Professor Smith
You Decide Assignment 2
1. Why do you think hypermarkets are more common in some countries than others?
Some countries governments support hypermarkets like for example China. Their government support of a retailer like Wal-Mart opening up in their country. This offers a variety of products. So they support the idea in hopes it will build up their economy, by increasing rural consumption and employment. However in some other countries government may not support the idea for example Germany. They had difficulties with the regulations and laws of this country when they open their retailer. Wal-Mart had to increase some prices are certain products. They were accused of pricing their products at a discounted price, below the value and consistently doing it. This would include products like milk, sugar and flour. Local competitors were outraged and this violated Germany’s antitrust laws.
2. What competitive advantages do foreign retailers such as Wal-Mart or Carrefour enjoy when they enter Asian Markets?
There are several of competitive advantages why would retailers such as Wal-Mart or Carrefour enjoy when they entering the Asian Market. One is reason is low discounted pricing on limitless products offered. Before Wal-Mart entered China, the local retailers offered the same brands and lacked customer service. Since they entered the NEW retailer offered a limitless of variety product, at low pricing and great enthusiastic customer service. The second reason is targeting a bigger market, for Asian countries have a large population. The bigger the market to target, with a variety of products thus leaves the more reaching the buy consumer needs.
3. What are some possible competitive advantages of local retailers? Are those advantages transferable to other Asian countries?
Some of the possible competitive advantages of locals retailers can be they target a niche market. The niche market can be anything, like