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The paper aims to investigate the new market entry strategy of the international grocery retailers Aldi Süd and Costco in China; analyzing if and how their prior-online market entry reflects a strategic response to organizational challenges in the Chinese market, which is a pioneer in the use of digital technologies and the provision of digital services.

The article identifies major challenges faced by international grocery retailers in China and discusses these with the help of the conceptual approach of embeddedness. The paper is based on expert interviews with senior executives of the two international retailers and other retail specialists and consultants.

The prior-online market entry by Aldi Süd and Costco represents a strategic response to organizational challenges that have to be faced in an increasingly challenging and highly digitalized Chinese market. Prior-online market entry allows the two retailers to experiment with the unique and heterogeneous Chinese market and build network and territorial embeddedness to facilitate the establishment of the physical store network. Both retailers utilize online stores to build relation and network with suppliers and customers and to understand Chinese consumer preferences. Yet, the localization strategy of Aldi Süd and Costco vary greatly.

Grocery retailers' prior-online expansion strategy has not yet been the focus of academic research. In regard to global grocery retailers, such as Aldi Süd and Costco, previous research argued that they were prepared to accept a lower expansion speed in order to expand at minimum risk and cost and mainly in countries which are regarded as having higher cultural proximity. The paper reveals the potential of the prior-online market entry strategy to change the internationalization behavior of grocery retailers. In addition, it contributes to the understanding of the evolution of market entry strategy into advanced digital economies in the coming new decade.

This case will enable students to understand the operations and business model of an international retailer. The case offers enough insights and learning on a retailer who enters a different market and collaborates with the local players to gain market access; and to understand the marketing techniques and strategies of an international retailer to capitalise on market opportunities.

The case is about a third largest US-based multinational Costco Wholesale corporation which is a giant retailer. The company operated at 803 locations with a revenue of $166.7bn, which makes it the third largest global retailer in 2020. The case offers comprehensive insight into Costco Wholesale’s business model, distribution strategy, marketing techniques and internationalisation. The authors further discuss that how Costco put forth its model among different range of customers and provided them with high-quality products at a comparatively lower price. The focus of the case is towards the Asian expansion of Costco. In subsequent parts, the strategies and challenges of Costco with respect to its Asian competitors have also been discussed. After generating experience in Asian markets, Costco has considered China as its next destination. The case also discusses the foreign retailers’ success, failure and retail format.

This case is designed for undergraduate and postgraduate classes of management and business administration.

Teaching notes are available for educators only.

CSS 8: Marketing.

Social media analytics uses data mining platforms, tools and analytics techniques to collect, monitor and analyze massive amounts of social media data to extract useful patterns, gain insight into market requirements and enhance business intelligence. The purpose of this paper is to propose a framework for social media competitive intelligence to enhance business value and market intelligence.

The authors conducted a case study to collect and analyze a data set with nearly half million tweets related to two largest retail chains in the world: Walmart and Costco in the past three months during December 1, 2014-February 28, 2015.

The results of the case study revealed the value of analyzing social media mentions and conducting sentiment analysis and comparison on individual product level. In addition to analyzing the social media data-at-rest, the proposed framework and the case study results also indicate that there is a strong need for creating a social media data application that can conduct real-time social media competitive intelligence for social media data-in-motion.

So far there is little research to guide businesses for social media competitive intelligence. This paper proposes a novel framework for social media competitive intelligence to illustrate how organizations can leverage social media analytics to enhance business value through a case study.

The purpose of this paper is to present the experiences and findings of a university course in workplace spirituality in a time and stage where corporate greed and organizational instability run rampant.

The authors analyzed workshop dialogues and reviewed of participants' findings on corporations as well as their own changed perceptions.

There are some interesting common factors in corporations that perform according to spiritual guidelines and a highly interactive program on organizational analysis contributes tremendously to the levels of responsibility and awareness of participants.

Limitations to the research are: the population used for data was limited, as it consisted of business and management students at the MBA level; and the findings were only gathered from one cohort, and might provide increased themes when extended over multiple courses in multiple semesters. Future research could apply this study on other populations for a greater foundation in findings.

Organizations that adhere to the spiritual mindset are more successful, have happier employees, and are more aware of their environmental responsibilities.

The paper shows that in these times when corporate greed, dishonesty, and environmental neglect have been exposed so dramatically, courses on workplace spirituality are of high importance and lead to valuable insights for immediate and non‐immediate stakeholders.

The purpose of this paper is to critically examine the underlying reasons for the recent slow‐down in the rate of sales growth for the world's largest retailer, its implications for the economic valuation of this enterprise, and its future as a cohesive organization.

Wal‐Mart's comparative or same store sales growth over the last five years are contrasted with two of its key rivals Target and Costco, and the source and momentum of its core US growth record are examined over the last decade.

The results of the investigation indicate that Wal‐Mart has entered a new phase in its evolution as an enterprise, and the future rates of its growth will be limited to 3‐4 percent per annum in comp, and 10‐12 percent in total sales, excluding any acquisitions. This “new normal” is in part due to the extreme market share of Wal‐Mart in many of its trading areas, and the changing competitive landscape that was in no small part “created” in reaction to Wal‐Mart's own market power.

The analysis and its conclusions are of interest to retailing students and scholars who have been following the Wal‐Mart enterprise throughout the years, as well as retailing and merchandising analysts who have been struggling to define a new valuation model for the world's largest retail company. The paper is also of interest to retail market strategist as it illustrates that there are potential and natural limits to growth in all competitive arenas, and sources of new growth will always have to be sought in new product‐market spaces.

In describing his success, Sinegal attributes it to “just good business practices.” And while he was born into a Catholic family and supports Catholic causes, he does not necessarily tie his faith to the way he approaches business. That approach, he says, is based in learning how to do business with integrity and high values from an early mentor. The following interview outlines how Sinegal approaches business and how he works to establish integrity and high values throughout Costco Wholesale Corporation.

Many investors view maximizing shareholder wealth as the only obvious and defensible, corporate objective function. But to contradict this view, the paper aims to consider the shortcomings of the “shareholder first” view and offer an alternative.

To make strategic tradeoffs effectively the whole organization needs a clear sense of what it is trying to achieve, and how choosing between specified alternatives serves its highest goal. Organizations need a “best metric” for the corporate strategy. The paper considers what ultimate end should corporations – that is, the managers who run them – refer to when making these difficult and sometimes painful tradeoffs?

The widely held shareholder‐value view holds that every choice should be made with an eye to creating as much financial wealth as possible for the providers of equity capital. But none of the familiar justifications for this view stand up to scrutiny. It is not true that: shareholders are owners; shareholders bear the most risk; maximizing shareholder value is a clear goal; and maximizing shareholder value is a legal requirement.

The corporation‐first view is a better alternative principle. It is that the ultimate purpose of the corporation is the survival of corporation itself. The corporation should not seek to maximize the interests of shareholders, or employees, or suppliers, or the environment, or anyone or anything else. The Costco model is examined.

This paper provokes some serious soul‐searching about the largely unquestioned primacy of shareholder interests as the objective function of the corporation and makes the case for a better alternative.

The purpose of this paper is to create a strategy for “Best Buy”, a major consumer electronics and appliance retailer in the USA, to improve their service system to ensure that they can continuously gain market share. This study will examine and analyze Best Buy's store service blueprint in comparison to its competitors' service blueprints. The study will then examine Best Buy Geek Squad's service blueprint and recommend improvements that can be implemented to provide higher quality service to Best Buy's customers.

A combination of design methods was used which included creating multiple service blueprints and implementing the Six Sigma DMAIC approach. A Service Quality (SERVQUAL) Survey was conducted and analyzed the data, to give an understanding of customer satisfaction with the service provided at Best Buy, compared to its major competitors. The service blueprint was analyzed and strategies were recommended to improve the present system, with the goal of providing better customer service and an improved shopping experience. With the recommendations an “improved service model” for Best Buy was created, along with fail safe mechanisms to ensure that service guarantees will be met.

In the Six Sigma DMAIC Process Improvement approach, poka‐yokes were implemented to improve the Best Buy service blueprint, which were identified through cause‐and‐effect diagrams that were created. By implementing the new service blueprint, along with the poka‐yokes, Best Buy will see a significant improvement in customer satisfaction.

Best Buy and other retail service providers should consider investing in adequate staffing of technically savvy and customer sensitive store associates and implement customer service training programs to improve their education relating specifically to the quality of service delivery to their customers.

This paper focuses on the business case for implementing Six Sigma tools to improve the service provided by retailers. This should lead to long‐term profitability and improved customer service.

US retailers do business in the largest and most affluent mass market in the world. However, they have reached a saturation point for some popular retail formats. US retailers are looking outside national borders for expansion opportunities. The Strategic International Retail Expansion (SIRE) model combines ideas presented in four separate theories to predict future expansion of these retailers.