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Hypermarkets

In: Business and Management

Submitted By J1Promo
Words 550
Pages 3
MGT430
YouDecide
Hypermarkets
Hypermarkets are huge superstores. Hypermarkets have been very successful in Europe and other world markets. Many retailers now operate formats such as hypermarkets that perform many wholesale functions. In return, many large wholesalers are setting up their own retailing operations. Another reason why it is a challenge for hypermarkets in certain areas is because of location.
In western countries such as India hypermarkets would have to be located within cities opposed to the outskirts of urban areas which would create a problem of location. “People have cars but it’s a nightmare driving back and forth,” Padmanabhan says, “So if you’re looking at opening a big footprint store in a city you have a lot of constraints, apart from availability of space and location, regulation and things like that” (Padmanabhan, 2010). Wal-Mart expected the Korean consumers to drive to its stores for price shopping as the American consumers do. However, this location strategy did not match well with the Korean consumers’ lifestyle and shopping habits.
As the “youdecide” stated adapting to the culture of another area is a reason why the hypermarkets are not common in some places. In North America where consumers want low price, Wal-Mart’s low price offering was matched with customers’ definition of value. Wal-Mart has retreated from Korea and Germany. This is because Wal-Mart needed to localize its products and services to foreign market’s tastes and preferences.
Competitive advantages foreign retailer enjoy in Asian Markets
The key is the ability to adapt to overseas market conditions largely determines success of international operations of foreign retailers such as Wal-Mart and Carrefour. Wal-Mart’s main competitive advantage has been its ability to offer the most competitive price to consumers by having a cost efficient operating system that…...

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