I always think that responding to current market requirements will always deliver better results than one company can have just by responding to what other companies are doing. Last year Walmart decided to leave the German market . Walmart has come to Europe thinking that it can have the same kind of success as it did in north America. It forgot that European consumers don’t spend money like their American counter parts and many of the consumers prefer to buy from the nearest store rather than travelling to Walmart (Asda in UK). For example, in UK many of the customers buy from Co-operative where the prices are much higher than most of the super markets (Asda, Tesco, Aldi, Sansbury’s, Somerfield). It is more about the culture of the society that Walmart did not try to understood.
Now Walmart is opening Marketside (Walmart Marketside) to respond to the comingof Tesco in US market. Here, one can ask very logical question, is Walmart out of new idea for its growth? Should the investors think of their return on investment in Walmart, is walmart giving expected return etc. It can also happen that Walmart is opening Marketside to change the strategy for growth because it has experienced that growth is not possible by having those huge super markets. They need to enter the cities for future growth. It is good for the investors of Walmart if it has recognised the changing patterns of the society. If it is just a response to stop Tesco entering US market then management should think again because by fighting with each other no one will gain. It is so big country and Tesco has deep pockets too, in how many cities Walmart can go and have price war with Tesco?
Now Walmart is opening Marketside (Walmart Marketside) to respond to the comingof Tesco in US market. Here, one can ask very logical question, is Walmart out of new idea for its growth? Should the investors think of their return on investment in Walmart, is walmart giving expected return etc. It can also happen that Walmart is opening Marketside to change the strategy for growth because it has experienced that growth is not possible by having those huge super markets. They need to enter the cities for future growth. It is good for the investors of Walmart if it has recognised the changing patterns of the society. If it is just a response to stop Tesco entering US market then management should think again because by fighting with each other no one will gain. It is so big country and Tesco has deep pockets too, in how many cities Walmart can go and have price war with Tesco?
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