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assimilation has been made in order to meet Walmart’s expectations, such markets could be extremely profitable from the African continent—further solidifying Walmart’s position as the world’s largest retailer. So one pro of adapting its business model to better suit local conditions inAfrica would be that Walmart has secured its position in a new geographical area with possibility
Walmart Casefor continuous expansion across the continent. While a con of the adaption could be the political instability throughout certain regions of the same continent.#7. How would you advise the company to proceed with implementing its entry into Africa?What options does Wal-Mart have on the table, and what options should be chosen?Upon implementation into the African markets, I would advise that we study the businessmodels of the top three largest retail manufacturers on that continent in order to compare their differences, as well as, a comparative analysis against Walmart’s business model. Since the acquisition of a majority stake in MassMart Holdings Ltd., has already happened, I would advise not changing any of the MassMart’s brand names because they are already a familiar brand names across certain regions in the continent. I would also advise setting up some sort of agreement that MassMart employees would have preference when hiring for the new stores and their employment should be guaranteed, as a result of the acquisition, for a specified number of years. I would also recommend that we [Walmart] implemented an incentive program to assist the local farmers produce quality food for the supermarkets. I then would discuss options that wehad in order to satisfy local trade unions to keep the idea of unionizing any of our labor force. The same business model that is used in the U.S. cannot be used in Africa—simply because the economic conditions are poorer, the political climate is different, therefore, laws and taxes are different. I would definitely weigh all of the pros and cons of operating business in Africa, but ultimately, it is a market that Walmart must dominate! (That’s what my “pitch” would be.)
Walmart CaseWalmart has several options on the table, as far as this expansion into Africa goes. They could continue operating under the MassMart brand name, just with Walmart executives calling the shots, as it has been since 2011. Or it could try to use business models from other international markets, but I don’t think that would prove to be successful because each international Walmart store is “tailored” to its geographical market. Instead of analyzing different international markets to see what worked for that specific market, analysts should check international markets to see which business model was unsuccessful and then take note as to what not to do. Another option would be to not expand into the African markets completely. I don’t think that option would be given much consideration because if it’s already a successful business model being implemented