Studies On Core Competition In Global Retailing Supply Chain

With the global economy developing to an orientation of regional integration, especially with the development of science and technology, the fast development and application of Internet and the coming of the society of information since the 90s of the 20 century, the pace of economic globalization has been greatly expedited. In the global economical environment and with China entering WTO, the strategy of globalization has become one of the most important strategies for various governments and enterprises to seize the international market, and the tendency of economic globalization has been increasingly strengthened. Under the background of economic globalization, the supply chain management has developed into the management of global supply chain. The global supply chain is a congregation of enterprises (international enterprises) in a business relationship of supply. Different enterprises have different cultural background. If there is not a common recognized cultural basis, the different cultures might conflict and clash one and another, which could effect the efficiency and effectiveness of the supply chain management. The objective of this paper is to discuss the important influence of retailing culture on constructing the core competition of retailing enterprises under the condition of globalization of retailing supply chain.First, retailing culture has the important characteristics of core competition. As the unique information technology, the operation management and the channel of buying or marketing ability, core competition is a unique capability which can not be imitated. Once the unique enterprise culture is formed, it is difficult to be imitated by other competitors and enterprises, thus it determines that retailing culture has the characteristics of core competition. Retailing culture can improve employee's enthusiasm and creativity internally, and can enhance the brand image of the enterprise externally. There won't be core competition if there isn't unique and excellent retailing culture.Second, under the economic globalization, the international operation of international retailing enterprises is increasingly prevailing. What retailing enterprises should face in overseas operation is a multi-national and multi-cultural social environment, and the intercultural difference is the background for retailing enterprises to develop their intercultural management. According to different cultural types in various countries, the strategies which can be adopted in intercultural management are: localization, intercultural training, cultural compatibility, cultural innovation and cultural borrowing. Intercultural difference will influence the core competition of international retailing enterprises. To maintain the core competition, international enterprises should recognize the existence of cultural difference, manage the cultural difference, harmonize the relationship with suppliers and customers, regulate behavior and value of the members in sales channel by using its own culture so as to effectively relax and avoid conflict in sales channel.Third, the retailing supply chain is a netting cooperation alliance connecting suppliers, manufacturers, shippers and retailers. The cultural difference among enterprises determines the necessity of cultural communication, even cultural conflict in supply chain. Emphasizing cultural penetration and integration plays an important role in improving the performance of the whole supply chain. This paper put forth 3 models of cultural integration: cultural assimilation, cultural innovation and cultural reservation. To treat the cultural difference in the intercultural retailing supply chain, international retailers can adopt different brand strategies, employee management strategies and different retailing strategies according to different regulations in various countries to improve the performance of supply chain.Finally, the relationship between retailing culture and core competition is discussed in this paper. A case study is based on Wal-Mart's culture, the viewpoint that retailing culture is the core competition of retailing enterprises is demonstrated in this paper. The influences of successful culture on the core competition of retailing enterprises mainly manifested in the following aspects: 1. Help enhance the enterprise's image; 2. Strengthen the coherence of retailing enterprises and cultivating team spirit; 3. Help strengthen the learning and innovation ability of retailing enterprises.With our Country entering WTO, it's easier for foreign enterprises to enter Chinese retailing market. The globalization degree of internal competition in China becomes more intense and incandesced. Moreover, this paper gives a rough discussion about how to foster enterprise culture, construct core competition and how to adapt to different cultures in the international operation for Chinese retailing enterprises.