for the retailer at a much faster rate (“Wal-Mart,” 2010, p.p. 8-11). In order to continue the rate of growth, the world will most likely continue to find Wal-Mart in more and more places.

References

Chase, J. (2009). Selecting Media for Marketing Communications: Wal-Mart Example Strategy. Retrieved From http://www.associatedcontent.com/article/2232969/selecting_media_for_marketing_communications.html?cat=35

Schroeder, R.G., Goldstein, S.M., & Rungrusanatham, M.J. (2011). Operations Management:Contemporary Concepts and Cases (5^th e.d.). New York, NY: McGraw Hill.

Wal-Mart 2010 Annual Report. (2010). Retrieved From http://cdn.walmartstores.com/sites/AnnualReport/2010/PDF/WMT_2010AR_FINAL.pdf

Wal-Mart.com Retrieved From http://www.walmart.com/