Global International Markets Research Paper Example | Topics and Well Written Essays - 2250 words

Global International Markets - Research Paper Example According to Wensley, global strategic market is â€Å"initiating, negotiating, and managing acceptable exchange relationships with key interests groups or constituencies, in the pursuit of sustainable competitive advantage within specific markets, on the basis of long run consumer, channel and other stakeholder franchise† (Wensley, 1982). The Wal-Mart Wal-Mart is one of the largest retail stores chain in the world and was established in 1962. On the basis of the strategic perspective, the Wal-Mart is structured into three main segments namely, Wal-Mart United States, Sam’s Club and Wal-Mart International. According to the statistical report of the company, in 2011, the Wal-Mart’s revenues constitute up to about three-fifth of the United States market. The web portal, Wal-Mart.com also contributes heavily to the total turnover of the company, constituting nearly 8% of the total revue through online retail operations (Wal-Mart 2011). Today, the company operates th eir business in over 15 countries, accounting for 25% of their net sales. Their selling policy includes promotion techniques of discounting outlets, restaurants, superstores, retail stores and multiple formats of outlets, to gain the maximum satisfaction of their customers especially in countries like China and Japan. The retail and online operations of the Sam’s club contributes about 10.5% in terms of annual revenues to the company. Moreover, the company holds the top position for employing over 2.1 million people, which remains bigger than all other major retailers (Carrefour, Tesco and Metro AG) put together (Wal-Mart 2009).Besides, the company functions nearly 3000 superstores, 720 discount outlets, and more than 600 Sam’s Club outlets in the United States. Globalization of Markets Globalization of Markets refers to the integration of national markets into one large global marketplace. Today international trade has become much easier as the hurdles of crossing the borders for trade is eradicated. All companies like to offer a standard product worldwide. However, there are considerable variances existing among each market such as, consumer tastes and preferences, cultural variations, and legal regulations. Such variations in the international market make a company to adopt strategies that may match with the conditions of a country’s market. Wall-Mart may still require diversifying their products across each country according the local tastes and preferences. Globalization of production The term globalization of production is associated with sourcing of goods and services from various locations across the globe while taking advantage of the variations in cost and quality of factors of production across the regions. Here, Wal-Mart operates over 4200 outlets in the global markets and which constitutes a quarter of its annual revenues. Its efficiently running primary retailer markets like Mexico and Canada enhance a fast market expansion a cross South America, Africa and Asia (Wal-Mart 2009). Driving Forces There are various drivers of globalization in the global marketplace. When a company becomes subject to these forces, they practically become candidates for globalization. The major driving forces of globalization are; technological advances, global economic growth, converging market needs and wants, pressure to improve quality, opportunities for