Resolving Structural Paradox

Purpose

The purpose of this paper is to combine secondary sources and interviews with Chinese
suppliers to explore the structural paradox faced by retail multinational firms in China as
they balance the competing demands of standardization and localization. The authors
describe the challenges faced by two retail giants, Walmart and Carrefour, as they attempt
to replicate in China their lean retailing successes elsewhere in the world.

Design/methodology/approach

This is a comparative study of Walmart's and Carrefour's ventures into the Chinese
market, largely based on publicly available secondary sources, but also incorporating
interviews with three Chinese nationals engaged in supplying these firms.
Findings

Walmart and Carrefour have so far failed to extend their oligopolistic dominance to the
Chinese market. Walmart has stressed its wellknown standardization of operations,
whereas Carrefour has better adapted to the Chinese economic culture. Issues identified
are: the formation of partnership alliances and their impact on store location choice; the
effect of underdeveloped infrastructure on distribution and logistics; the unique Chinese
business culture guanxi (using social capital to build business relationships) and its
influence on supplier relationships; the variety of consumer behavior and its effect on
procurement and sourcing; and an immature information technology environment which
impedes information sharing between supply chain partners. While both firms have had
some degree of success, neither has been able to match the combined growth of their
larger Chinese competitors.
Research limitations/implications

The authors are cautious in drawing normative conclusions or making predictions about the
future. Both firms face significant obstacles as they challenge China's largest domestic retailers.
Originality/value

Many multinational corporations are aware of the topology of the Chinese market, what they
lack is an indepth understanding and the skills needed for effective operations. This paper
discusses the effectiveness of the strategies adopted by two leading global retailers as they
attempt to resolve the paradox presented by the competing demands for standardization and
localization and includes information provided by three of Walmart's and Carrefour's local
Chinese suppliers

SWOT vs RBV
Background of SWOT Analysis
SWOT analysis was introduced by Albert Humphrey at the Stanford Research Institute in the
1960s and 1970s as a result of a research project. He was a business management consultant who
founded the Stakeholder Concept, now known as TAM, or team action management. Strengths
and weaknesses are internal company factors, while opportunities and threats are external
factors.

How to Use SWOT Analysis

SWOT analysis can be used in many ways, including analyzing business competitors, industries,
processes and business ideas, and evaluating personal issues such as narrowing college searches
or reviewing strengths and weaknesses before a job interview. When using SWOT for business
analysis, consider your organization, your market, your industry and your operating environment.
Gather information in these four areas about strengths, weaknesses, opportunities and threats.
Get input from stakeholders and experts in your business. Using a simple grid with four equal
sections, summarize strengths and weaknesses on the left of the grid and opportunities and
threats on the right side. Use the information with teams, committees or in planning meetings to
make improvements and reduce or eliminate errors and problems.
Related Reading: SWOT Analysis for HR Practices

Background of RBV
RBV, or resource-based view, was named by Birger Wernerfelt in 1984. It is a strategic tool that
focuses on unique and valuable resources that a firm has that give it a sustained competitive
advantage. A resource-based view in business management focuses strategic planning on
identifying and developing these resources in areas such as branding, customer relationship
management and product development. Valuable resources include things such as machine
capacity, customer loyalty and technological leads.

Using RBV
A resource-based view is used in many ways in business, such as in mergers and acquisitions. A
business may buy another company with attractive resources to reduce areas of weakness in the
purchasing business. RBV is also employed when resources are used as stepping stones to
business development. For example, a company that wants to enter a new industry could use its
existing resources to make a product for that industry as a stepping stone to developing a new
product line.

Focus on International Competitiveness

Abstract
T h i s s p e c i a l i s s u e o f J A M S i s d e d i c a t e d t o t h e general concept of

international competitiveness,

viewedas a strategic phenomenon inherent in the broader fields of international marketing,

international business, and interna-tional management. Broadly,
international competitivenessis a measure of an organization

s advantage (or disadvan-t a g e ) i n m a r k e t i n g i t s p r o d u c t s a n d / o r s e r v i c e s i n

g l o b a l markets.
The introduction to the special issue provides an o v e r v i e w o f i n t e r n a t i o n a l
c o m p e t i t i v e n e s s , e x a m p l e s o f multinational enterprises and their indicators of
internationalcompetitiveness, and a description of the 10 articles in the i s s u e .
A p p r o p r i a t e l y, i n t h e s p i r i t o f J A M S

b r e a d t h o f coverage, the articles in the issue broadly address interna- tional competitiveness
issues related to the scope of the fieldof international marketing, multinational enterprises,
small-medium enterprises, culture, exporting, foreign market sub- sidiaries, and offshoring and
outsourcing. Naturally, some of the articles span multiple areas as wel
Conclusion
I appreciate the inspiration provided, unbeknownst to her, by Susanna Easton

s half-a-century of work on and dedica-tion to the topic of international competitiveness,

mainly inthe administrative roles she has held in the U.S. Department of Education. In that
respect, Ms. Easton

s dedication to thetopic partly served as the motivation for this special issue of the
Journal of the Academy of Marketing Science
. Clearly,the topic of international competitiveness is increasing in i m p o r t a n c e t o t h e
f i e l d o f i n t e r n a t i o n a l m a r k e t i n g ( a n d others). However, Ms. Easton

s dedication to the topic for such a long ti me helped cr ystalize the idea to
allocate anissue of JAMS to

international competitiveness

w i t h a n anchoring in the field of (international) marketing. A m o n g m a n y a c c o l a d e s ,

Susanna Easton received the

Educator of the Year

award from the Academy of Inter-national Business (AIB) in 2009 and is an Honorary
Fellowof AIB

one of only 17 people in the world bestowed with t h i s h o n o r i n t h e E d u c a t o r o f t h e

Yea r c a t e g o r y ( a s o f t h e publication of this issue). Another positive effect of Ms.Easton


s work on international competitiveness is its influ-ence on several other parts of the
world adopting and think-i n g a b o u t a d o p t i n g t h e i n f r a s t r u c t u r e o f t h e U . S .
F e d e r a l Government

s grant program titled

Center for InternationalBusiness Education and Research.

Ms. Easton both startedt h i s C I B E R p r o g r a m a n d h a s s e r v e d a s i t s

a d m i n i s t r a t o r s i n c e i t s i n c e p t i o n i n 1 9 8 9 ; p r i o r t o t h a t , a n d a l s o d u r i n g her CIBER
time, she administered several other programs inthe U.S. Department of Education dealing with
internationalcompetitiveness.I hope you enjoy these articles, written by a fantastic set o f
authors, that resulted from the special issue call for papers.

Blue Ocean Strategy dan Ekonomi Kreatif

Oleh Prof. Dr. H. Faisal Afiff, Spec.Lic.
Salah satu tema penting tentang wacana manajemen stratejik lima tahun belakangan ini dan
agaknya masih menjadi topik perbincangan hangat sampai saat ini, adalah respon terhadap
gagasan profesor asal Korea, W. Chan Kim dan rekannya dari Perancis Renee Mauborgne, yang
tertuang dalam buku mereka berjudul Blue Ocean Strategy, suatu gagasan inovatif tentang
menciptakan ruang pasar tanpa pesaing. Blue Ocean Strategy pada dasarnya adalah suatu siasat
untuk menaklukan pesaing melalui tawaran fitur produk yang inovatif, yang selama ini justru
luput dari perhatian para pesaing. Fitur produk ini biasanya berbeda secara radikal dengan yang
selama ini sudah ada dan tersedia di pasar. Apa yang dilakukan oleh para pelaku di industri
kreatif dewasa ini adalah dengan menciptakan fitur produk inovatif yang berbeda secara radikal,
sehingga pemahaman akan konsep blue ocean strategy perlu dibekali bagi mereka. Beranjak dari
pola-pikir blue ocean strategy, pelaku bisnis didorong untuk memasuki sebuah arena pasar baru
yang secara potensial selama ini seolah diabaikan oleh para pesaing. Dalam pola-pikir
sebelumnya, yang oleh W Chan Kim dan rekannya disebut sebagai red ocean, suatu
kemampuan mengalahkan pesaing adalah hal terpenting, dimana kompetitor biasanya
memberikan tawaran fitur produk yang seragam, sama, dan semua saling memperebutkan pasar
yang juga sama. Maka mudah dibayangkan yang terjadi adalah pertarungan sengit, yaitu medan
persaingan diperebutkan oleh para pemain yang menawarkan keseragaman produk dan
pendekatan. Sebaliknya, blue ocean ditandai oleh ruang pasar yang belum terjelajahi, penciptaan
permintaan, dan peluang pertumbuhan yang sangat menguntungkan. Berkompetisi meraih
pangsa pasar yang berkontraksi sebagai fakta dunia bisnis mungkin masih perlu dilakukan,
namun tidak memadai untuk mendukung kinerja prima, maka kita harus melampaui kompetisi
untuk meraup laba dan kesempatan pertumbuhan baru, yaitu dengan menciptakan samudra biru

(blue ocean). Saat ketika ruang pasar semakin sesak, prospek akan laba dan pertumbuhan dapat
berkurang, dan produk pun telah bergeser menjadi komoditas.

Disruptive Technology: How Kodak Missed the Digital

Photography Revolution
Abstract
The purpose of this paper is to analyze how a firm responds to a challenge from a
transformational technology that poses a threat to its historical business model. We extend
Christensens theory of disruptive technologies to undertake this analysis. The paper makes two
contributions: the first is to extend theory and the second is to learn from the example of Kodaks
response to digital photography. Our extensions to existing theory include considerations of
organizational change, and the culture of the organization. Information technology has the
potential to transform industries through the creation of new digital products and services.
Kodaks middle managers, culture and rigid, bureaucratic structure hindered a fast response to
new technology which dramatically changed the process of capturing and sharing images. Film is
a physical, chemical product, and despite a succession of new CEOs, Kodaks middle managers
were unable to make a transition to think digitally. Kodak has experienced a nearly 80% decline
in its workforce, loss of market share, a tumbling stock price, and significant internal turmoil as a
result of its failure to take advantage of this new technology.