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Wallmart Business Case Study

Essay by   •  June 24, 2018  •  Business Plan  •  1,380 Words (6 Pages)  •  576 Views

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Walmart Entry Strategy

By: Sidiq Vidyasto

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Executive Summary[pic 3]

Walmart is one of the US multinational companies. The business has considered Indonesian market as the next target. Therefore, the key opportunities and the potential for this case will be conducted to run the strategy to enter the market.

Indonesian Retail Industry is predicted to grow until US$ 1.07 Trillion target and its business strategy has shown some similarities with Indonesian retail market. Based on the

analysis, the potency of Walmart in Indonesia is relatively high.

While putting cost of time, Indonesian’s geography structure, the marke related to retail industry, acquisitioning local retail company is recommended as the entry strategy. In addition, In-store and non-store retailing should be put into consideration as the store type.

The        business        needs        to        adapt        with        the        organizational        culture,        employee’s

management system. The business strategy needs to alter the sales strategy, pricing strategy and

marketing        strategy        into        Walmart’s        needs.

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Indonesian Retail Market Has Shown Potential Business Growth that is Suitable to Walmart’s Target

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Indonesian Sectors that offer US$1.8 trillion

2012

Indonesian Current Market State

business opportunity by 2030

16th

largest economy in the world

45 million

members of the consuming class

Private

US$ 0.5 trillion  market opportunity in consumer service, agricultures,

40

30

7.2

Education

fisheries and education

53%

of the population in cities producing 74% of GDP

Resources**

270

200

7.0

55 million

skilled workers in Indonesia

(SDA)

Agriculture

450

310

6.0

2030

Indonesian Future Market State

and fisheries

(US$ Billion)

7th

largest economy in the world

Consumers/

1070

810

7.7

135 million

members of the consuming class

Retail

  • US$ 1.8 trillion  market opportunity in consumer service, agricultures,

fisheries and education

Total

1830

1350

7.3

71%

of the population in cities producing 85% of GDP

(US$ Billion)

113 million

skilled workers in Indonesia

Project Growth 2010/11-30 (US$ Billion)

Compound annual Growth rate, 2010/11-30 (%)

**)Only Include upstream energy market        Source: McKinsey Global Institute

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