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walmart

walmart

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Published by: sarbini1 on May 14, 2009
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11/06/2012

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Wal-Mart Stores, Inc.
 
 
Wal-Mart: Global Expansion Strategy
 _____________________________________________________________________  ______________________________________________________________________ 2
Table of Contents
A.
 
Introduction3B.
 
Wal-Mart Stores Inc.31.
 
The Adolescence of Wal-Mart32.
 
Channel of Distribution43.
 
The Financial Facts and Figures44.
 
Unique Expansion Strategy65.
 
Corporate and Management Culture6C.
 
The Competition in the United States7D.
 
Wal-Marts Global Strategy8E.
 
Expansion Target: France9General Overview9Retail Industry Overview9Macro Environmental Analysis9External Factors9Micro Environmental Analysis 12Porters Five Forces Model 12SWOT 14Feasibility Study 17Recommendation 18F.
 
Expansion Target: Israel 19General Overview 19Retail Industry Overview 20Macro Environmental Analysis 20External Factors 20Micro Environmental Analysis 25Porters Five Forces Model 25SWOT 27Feasibility Study 29Recommendation 29G.
 
Conclusion 32H.
 
References/Sources 34I.
 
Appendix in Book 2
 
 
Wal-Mart: Global Expansion Strategy
 _____________________________________________________________________  ______________________________________________________________________ 3
A.
 
Introduction
In the last couple of years, a number of major changes took place in the globalhemisphere. Countries, earlier committed to tight governmental control of theireconomies, have redirected their political concepts and initiated drastic reforms in orderto facilitate trade. The world has arrived in the global market place, at least in someterms. Not least because of new technologies like the Internet that is about to mark thebeginning of a new era of international business relations. The challenges an entity facesby forming a strategy to participate in 21
st
century’s global economy, that is, to becompetitive at a worldwide stage, are intriguing to discuss and shall be the objective of this paper. Both authors share the opinion that the world’s largest retail chain at present,the Wal-Mart Stores, will be a very interesting company to examine, since Wal-Martalready took a few steps, i.e. countries, towards its global appearance. To begin with, letus take a closer look at this famous company’s profile.
B.
 
Wal-Mart Stores Inc.
1.
 
The Adolescence of Wal-Mart 
: The company was founded in 1962 as a singleDiscount Store in Rogers, Arkansas, by a visionary and by the time legendary mannamed Sam Walton. Since then the chain had been growing at an unrivaled rate,starting with 9 stores and total sales of $ 1.4 million, now about to finish the fiscalyear 1998 with total sales of US $118 billion and 2,136 stores. The company consistsof discount stores, SAM’s Wholesale Club (introduced in 1983, Midwest City, OK),Wal-Mart Supercenters (1988, Washington, MO) and deep discount warehouseoutlets (Bud’s Discount City). Having written a unique success story in the history of retail industry, thanks to the rousing leadership of Sam Walton, the companyinternationally came off the ground by opening its first store abroad in Mexico City in1991. Since then Wal-Mart has extended its international presence to Puerto Rico(1992), Canada (1994), China (1996), Brazil (1995), Argentina (1995), South Korea(1996) and Germany (1998) (Wal-Mart History). Today Wal-Mart operates more than600 stores in international arena with a revenue of $7.5 billion [1].

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