Globalization of Wal-Mart - 1177 Words

Derek Moore 9/13/12 GEB3356, Omanwa Minicase: â€Å"The globalization of Walmart† As the world’s largest retail store in the world, Walmart wants to be in every market that they can be prosperous in. They know they rule the United States market, so why not try to expand overseas and dominate those markets as well. Now that they have reached limits on expansion here in the U.S., the next step was to test the water in other nations. As they began to go international, there were many critics saying they will never make it because their business practices and culture wouldn’t work in other countries. Yet the company’s globalization efforts progressed at a rapid pace. Its more than 4,263 international retail units employ more than 660,000†¦show more content†¦They changed their strategy to customer service and a broader merchandise mix than the smaller local stores could match. They have continued to grow and are now the third largest retailer in Brazil. Walmart faced strong entrenched competition in Canada and Europe. In these developed countries, they couldn’t gain critical mass through internal growth, so they had to acquire companies that have been in the market already. They acquired Woolco, a money losing operation, applied many of the American business practices, and within a few years, the Canadian operations were successful. They have 317 stores, and they account for more than 35 percent of the Canadian discount and department store market. In Europe, Walmart entered Germany by acquiring the Wertkauf hypermarket chain in 1998 and entered the UK by acquiring the 229-store ASDA group. They the leader and are now losing ground to Tesco. A major problem for Walmart in the European market is overexpansion. Accompanied with the famous â€Å"Always low prices† approach, they met large resistance from the competition and regulators. Large price wars began because Walmart was accused of underselling the competition. The y struggled to build a strong competitive base in German losing more than $1 billion. They were unable to create a competitive advantage, so they sold their operations to a competitor, Metro. They also faced problems in Korea, soShow MoreRelatedCross Culture Perspectives: Wal-Mart924 Words   |  4 PagesCultural Perspectives: Wal-Mart ETH/ 316 June 11, 2012 Laura Brodkey-Scott Cross Cultural Perspectives: Wal-Mart Introduction Wal-Mart is defined as the giant of retail and it is one of the largest companies in the world. It has grown to not only be a staple in America but internationally as well, touching base in countries such as Japan and China. It is a popular supercenter that is located worldwide. Wal-Mart is the largest retailerRead MoreWal Mart Stores, Inc.1730 Words   |  7 Pages 1. The organization chosen for this study is Wal-Mart Stores, Inc. Wal-Mart is an American multinational company that operates a chain of warehouse stores and departmental stores. 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