Singapore is the most developed economy in the Southeast Asia region with a GDP per capita of more than $90000. The country has a well developed retail sector buoyed with strong consumer base, high disposable incomes, high literacy rates and its strategic location. This presented a review of macro environment, competitive and SWOT analyses of the Singapore’s retail industry to determine how Walmart Inc can successful enter the market. The review found that the strength of Singapore lies on its favorable business laws and regulations, business-friendly tax rates and high disposable incomes among Singaporeans. Singapore is also highly developed in terms of physical infrastructure and serves as one of the busiest air traffic and sea port hubs in the world. The high disposable income and economic freedom makes it hugely attractive for retail business like Walmart.
Stable political climate and socio-cultural diversity also attracts new businesses to the country. However, the study found that corona virus pandemic and high labour and rental costs posed the biggest threats to Singapore retail industry. Nonetheless, the paper suggests adoption of franchising market entry strategy as the most appropriate. Franchising is the most appropriate approach due to low costs and reduced risks of failure. To be successful, the retailer must select a franchisee of good reputation and with a shared vision. Lastly, Walmart can select a franchisee and prepare to enter Singapore market after country opens up for business in the aftermath of the current pandemic.
Table of Contents
- Introduction
- Market overview: Singapore
- Business overview: Walmart Inc
- Industry sector: Retail industry
- Why Singapore
Objectives and Key Themes
This paper examines the potential for Walmart Inc. to successfully enter the Singapore market, analyzing the country's retail landscape and identifying opportunities for the company's expansion. It aims to evaluate the viability of a market entry strategy and assess the potential challenges and opportunities presented by the Singaporean market.
- Singapore's economic and business environment
- The competitive landscape of the Singaporean retail sector
- Walmart's strengths and weaknesses in relation to the Singaporean market
- The suitability of franchising as a market entry strategy for Walmart in Singapore
- Potential challenges and risks associated with entering the Singaporean retail market
Chapter Summaries
- Introduction: This chapter introduces the concept of globalization and its impact on businesses, emphasizing the importance of geographical diversification for competitive advantage. It highlights how Walmart Inc. can leverage its strengths to expand into new markets, particularly focusing on the Singaporean market.
- Market overview: Singapore: This chapter provides a detailed overview of Singapore's economic landscape, emphasizing its status as a highly developed and globally competitive economy. It discusses the country's strong retail sector, its strategic location, and the factors that make it attractive to international businesses.
- Business overview: Walmart Inc: This chapter presents a comprehensive overview of Walmart Inc., including its history, business model, and global presence. It highlights the company's strengths and its potential to succeed in the Singaporean market.
- Industry sector: Retail industry: This chapter analyzes the Singaporean retail industry, outlining its key characteristics, including its size, structure, and main players. It examines the drivers of growth and the challenges facing retailers in the Singaporean market.
- Why Singapore: This chapter delves into the reasons why Singapore is a particularly attractive market for Walmart Inc., highlighting its favorable business environment, strong infrastructure, and strategic location.
Keywords
This paper explores key concepts related to global expansion, market entry strategies, and the retail industry. It specifically examines the Singaporean market and its attractiveness to international retailers like Walmart Inc. Key terms include globalization, market diversification, franchising, retail industry, Singaporean economy, competitive landscape, and business environment.
- Quote paper
- Difrine Madara (Author), 2020, How Walmart Inc can successfully enter Singapore market, Munich, GRIN Verlag, https://www.grin.com/document/961652
