Wall Mart Gobal Strategy Essay

931 words - 4 pages

In 1991 Wal-Mart decided to expand globally due to the fact that Wal-Mart started to face bounds to growth in its domestic market and literally has been forced to quest for international opportunities. According to David Glass Wal-Mart CEO instead of waiting for companies to start to come to the US market and increase the competitive pressure at home, expanding internationally will assist in safeguarding Wal-Mart domestic position dominance. Specifically, international expansion will keep prospective competitors in their home markets rather than to quest the US market.
Mexico was the focus of Wal-Mart first expansion effort for a number of reasons. First, it was geographically interesting ...view middle of the document...

Wal-mart bought out Cifra, and in 2000 changed its name to Wal-Mart de Mexico.

When Wal-Mart decided to go global early 1990’s, Wal-Mart concentrated on Canada and Latin America. It started with Mexico in 1991 through a 50-50 joint venture with Cifra, and in 1994 Wal-Mart entered the Canadian market via acquiring 122 Woolco Stored form Woolworth. Wal-Mart decision to enter Argentina and Brazil was based on high growth rates of the Latin American markets. On May 9, 1994 Wal-Mart decided to invest heavily in Brazil, through a partnership with Lojas Americanas, Brazil’s leading department store chain whereas Wal-Mart will own a controlling 60% of the Brazilian joint venture. In Argentina, however, Wal-Mart decided to go alone.

The success of Wal-Mart in Canada and Latin America was due to a number of reasons. Firstly, Wal-Mart entered Canada 1994 the same year as NAFTA the North American Free Trade Agreement (NAFTA) which made it easier for US companies to enter these markets. Secondly, Canada and America share the same borders as result consumers were already acquainted with Wal-Mart; consequently they share the same cultural markets. Wal –Mart already had brand awareness and by carrying everyday low prices to the marketplace, brand acceptance and consumer loyalty will flow logically. Thirdly, from the very beginning, Wal-Mart changed the product mix that it carried in its Canadian stores; hockey equipment was prominently featured in stores. In addition, to cater to the to the large Muslim community in Toronto, Wal-Mart carried “hallal” foods. Through applying such business strategies and practices Wal-Mart operations in Canada became profitable after two years. In Latin America Wal-Mart succeeded because the emphasis was on customer service and...

Other Papers Like Wall Mart Gobal Strategy

Walmart Essay

2525 words - 11 pages , Wal-Mart had nine different retail formats for its businesses: restaurants, cash-and-carry stores, membership warehouse clubs, apparel stores, soft discount stores, bodegas (small markets), supercenters, food and drug stores, and general merchandise stores.Global Strategy, Local FocusWith the opening of a Sam's Club near Mexico City in 1991, Wal-Mart turned into an international company. Within two years, perceiving the growing number of

International Business Practice Essay

3957 words - 16 pages one of the most efficient distribution systems in the world, and was one of the first companies to promote widespread stock ownership among employees. These practices led to high productivity that enabled Wal-Mart to drive down its operating costs, which it passed on to customers in the form of everyday low prices, a strategy that enabled the company to gain market share first in general merchandising, where it now dominates and later in food

Wal-Mart and It's Organizational Behavior Issues

3009 words - 13 pages operates. (Davis, 1993) It is important for Wal-Mart to understand their employees’ job satisfaction, fairness, personal development and growth within its organization. Wal-Mart was founded by Sam Walton in 1962. Sam Walton business strategy was to supply products for customers at low prices. Sam Walton began the first Wal-Mart store in Rogers, Ark. While Wal-Mart was at their beginning stage their competitor Kmart was growing rapidly. During

Flexible Scheduling Good or Bad for Employees

2971 words - 12 pages helpful. For instance, flexible scheduling can allow two parents to share a job, or allow women with young children schedule that fits in with raising children. No legal battles over computerized scheduling appear imminent, so interpreting whether Wal-Mart’s strategy equals treating its labor force as a commodity will have to wait. In the meantime, Wal-Mart is once again at the forefront of technology trends in its industry. Ann Taylor

Managing Organization

989 words - 4 pages business models. A lot of example has shown by applying on either concepts may increase the company revenue for example like Wall Mart, Facebook, My space etc. So, the best way to be a prosper company is by applying both concepts and at the same time all level of management to have their own set of strategies.

RETAILS INDUSTRY

3416 words - 14 pages share. In 2006, Walmart announced its withdrawal from Germany. Its stores were sold to German company Metro. After entered into the South Korean Market in 1998, Walmart withdrew and sold all 16 of its South Korea outlets to Shinsegae, a legal retailer, for $882 million (Patrick Hayden, 2002). Shinsegae re-branded the Walmart as the E-Mart stores. Strategy • Business-level Strategy Walmart uses a combination strategy of cost leadership and

Capstone Assignment 4

1350 words - 6 pages Assignment #4 Me’Shaw A. Taylor HwangJi Lu BUS499 8/24/12 For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion. The merger I choose to research was the acquisition of Pixar by Disney. The merger between Disney and

Marketing Management

4683 words - 19 pages simple goal: Offer low prices to everyone. His notions of hard work and thrift continue to permeate Wal-Mart today, although he died in 1992. Employees see their jobs as a mission ‘’to lower the world’s cost of living.’’ Wall –Mart’s philosophy is to enable people of average means to buy more of the same products that were previously available only to rich folks. The company works hard at being efficient and using its buying clout to extract lower

Case Study

1336 words - 6 pages in the factory wall and sold them out on the street (the first drive-through). Over the next few decades, Rudolph opened other stores—some his, some franchised—in north and South Carolina, and a regional chain was started. Rudolph soon chose the red, white, and green colors as well as the wide scripted logos and the “walking KK” letters. As for the name, it simply came on the recipe from the French chef. Rudolph died in 1973, and Beatrice, the

Gsl Index

1396 words - 6 pages Market development resources (sources of info, issues, confectionary example, Wall Mart) 35 Things to consider when entering a market (entry process) 36 Researching and selecting new geographic market (six key indicators, doing Business Survey) 37 Timing of entry, key success factors for new market development 37-38 Dunning’s conditions, 38-45 Accounting issues (foreign exchange risks, preparing multiple sets of account, incompatible IT

Cvs to Buy Target’s Pharmacy Business

929 words - 4 pages Gege ShiSummer 2015 | PMBA-8365 International Marketing Management Term Project Article 2 Dr. Ashmen CVS to Buy Target’s Pharmacy Business Abstract In this article, the author mainly focused and analyzed one journal “CVS to Buy Target’s Pharmacy Business for $1.9 Billion; Deal includes about 1,700 pharmacies within Target stores” from the Wall Street Journal. At the beginning, the author briefly summarized this essay; then

Related Essays

Management Theory, Practice, And Application Essay

1241 words - 5 pages Organizing Paper University of Phoenix Management Theory, Practice, and Application MGT-330 May 17, 2010 Organizing Paper How a corporation organizes itself may be the most essential part in determining if their strategy will be successful (Bateman & Snell, 2009). Through organizing Wall-Mart top-level managers develop the plan laying out tasks and resources that are needed to accomplish the goal. By recognizes the value of

Wal Mart's Globalization Efforts Essay

1652 words - 7 pages ;walmartstores.com/download/1997.pdf>. Bustillo, Miguel. "After Early Errors, Wal-Mart Thinks Locally to Act Globally." The Wall Street Journal. Mahajan-Bansal, Neelima. "Wal-Mart's Strategy through the World." 20 October 2009. Business. 15 September 2011 <http://business.in.com/printcontent6042>. Rowell, Andy. Welcome to Wal-World. October 2003. 16 September 2011 <http://www.thirdworldtraveler.com/Corporations/Welcome_Wal_World.html>. SANG

The Marketing Environment: Wal Mart Corporation Essay

1666 words - 7 pages base. On September 7, 2006, the Wall Street Journal reported that Wal-mart was modifying its US stores from a one-size-fits-all strategy to a custom fitting merchandise assortment designed to reflect each of the six demographic groups. Even plans to target on gay and lesbian customers. Basically, why turn focus to one particular group! Wal-Mart has the size to focus on all groups of people and there different interests and needs.2 Natural

Wal Mart Strategy Essay

3721 words - 15 pages Source: Wall Street Journal Wal-Mart stores, the world?s largest retailer plan to open 10 Computer Doctor Centers in its stores. The Computer Doctor Center, aimed directly at stores such as radio Shack and CompUSA, will repair computer and install software. Selling computer is not a new activity in Wal-Mart. It does in its 1,400 o its about 3000 U.S. year round. The first 10 opened Computer Doctor Center is like a test for Wal-Mart to see how