Wal-Mart Company in South Korean Market
It was back in the year 1990 when the Wal-Mart company entered the market in South Korea as a means to increase its perimeter nationally. In contrast, it is daring in South Korea country was not all profitable till the late in the year 2005. There are significant reasons for the Wal-Mart company failure. This was characterized by events such as differences in preference of commodities as compared to US customers. Moreover, there was a poor location of stalls which lead to no attraction of any traffic of consumers neither did it enhanced convenience of access (Keegan & Green, 2015).
Further, the inexpensive costs techniques, which is the main advantage for the company, was not positively considered in the South Korean Matt. This is in that; it was unable to fit into the competition rhythm of other matt competitors in a similar place. This made the company to join the other ensemble of organizations that they were unable to fit equality into South Korean matt; these include companies like Nokia and Google. These, therefore, shows that South Korea has different orientations & distinct markets requirement in a manner to conduct market. This case hence assists Wal-Mart company in analyzing what could have been done to resolve these issues helping the company to attain success in the business. The main aim of this paper, therefore, is to determine what could have been done by Wal-Mart company to be able to succeed in South Korea despite the challenges faced.
Wal-Mart Could Have Been Lowering every day Its cost (EPLD) techniques: This strategy works excellent where low prices for company products all under its suppliers that may include whole and retails sales stores could have been provided. There is the main competitive advantage that the company has in the United States (Kim & Seo, 2017). Sequencing its challenges rationales in this country markets where the buyers have a distinct preferential smack of commodities, the Wal-Mar business in this country could have enfolded the commodity requirement of the market & in turn proposed inexpensive costs to be different from other stores and supermarkets in South Korea.
Wal-Mart Company Could Have Imposed Many Large Number of Operations Stores in South Korea and Strategically Located Like That in the US: It is also a successful strategy possessed by the company stocks Inc. This is in that; the company could have enhanced comfort of outburst therefore suitable to the customers making the company successful. However, in South Korea markets, Wal-market didn’t apply this strategy; the stocks were not strategically placed in a manner that will be able to be accessed easily. Therefore, customers did not enjoy the convenience, which in turns bestowed to the challenges in the email. Wal-Mart could have applied this strategy.
Wal-Mart Could Have Encouraged Online Based-Business Where the Organization Has Web Through Which It Retails Their Commodities Via It in South Korea Market: This was an advantageous technique that could have solved the challenges of impoverished places of stocks in South Korea. The implementation of online shopping in South Korea by Wal-Mart could have raised the success of the company (Martínez & Galván, 2017). Many customers in South Korea prefer online shopping using their phones to acquire the commodities they need. They were also comparing the prices of the commodities using their phones than going to stores to acquire the products. Therefore, this strategy could have been used by the company to raising the demand for its product, thus making the organization at whole successful.
In conclusion, Wal-Mart company, despite its challenges faced when it extended the business to other countries, specifically South Korea. It was its time to come up with other strategies that could have helped the company to succeed like online shopping and strategically locating the stores in the country for ease of access by the customers to mention a few. These factors could have raised access to its goods and services to customers making the company successful.
References
Keegan, W. J., & Green, M. C. (2015). Global Marketing, Global Edition. Pearson Education UK.
Kim, P. J., & Seo, J. H. (2017). Does Walmart Introduce RFID Successfully?. 한국유통과학회 학술대회 논문집, 347-348.
Martínez, A. B., Galván, R. S., & Alam, S. (2017). Financial Analysis of Retail Business Organization: A Case of Wal-Mart Stores, Inc. Nile Journal of Business and Economics, 3(5), 67-89.