Assignment on E-Commerce Systems
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Added on 2021-05-31
Assignment on E-Commerce Systems
Added on 2021-05-31
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E-commerce systemsWalmart’s Ecommerce International ExpansionStudent’s nameName of the Institute
E-commerce systemsSection 1: Research Question and MethodologyProblem StatementHow does globalization influence the e-commerce growth of Wal-Mart.Wal-Mart Inc. is multinational retail corporation based out of America. The company has chain of grocery stores, discount department stores and hypermarkets. Sam Walton founded the company in 1962. Wal-Mart has 11000+ stores and 50+ clubs in 28 countries. The company operates with different names in different countries. For example, Wal-Mart is the name in United States and Canada, in United Kingdom its name is Asda (now sold to competitor), Best Price in India, Seiyu Groupin Japan, Wal-Mart de México y Centroaméricain Central America and Mexico and wholly owned operations in Canada, Brazil, Chile and Argentina. Wal-Mart is famous for its “Every Day Low Price” strategy. The company does this by maintaining lean supply chain strategy (Christopher, 2016). The forces of globalization have significant impact on e-commerce. These forces have helped the retail giant as well as create issues. Globalization increases the scope of e-commerce. The efficiency, market impacts and coordination are the major forces of globalization (Beck, 2018). The growing telecom and transport links in different world countries is attracting retailers to access new market through e-commerce. Customer’s changing lifestyle also supports company’s requirements to enter into e-commerce space (Andam, 2014). Wal-Mart is strong in terms of offline retailing. But when it comes to e-retailing, Amazon is big time player. The retailing companies now a days looks at both online and offline aspect of retailing. They look forward to brick and click approach. So Amazon started opening its offline stores like Amazon
E-commerce systemsGo (Amazon, 2015). Moreover, Wal-Mart started following different strategy to enter into e-commerce. The companies have significant presence in US market. The other competitors of Wal-Mart include Target and Sears. But Wal-Mart is far ahead in terms of offline retailing. Coming over internet retailing, Wal-Mart wants to leverage every opportunity in National and International Market. Wal-Mart has acquired multiple e-commerce company like Jet.com, MosseJow to compete with Amazon.com. Also these partnerships brought out large number of brands in Walmart’s kitty. So Wal-Mart is also acquiring stakes in e-commerce website of India: Flipkart. This shows that company wants to diversify its e-commerce arm in multiple countries. Research MethodologyGlobalization opens the path for companies to enter into world market. It is not additionalbut must to enter into global arena (Hirst & Bromley, 2015). The report explains how globalization is positively and negative impacting Walmart’s ecommerce. The later section of report discusses different approaches which Wal-Mart can follow to have sustainable competitive advantage in global space. The report analyzes and critically evaluates current e-business strategy of Wal-Mart.
E-commerce systemsSection 2: Research or Management ReportGlobalization Factors Affecting E-commerceThere are multiple factors which can explain how Globalization is impacting E-commerce of Wal-Mart.Positive ImpactsExpanded Market:The scope of market has increased due to globalization. Wal-Mart will evaluate different e-commerce markets before entering. So it gives Wal-Mart opportunity beyonddomestic market. For example, India is huge market that is growing rapidly. India has more than 50 million shoppers in the year 2016 which forms around 14% of full population. However, India has strict policies which say that overseas retail player cannot sell directly to consumer. There is exception in wholesale cash and carry segment. E-commerce segment allows the retailerto make 100% Foreign Direct Investment. So this is plus point for Wal-Mart. Different countries have different Foreign Direct Investment or retail for multi-brand or single brand retail; this has made Wal-Mart to change its strategies multiple times. The laws and regulations are more flexible now. This has led Wal-Mart to expand e-commerce across multiple countries. However, certain market entries are avoided. For example, the European Market is less attractive for Wal-Mart because of certain characteristics. The retail industry in Europe is mature. So for a new entrant it is difficult to take market share from existing players. This is difficult task for Wal-Mart. The competitors create entering barriers for new players (Hahn & Youn, 2018). Wal- Mart models are significantly copied in Europe by other players so it would not give competitive edge to the company. If there is some new offering then Wal-Mart can think of tapping E-commerce
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