Sleep Well Motel
Chakara Davis
Company case: Wal-Mart Takes On the World
Section 1
Marketing 200
Introduction
Wal-Mart is the world’s largest retailer, however there are more than 6,500 stores worldwide. However, more than 70 percent of Wal-Mart merchandise comes from China although the bulk of sales come from the United States. Before opening Wal-Mart, Sam (owner) traveled the country studying everything he could about discount retailing. He became convinced American consumers wanted a new type of store. Trusting his vision, Sam and his wife Helen put up 95 percent of the money for the first Walmart store in Rogers, Ark. Moreover,
Discounters such as Kmart quickly expanded in the 1960s, while Sam only had enough money to build 15 Walmart stores. In 1972, Walmart stock was offered for the first time on the New York Stock Exchange. With this infusion of capital, our company grew to 276 stores in 11 states by the end of the decade. Today, Walmart International is a fast-growing part of Walmart's overall operations, with 4,573 stores and more than 730,000 associates in 14 countries outside the continental U.S. In fact, on November 29, Walmart confirmed an offer to acquire 51 percent of Massmart in South Africa.
Question for discussion
1. In what countries has Wal-Mart done well? Can you identify any common consumer, market retailer, or entry strategy traits across these countries that might account for Wal-Mart’s success?
Wal-Mart has done well in the United States, Canada, Mexico, Puerto Rico, Hong Kong, China, and England. The United States, Canada, Hong Kong, and England are rather well off markets. Meanwhile, Mexico is in-between and China and Brazil lag behind Mexico in prosperity. Therefore, Wal-Mart success might start with countries along with healthy economies. Healthy enough that customers have some disposable income. Another characteristic is that these markets may not be as demanding as the Germans and Japanese. Perhaps they are more interested in
Company case: Wal-Mart Takes On the World
Section 1
Marketing 200
Introduction
Wal-Mart is the world’s largest retailer, however there are more than 6,500 stores worldwide. However, more than 70 percent of Wal-Mart merchandise comes from China although the bulk of sales come from the United States. Before opening Wal-Mart, Sam (owner) traveled the country studying everything he could about discount retailing. He became convinced American consumers wanted a new type of store. Trusting his vision, Sam and his wife Helen put up 95 percent of the money for the first Walmart store in Rogers, Ark. Moreover,
Discounters such as Kmart quickly expanded in the 1960s, while Sam only had enough money to build 15 Walmart stores. In 1972, Walmart stock was offered for the first time on the New York Stock Exchange. With this infusion of capital, our company grew to 276 stores in 11 states by the end of the decade. Today, Walmart International is a fast-growing part of Walmart's overall operations, with 4,573 stores and more than 730,000 associates in 14 countries outside the continental U.S. In fact, on November 29, Walmart confirmed an offer to acquire 51 percent of Massmart in South Africa.
Question for discussion
1. In what countries has Wal-Mart done well? Can you identify any common consumer, market retailer, or entry strategy traits across these countries that might account for Wal-Mart’s success?
Wal-Mart has done well in the United States, Canada, Mexico, Puerto Rico, Hong Kong, China, and England. The United States, Canada, Hong Kong, and England are rather well off markets. Meanwhile, Mexico is in-between and China and Brazil lag behind Mexico in prosperity. Therefore, Wal-Mart success might start with countries along with healthy economies. Healthy enough that customers have some disposable income. Another characteristic is that these markets may not be as demanding as the Germans and Japanese. Perhaps they are more interested in