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Walmart Takes On The World Solution

1156 words - 5 pages

Wal-Mart Takes On the World

Submitted To:
Dr. Kamal Uddin

Department of International Business
Course Name: Global Marketing

Submitted By:
Md. Khairul Anam
ID NO: 80104020

Md. Arafat Islam
ID NO: 80104070

Batch: 4th , EMBA,
Department of International Business

Department of International Business
University of Dhaka

Wal-Mart Takes On the World


1. In which 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, ...view middle of the document...

Where Wal-Mart has not used existing expertise (Germany), they have not been successful.

2. In what countries has Wal-Mart done poorly? Can you identify any common consumer market, retailer traits, or entry strategies across these countries that might account for Wal-Mart’s lack of success?


Germany, Japan, Brazil, and Argentina have not been good entries for Wal-Mart. In Germany and Japan, consumers are more demanding and more quality conscious. They seem to be less interested in the type of goods that Wal-Mart sells. In both locations, real estate and market conditions stymie Wal-Mart’s growth—whether this is unions or convoluted distribution systems. In both Japan and Germany, Wal-Mart bought existing chains with shabby stores and poor sales. Perhaps the lack of success of their acquired firms accounts for why Wal-Mart management did not utilize the expertise of those managers. Another possibility is that Wal-Mart had had such good success in Mexico and Canada that it was overconfident of its approach when it entered the German market. Since then, it seems to be more willing to listen to local partners.

In Brazil and Argentina, there are many factors against success—economic factors, real estate, and crowded cities demanding different store formats. Also, Wal-Mart found it hard to compete with Carrefour, which is the second largest discount chain in the world. Although Carrefour has some stores in Mexico, Wal-Mart had not previously entered a country where Carrefour was entrenched (it stays away from the German market) and is a formidable foe. So, in these markets, Wal-Mart encountered more competition than it had had anywhere else except in the United States.

3. In your opinion, will Wal-Mart be successful in Japan? Why or why not?


Japan will probably be like Germany. Wal-Mart would have to improve the quality of their assortment, possibly change store formats, and give themselves a more upscale look. They would also have to change their pricing strategy and promotional policies in order to cater to the Japanese consumer. Japan is difficult to market in because of their protectiveness of their markets and the closed nature of their distribution system (this is changing slowly). One thing that Wal-Mart has going for them is that they are American and the Japanese seem interested in American products. Retailers, however, in Japan have learned the hard way that they must adapt very, very carefully to the Japanese market. Given that Wal-Mart still...

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