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Context
Customers
High disposable income;
P. behavior: few trips & big planned
purchase;
Brand loyalty;
Processed food, rather than freshness.
Company
Competition
Wal-Mart leader in U.S.
Collaborators
Integrated IT systems with WalMart;
Low bargaining power;
Partnerships;
Efficient logistics.
Context
Competition
Intensified competition;
Local players dominating the market;
EDLP standard value proposition;
Supermarket as the most common format.
Collaborators
Lack of IT integration with
suppliers: purchasing &
distribution more difficult.
High
Low
uncertainty
Scenario
Planning
Maximum
sustained
yield
Build
resilience
Controllable Uncontrollable
Controllability
(1/7)
High
AGRESSIV
Citizen
protest
E
STATUS
I love
US!
QUO
Low
Cultural
change
RESticking
to
EDUCATE
ADAPTATI
traditions
ON
EXIT US out!
We want
Low
High
(2/7)
Aggressive
5-7
year
(changing store format)
s
+ higher decentralization (growth potential)
+ follows Wal-Mart global strategy (Mexico)
+ higher responsiveness to meet local needs
+ support of local authorities
Adaptation
Exit
month
s
+ no union problem
+ no change of value proposition
+ short time horizon
+ known losses
- not following global expansion strategy
- loss of the future market
- not following global expansion strategy
Re-educate
(educate chinese)
10 15
years
High
AGRESSIV
E
STATUS
QUO
Low
Cultural
change
REEDUCATE
ADAPTATION
ADAPTATI
ON
EXIT
Low
High
(4/7)
Strategic
Road Map (5/7)
Strategy: defining & implementing
it
Strategic imperatives
Key
Local autonomy
(org. structure)
Efficient staf
(corporate culture)
Guanxi
(ext. environment)
China coverage
(control, org. size)
Strategic
Road Map (6/7)
Strategy: defining & implementing
it
Critical initiatives
1.Identify change agent & involve
3.Support from top-management
(org.
(org. structure)
structure)
4.Communication
(corporate
(corporate
culture)
culture)
Efficient
Efficient
staf
staf
Local
Local
autonomy
autonomy
Key
Key
1st year
2nd year
3rd year
4th year
5th year
Strategic
Road Map (7/7)
Strategy: defining & implementing
it
(ext.
(ext.
environment)
(control,
(control, org.
org. size)
size) environment)
China
China
coverage
coverage
Guanxi
Guanxi
Critical initiatives
1.Establish budget for business related meetings
2.Contact & develop relationship influencer
3.Networking events: Chinese New year
4.Develop relationship with local Government
Risks
(a) Chinas Government: tighter restrictions to foreigner
(b) Product offering not aligned with local tastes:
Market research
Benchmarking
Pilot trial with only a set of stores
1st year
2nd year
3rd year
4th year
5th year
Team