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With the international economy development, more and more multinational companies emerging.The bluring of multinational companies gives the reason for more and more scholars to analyze the deep reason of it. Furthermore, those multinational companies especially companies on a large scale like Wal-Mart is more inclined to choose to develop its market in developing countries like China and Vie nam. Recently, more and more multinational companies change their focus from China to Vietnam. The present paper is intended to research the reason through analyzing the environment and present situation of Wal-Mart. The final goal of the report is to give recommendations for the Vietnam Wal-Mart developing. Wal-Mart store is set up in 1962 by Sam Walton.With the development of over 40 years,it becomes the largest private company and the largest retail store in the world. At present, Wal-Mart owns around 6600 stores in the world with over 18 million employees. Its business covers 15 countries. Every week there are around 17.5 million customers in Wal-Mart. ( Baker,2008 ). The obvious character of Wal-Mart is cheap price with high quality goods. It has three sales forms which include shopping plaza, Sam’ club and Wal-Mart neighborhood market. The shopping plaza helps customers save the money and time to get the relatively good goods. Sam’ club offers the brand goods with favorable price. Wal-Mart neighborhood offers the cheap price and consilience for the public in community.
2. Environment analysis环境分析
Wal-Mart environment analysis includes the international environment and Vietnam domestic environment.Both of these two environment have advantages and disadvantages.
2.1.External environment analysis外部环境分析
In regard to the advantages of external Environment for Wal-Mart, it includes free trade, optimistic attitudes toward foreign investors , respect for intellectual property rights and bad situation.
Firstly, with the development of global economy, multinational companies become common . In order to make the international business more smoothly, free trade is taken by Vietnam.
According to Homburg, Christian; Sabine Ester, Harley Ohmmeter ,On the one side, free trade could help build friendship between Vietnam and other countries, on the other side, free trade creates the win to win situation for each country.In order to bring in more international companies, Vietnam takes adopt of free trade strategy(Homburg and Chiastic,2009). It’s not only favorable for Vietnam, but also appreciated by Wal-Mart.Free trade stragegy decrease the cost of the international company.
Secondly, international environment drives every country to hold the optimistic attitudes toward foreign investors. In order to bring in more international profit and promote local economy, Vietnam have the optimistic attitudes toward foreign investors. Especially for the Wal-Mart, the largest palatial store in the world, is very favorable by Vietnam.
Thirdly, the increase of the respect for intellectual property rights like brands. With the improvement of life quality, the public put more attention to property rights. Besides, the development of actuation also improve quality of the nation. It drives the whole country to have more respect for intellectual p ropery rights. The respect helps to draw the attention of Wal-Mart.
Last but not least, the bad situation of War-Mart in China provides a good chance to Vietnam. On the one side, America economy develops relatively slowly, which lead to the American enterprises facing the unprecedented challenges. In order to keep customers, War-Mart adopts the low-price strategy under the bad situation. On the other side, with the emerging of Chinese economy, it has to bear the pressure that raw material price rises, labor cost rises, and appreciation of the RMB. In other words, the cost of Chinese is raised. War-Mart has to change its focus. Based on the above situation, Wal-Mart makes some part of order transition to Vietnam. For example, wrapping paper, although the cost of rapping paper is better in China, but the tax is lower in Vietnam. Attributing to low tax, Wal-Mart chooses the Vietnam as its wrapping paper supplier. Vietnam starts drawing the eyeball of the Wal-Mart purchasing agent.
In regard to the weakness of Internationale centromeric, it includes bad balance of payments situation and devaluations of the currency.
Firstly, Vietnam faces the embarrassing situation that payments situation is unbalance.According to Acer,the reason of the unbalance is the unbalance of the global economy, especially the unbalance of American economy. It results to the unstable international economy .(Acer,2008).
Secondly, The devaluations of the currency lead to the low interest of Vietnam. Although Wal-Mart is the largest retail stores, the Squanto of the purchasing raw material might be large,yet the profit and interest are very low, especially for the contemporary international environment.
2.2. Internal environment analysis内部环境分析
Internal envrionment analysis includes the political environment and domestic environement.
Firstly, in regard to the internal environment, the advantages are as follows: stability of local political system provides the stable environment for Wal-Mart stores development in Vietnam; internal conflict is rare, which gives a safe promise for Wal-Mart; Vietnam is a reliable centry as a trading partner. The reliability of Vietnam brings in many international countires and most of the international countries appreciate to coorporate with Vietnam; besides, the labor cost is very cheap, which decreases the cost of Wal-Mart. Besides the advantages, there are three weakness included: complicated external threat brings many challenges for Vietnam. Wal-Mart will have distraction at any time. Unstable tax situation leads to a potential cost raised for Wal-Mart. Furthermore, Vietnam reform public administration is too late, which makes Vietnam lose many opportunities from international companies.
Secondly, in regard with the domestic economic environment, it mainly includes the following two advantages: Vietnam’s Commerce growth offers the enough customer for Wal-Mart stores; Complete transportation provides conveniences for Wal-Mart’s distribution, which decrease the cost of the store. However, the advantages of domestic economy cover many aspects: such as high inflation, low per capital income and low energy resources.
3. Situational Analysis形式分析
3.1. Mission and Goal任务及目标
The mission and target goal of the Wal-Mart in Vietnam is to develop the market and to bring in more profit. According to .Ann Zimmerman , Wal-Mart is a very tightest company attributing to its low-price strategy（Ann,2010). The low-price strategy of Wal-Mart directly leads to low cost. Therefore, the purchasing Department of Wal-Mart tries their best to purchase the raw material at the least price in Vietnam.
The Characteristics of Wal-Mart in Vietnam are as follows:
Firstly, the low-price stratagem is the most outstanding of Wal-Mart. The low-price strategy helps Wal-Mart to bring in customers as many as possible.
Secondly, the low cost is one of the most important characters of Wal-Mart in Vietnam. Wal-Mart pays much attention to its cost control. For example, Wal-Mart would like to help its specified cloth factories to find better fabric factories. Those better factories have advantages in quality and price.
According to Oakland, Calif, customer groups could be divided into three parts: customers with big value, mainstream customers and customer with small value (Daniel, 2010). Customers with big value have the strong purchase desire to buy high-end product, which brings companies large profits. Mainstream customers mainly focus on low-end product, which brings companies large market share. Customers with small value have a low purchase and rare to make profit for Comines. Wal-Mart stores’ target customer is the mainstream customers. The mission of Wal-Mart in Vietnam is to occupy market share as large as possible. To get the market share is the final goal of Wal-Mart
The core competencies of Wal-Mart in Vietnam are as follows: Firstly, the low cost leads to the relatively high profit. Secondly, the low-price strategy helps to have a relatively big market share. Thirdly, the advanced avengement system provides the institutional policy promise for enterprise development.
4. Strategies for Development发展战略
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