What Would Walmart Do?

Post on 20-Dec-2014

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Our job was to select two countries which Walmart could consider to enter. Conduct secondary research and an environmental scan testing the viability of the world's biggest retail chain into those two countries. Present our findings and provide constructive recommendations.

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Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Agenda For The Day

• Environmental Scan– Italy– Australia

• What Would Walmart Do?

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Italy

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Population: 59,083,000Population Density: 200.78 (people per sq km)

Demographics

Regulatory Environment

Ease of doing business:• Ranked 78th out of 183 countries in 2010, 54th out of 183 countries in 2009•Overregulated

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Competitive Environment

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

• 6th largest market economy• Per capita income is $26,760.• Family- owned business is backbone• Unions = 40% of workforce

Economic Environment

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Socio-Cultural

• Family, Food, Fashion • A tavola non s’invecchi mai – One never grows old at the

table!• Prefer markets for fresh, home-made meals• Value “la bella figure”

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Australia

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Demographics

•Population: 212,948,000•Population Density: 2.8 (people per sq km)•Average Car/Household: 1.65

Regulatory Environment

Ease of doing business:• Ranked 9th out of 183 countries in 2010• Low regulations

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Competitive Environment

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Economic Environment

•Unions = 4% of workforce

•Australia has 14th largest economy by GDP

•Per Capita Income = $26,760

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Sociocultural Environment

•20% of population foreign born

•40% of mixed culture origin

•10% migrated from Asia, specifically India and China

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

Natural Environment

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

What Should Walmart Do?

• AVOID• Why?– Space– Ease of Business– “La Bella Figure”– Failure of MNCs

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

• Go Ahead with a Joint Venture• Why?– Growing Retail Industry– Similar Cultures– Trade relations

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

What Should Walmart Do?

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project

What Should Walmart Do?

THANK YOU!

Ashley Sporleder – Ketan Deshpande – Kim Dandurand A Marketing Management Project