Read the following case study based on Wal-Mart and answer the questions that follow, not all the answers can be found in the case study, you may be required to conduct additional research. Measuring Wal-Mart's impact on South Africa What exactly will Wal-Marts presence do to South Africa’s retail supply chain? A recent study tried to measure just that. According to the Supplychainforeseight research study, South Africa’s local retail sector is prepared to deal with Wal-Mart’s proven plan for success. Local retail businesses will try and compete with WalMart by emphasizing communication and increasing customer service. The local retailers are also expected to try and ‘streamline the supplier base,’ which could result in more stable, cost-effective contracts with suppliers. “Walmart might be defined as a supply chain business that happens to be a retailer; as opposed to supermarket chains, who are retailers who happen to be in the supply chain business,” industry consultant Malcolm Leitch said. One problem that retailers could face is the fact that Wal-Mart could have a significant advantage with its move into South Africa. Supply Chains in the country are seen as inefficient, which Wal-Mart could completely change. In the U.S. and European market, Wal-Mart faced much more competition thanks to a solid infrastructure of stable supply chains. Wal-Mart’s acquisition of Massmart earlier this year has sparked plenty of debate as to fair trade within South Africa, as countries as far away as Argentina opposed the deal. As the third largest distributor of consumer goods in Africa, the Wal-Mart takeover is expected to cause a pretty big rift in the South African market. Those against it say that while consumers will likely reap short-term benefits of lower pricing thanks to Wal-Mart’s leverage with suppliers to broker better deals, the long-term effects could be disastrous to South Africa’s small businesses. Q.1.1 According to above extract, how will local retail businesses compete with Wal-Mart? Q.1.2 Examine markets and local environment factors as a criteria for selecting a warehouse location and argue the problems local retailers could face as a result of Wal-Mart’s move into South Africa. Q.1.3 Examine supply chains and regional competitiveness and assess the competitiveness of Walmart in South Africa.
Read the following case study based on Wal-Mart and answer the questions that follow, not all the
answers can be found in the case study, you may be required to conduct additional research.
Measuring Wal-Mart's impact on South Africa
What exactly will Wal-Marts presence do to South Africa’s retail supply chain? A recent study tried
to measure just that.
According to the Supplychainforeseight research study, South Africa’s local retail sector is prepared to
deal with Wal-Mart’s proven plan for success. Local retail businesses will try and compete with WalMart by emphasizing communication and increasing customer service. The local retailers are also
expected to try and ‘streamline the supplier base,’ which could result in more stable, cost-effective
contracts with suppliers.
“Walmart might be defined as a supply chain business that happens to be a retailer; as opposed to
supermarket chains, who are retailers who happen to be in the supply chain business,” industry
consultant Malcolm Leitch said.
One problem that retailers could face is the fact that Wal-Mart could have a significant advantage with
its move into South Africa. Supply Chains in the country are seen as inefficient, which Wal-Mart could
completely change. In the U.S. and European market, Wal-Mart faced much more competition thanks
to a solid infrastructure of stable supply chains.
Wal-Mart’s acquisition of Massmart earlier this year has sparked plenty of debate as to fair trade within
South Africa, as countries as far away as Argentina opposed the deal. As the third largest distributor of
consumer goods in Africa, the Wal-Mart takeover is expected to cause a pretty big rift in the South
African market. Those against it say that while consumers will likely reap short-term benefits of lower
pricing thanks to Wal-Mart’s leverage with suppliers to broker better deals, the long-term effects could
be disastrous to South Africa’s small businesses.
Q.1.1 According to above extract, how will local retail businesses compete with Wal-Mart?
Q.1.2 Examine markets and local environment factors as a criteria for selecting a warehouse location and argue the problems local retailers could face as a result of Wal-Mart’s move into South Africa.
Q.1.3 Examine supply chains and regional competitiveness and assess the competitiveness
of Walmart in South Africa.
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Examine markets and local environment factors as a criteria for selecting a warehouse location and argue the problems local retailers could face as a result of Wal-Mart’s move into South Africa
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