Problem Analysis: Walmart: Case Study Of A Company

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Problem Analysis.
1. Merchandising unknown products
Before launching the Walmart’s production program, Sam Walton knew he is going to create a program for a company that will become the world’s biggest grocer. Sam knew that even though Walmart was known for general merchandise, it had no customer equity on fresh products. Due to this, he decided to go forward only with popular and respected products. In brief, he adopted the tactics of borrowing the popular brands equity and offering it to people.
TESCO, on the other hand, adopted another strategy. It is known that it’s very difficult for an unknown brand (like TESCO’s Fresh & Easy stores) to gain a consumers base. In addition to this, TESCO made this task even more difficult: they decided
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Maybe it looked good on paper, but it didn’t work in reality.
2. Creating reasons to be disliked (by yourself)
When Fresh & Easy had started their activity, they were not accepting neither manufacturer’s coupons, nor American Express, nor check-out. Their competitors offered all of these payment methods, this being a great disadvantage for TESCO. Without any doubt, TESCO thought these ways of payments does not fit with their concept. The fact that they were not adapting to people’s preferences made it really difficult to gain customer loyalty. The mistake is again going wrong from the beginning (The Guardian, 2012).
TESCO were acting in the US like they were in the UK, the place where they are very successful, instead of acting like they were a new born business with no reputation.
In this case, TESCO forgot to apply the “Cultural contingency”. They should have adapt a “decision making style that would fit the culture”, in this case they should have adapted to American
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If TESCO had understood it then the company would not have equipped the stores with self-checkout service. It persuades American consumers to shop like British. British shopping habits differ from the US shopping habits. American consumer prefers to buy more goods per visit but shop less often than the British consumer. In addition, US consumers like to interact with vendors asking questions and sharing stories, this is a deeply rooted practice. Therefore, it was a bad move to introduce self-checkout technology in stores in the US because it did not match with its market characteristics (The Independent,

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