Walmart S Expansion In Africa P342
Case Study – Walmart’s Expansion in Africa
1. Detail the growth of Walmart and its international experience.
In Rogers, Arkansas, Walmart opened its first discount store in 1962. After that, Walmart’s business tended to be successful: Walmart operated 24 stores within 5 years and earned net sales of $12.6 million.(Bhaskaran) In order to meet the varied needs of its customers, Walmart run different retail store formats, namely Discount Stores, Supercenters, Neighborhood Markets, Marketside, and Sam’s club. (Bhaskaran) Walmart also set up kiosks to provide the information about details and locations of various products in the stores. In the 1990s, Walmart launched its website.
Then, Walmart focused on neighboring countries such as Mexico, Canada, Brazil, and Argentina. Walmart entered the international markets through joint venture, acquisition, or as a subsidiary company based on the market conditions. With the help of the popular retail chain Woolco, Walmart entered into the Canadian market in 1994. Then Walmart expanded its business in Brazil through a joint venture in 1995. In the same year, a wholly owned subsidiary was set up in Argentina. All of these business expansions are successful.
In 1996, Walmart ventured into another emerging market---- Asia. It cooperated with a Chinese retailer to set up stores in the Chinese market. Walmart had faced several obstacles like government’s restrictions on the number of stores to be operated by foreign retailers, language, culture, and customer shopping behaviors. To attract consumers, Walmart had to resort to changes in leadership (from American to Chinese) and implement other localized strategies. It still faced stiff competition from other big retailers.
During the late 1990s, Walmart also moved to the UK, Germany and Korea. It entered in Japanese market in 2002. However, Walmart failed in Germany, Japan, and Korea due to governmental policies and different consumer behaviors.
With rich experiences in the overseas
1. Detail the growth of Walmart and its international experience.
In Rogers, Arkansas, Walmart opened its first discount store in 1962. After that, Walmart’s business tended to be successful: Walmart operated 24 stores within 5 years and earned net sales of $12.6 million.(Bhaskaran) In order to meet the varied needs of its customers, Walmart run different retail store formats, namely Discount Stores, Supercenters, Neighborhood Markets, Marketside, and Sam’s club. (Bhaskaran) Walmart also set up kiosks to provide the information about details and locations of various products in the stores. In the 1990s, Walmart launched its website.
Then, Walmart focused on neighboring countries such as Mexico, Canada, Brazil, and Argentina. Walmart entered the international markets through joint venture, acquisition, or as a subsidiary company based on the market conditions. With the help of the popular retail chain Woolco, Walmart entered into the Canadian market in 1994. Then Walmart expanded its business in Brazil through a joint venture in 1995. In the same year, a wholly owned subsidiary was set up in Argentina. All of these business expansions are successful.
In 1996, Walmart ventured into another emerging market---- Asia. It cooperated with a Chinese retailer to set up stores in the Chinese market. Walmart had faced several obstacles like government’s restrictions on the number of stores to be operated by foreign retailers, language, culture, and customer shopping behaviors. To attract consumers, Walmart had to resort to changes in leadership (from American to Chinese) and implement other localized strategies. It still faced stiff competition from other big retailers.
During the late 1990s, Walmart also moved to the UK, Germany and Korea. It entered in Japanese market in 2002. However, Walmart failed in Germany, Japan, and Korea due to governmental policies and different consumer behaviors.
With rich experiences in the overseas
References: Maylie, Devon(2013,August 23). Wal-Mart to Grow In Sub-Saharan Africa. Wall Street Journal- Eastern Edition,262(46),pB4-B4.1/4p