Topic for report planning: A major international business enterprise. This stage of the
project requires you to select a major international business enterprise and
examine its experience in the light of the concepts and theories introduced in
the unit so far. These chapters cover foundation concepts and selected aspects
of the environment of international business studies.
Link to Unit Outline: http://www.canberra.edu.au/learningsupport/file/a0b14dad-985b-4635-914f-b04deac474ce/1/6241%20International%20Business%20G%20S2%202014.pdf
I. Identify a major international business enterprise
The reasons why Wal-Mart was chosen are as below:
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Wal-Mart’s role in the global pattern of trade
The largest retailer in the world, operating more than 11,000 retail units under 69 banners in 27 countries and e-commerce websites in 10 countries. It comes second on the 2013 Global Fortune 500 list of world’s largest corporation in with 2.2 million staff member and annual revenue at over $466 billion. Also, it’s US’s No.1 importer of containerized ocean cargo, importing 720,000 20-foot equivalent units in 2012
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Comparative Advantage:
Multinational firms like Wal-Mart take comparative advantage of their home country (e.g., financial services, agricultural products and processed food, high-tech innovation, logistics system in U.S) and from different countries (e.g. labour-intensive manufactured goods in China) which provide them with a global platform for location-based competitive advantage
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Competitive Advantage:
Wal-Mart can offer the lowest prices to customer by employing efficient supply chain management practices e.g. Hub and Spoken, Cross-Docking, point-of-purchase inventory control which help to cut down the cost of handling, operation and inventory storage. Its huge size also gives it the economics of scale and a strong bargaining position with its suppliers, enabling them to buy at cheaper price and spread the fixed cost as well as its efficient business practices and customer data over its retailing chains.
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New Trade Theory
Wal-Mart have already saturated most of the U.S domestic markets, the international market is the only one significant growth is possible. The new trade theory implies that in order to achieve economics of scale which is important factor of superior international performance, Wal-Mart has to gain access to larger global marketplace. The economic of scale, besides the benefits we discussed above, also gives Wal-Mart the advantage of first mover and create entry barrier to its rival firms
e-Marketing Excellence 