Wal-Mart Essay

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Introduction to International Business “Wal-Mart Case” teacher: Drs. H.C. Stek group 6 , team 5 students: Agnesa Krasniqi and Marie-Luis Berendes studentnumbers: 1919180 and 1938843 date of submission: 5th October 2009 1. What are some of Wal-Mart's FSA's? To what extent are these FSAs location-bound or internationally transferable? Wal-Mart’s FSAs are 'every day low price' and 'exceptional service'. These look like quite simple but the key point to the successful FSAs is Wal-Mart’s retail model. This model included that the retailers from Wal-Mart had very low profit that Wal-Mart gave them. This way Wal-Mart was able to keep the price low for their costumers (EDLP). They also give their customers a big choice of products by their huge variety of goods. Furthermore Wal-Mart has a very good system, technology and an excellent support from their suppliers. The 'exceptional service' included that all their staff smiles at the costumers and give them a warm atmosphere during their shopping. The FSA ‘every day low price’ can be location bound but also internationally transferable. There are a few fundamentals for this FSA. First the regulations of the foreign country have to provide the chance to expand at locations that are efficient for the company. There also has to be the ability to expand rapidly to make it possible to reduce costs so as to provide EDLP. Furthermore the loss-leader strategy should be allowed. Then finally, if you started big size operations you also can exercise more power over suppliers when purchasing German or other European products. If some of these fundamentals cannot be accomplished, their could be other options to transfer the FSA. But if none of them are achievable, the FSA is not transferable. In the US this is all possible. But not every country will allow this FSA. So the it

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