MNGT 4100 International Management Case study - Walmart

MNGT 4100 International Management Case study - Walmart -...

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MNGT 4100 February 2013 Wal-Mart case 1. During the 1990s Wal-Mart exported its big-box, low-price model, an approach that was expected to be as successful in foreign markets as it was in the United States. After a lot of consideration Wal-Mart decided to concentrate on establishing a presence in the Americas. Wal-Mart chose Mexico as a first entry, because it’s one of the three largest populations in Latin America. The European market was less attractive for Wal-Mart, because their retail industry was already mature, and in order for Wal-Mart to take a market share away from an already existing player they would have had to put in a lot of effort. Europe already had three big competitions. Furthermore Wal-Mart’s lack of a local customer relationship also made Europe a much more difficult market to access. The growth rates in Latin America were higher than in Europe, which meant that delaying an entry into the Latin American market, would have been considered as a costly lost opportunity. Asia was of course a huge potential market, but it was also the one furthest away and with a culture very different from the American one. In the end Wal-Mart chose Mexico over Europe and Asia, for its geographical location and fast growth potential. 2. The problems that Wal-Mart faced in Germany was that they weren’t exactly in line with what the Germans were used to and far from what the customers preferred. Wal- Mart started out by acquiring a chain of stores, which turned out to be a mistake since the stores of the German retail chain were geographically unfavorable. One other
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  • Spring '13
  • rhiney
  • Management, Supermarket, wal-mart case, consideration Wal-Mart

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