Wal-Mart’s 1 WAL-MART’S PROBLEMS IN

Wal-Mart’s Problems in International Market Patiporn Kitlertphiroj University College of University of Denver

Wal-Mart’s 2 Abstract Wal-Mart, the biggest retailer in the world, is spreading its power throughout the world, starting with nine countries in Asia, Europe and South America. The

expansion has planed for more in the near future. With its attempt to penetrate hypermarket culture in every country which it enters, many severe problems are come into play. Acquisitions and joint venture with local businesses became a problem in nationalism country. Thus, strict governments’ rules and regulations blocked business operations. Misreading competitors and late in entry destroyed location opportunities the same as harmed relationship with local suppliers. Inadaptable to local culture become a big problem in global business. Moreover, low wages, unions and sex discrimination brought Wal-Mart to be an evil in employees’ perspective.

The three basic belief and two keys rules that differentiated Wal-Mart from the rivals were proposed in “The Wal-Mart Culture” (2004). 2001 describe the reason why Wal-Mart expand its intensity to international market. 2003). Wal around…. 2001). 2004. 1998 and Menzer. In addition. 1998. However. Anderson. expansion through world market does not seem easy to Wal-Mart. 2001). many references illustrate various problems and causes Wal-Mart faced while expanding into International market. it also faced some problems both from external and internal. The company believes that one day this one will replace the United States position when the trend down (Molin. Gilman.Wal-Mart’s 3 Literature Review Wal-Mart is the largest Discount Store in the United States. Being number one in the United States does not always guarantee for being number one elsewhere in the world. With this goal Wal-mart is encouraged to expanding stores into nine countries around the world and more in its plans (About Wal-Mart. 2004). Finally. Lohr. other sources state that culture difference is another problem that Wal-Mart was overlooked (Lewis. 1994). it fails to make connection with local suppliers (Bianco & Zellner. 2004). There are many problems that Wal-Mart is now facing in this highly competitive business world. Wal- . Another reference states that it was misreading the competitors (Molin. 2003. Its magnitude is not only recognized domestically but also expanded to International Market. 2002. Even though Wal-Mart has close relationships with American suppliers. They believe that in the future this division will replace the US market. Jones. Sources tend to agree that Wal-Mart itself has less consideration in international market when compare with competitors (Groeber.

Although some source states that one of the biggest problems of Wal-Mart is Human Resource Management (HRM) (Biddle. 2001). Both Groeber (2002) and Molin (2004) agree that these restrict regulations lead monopoly market in some countries. 2004). Another external factor that comes into play is government regulations. As a result of private consideration in expanding hypermarket culture into international markets. Gilman (2004) and Zellner.Wal-Mart’s 4 Mart tired to use the same standard and concept as in United States but unfortunately one concept does not fit all. et al. which causes severe problems to Wal-Mart in the global Market. sex discrimination is the most controversy topic not only in the United States but also in the international market as well (Rock. Wal-Mart faces management problems as well as external problems. . Schmidt. Moreover. (2001) agree that Wal-Mart is too concentrated in expanding their concept.

Globalization is about worldwide economic activity . While it expanded into international markets.about open markets. . capital and knowledge. local companies enter global ones. global computers. These advances have allowed business corporations to widen substantially both their markets and their supplier sources. it also increased consumer choice. Environmental deterioration presents many opportunities for companies that can create more effective means of protecting or cleaning up the environment. and world televisions satellite broadcasting and most important the internet. As global companies enter local markets. Consumers everywhere are the big winners from the globalization process. The resulting competition increases product quality. Globalization actually creates more diversity. people refer to Globalization. Low labor skills challenge educational and training companies to design more effective programs for upgrading human skill. transportation.Wal-Mart’s 5 Introduction The world economy has undergone a radical transformation in the last two decades. The good news is that the globalization means a much larger market for goods and services. making products and services universally available. and keeps prices low. not less. The bad news is that these companies now face a greater number of competitors. Infrastructure neglect provides huge opportunities for companies in the construction. and communication industries. Economic stagnation favors companies that are good at lean production and lean marketing. Geographical and cultural distances have shrunk significantly with the advent of airplanes. widens the range of available goods. fax machines. In the business world today. services. competition and the free flow of goods. It has made the world economy more efficient.

2003). Korea. is the largest retailer in the world. 1. McLane Company. It is now has more than 4. With net income of approximately US$8 billion on sales of US$247 billion (“Income Statement”. Company Background Wal-Mart Stores. Supercenters. The use of new information technology enabled Wal-Mart to know what customers were buying and to tell manufactures what to produce and where to ship the goods.750 combination discount and grocery stores and 538 membership-only warehouse stores (SAM’S CLUB) (Bianco..475 discount stores. Inc. is a national discount department store chain operating primarily in small towns throughout the United States. Brazil. The Wal-Mart Stores segment includes its discount stores. but Wal-Mart is expanding internationally. . Nearly 75% of its stores are in the United States (“Wal-Mart International Operations”. Puerto Rico. Europe. The Sam’s club segment includes the warehouse membership clubs in the United States. WalMart Stores. and Neighborhood Markets in the United States. 2004). Canada. 2004). and South America which are comprised of Argentina. Inc. Wal-Mart was the subject of countless newspaper features and journal articles praising its dominance and success. The Company's subsidiary. Germany. Japan. Mexico. The Company's mass merchandising operations serve its customers primarily through the operation of three segments. Inc. China. the world’s second-largest company after Exxonmobil and the nation’s largest nongovernmental employer. provides products and distribution services to retail industry and institutional foodservice customers. and United Kingdom (“About Wal-Mart” 2004). Inc. The International segment includes all of its operations in Asia.Wal-Mart’s 6 Wal-Mart Stores.700 stores including some 1. operates retail stores in various retailing formats in all 50 states in the United States.

the operation profit increased fifty five percent from the year 2002. Moreover. Moreover. Wal-Mart good concept also involved stores offering customers a variety of name-brand goods at deep discounts that were part of an everyday-low-prices strategy. This division is one of the high growth rate departments in the company. there were two key rules that supported these three basic beliefs: the Sundown Rule (attending to requests the same day they were received).striving to be the most friendly. service to customers.Wal-Mart’s 7 Organizational Culture Wal-Mart satisfy itself on its strong culture. 2004). giving better service over what customers expected. and the Ten-foot Rule (offering greetings whenever one was within 10 feet of a customer) (“The Wal-Mart Culture”. In addition. This division is believed that if trend in the United . This Walton’s philosophy leads Wal-Mart different from the rivals with aggressive hospitality . and strive for excellence. Walton had three basic beliefs on which the company was build which are respect for the individual. with various references to Sam Walton’s personal life story. Wal-Mart said in financial report (2003) that sales of International Division had reached more than forty billion dollar and growth rate was more than fifteen percent compare to the previous year. 2004). Wal-Mart public information showed that its customer-focused culture shoot from the company’s pursuit of low prices products and authentic customer service. International Penetration Another vehicle for company growth was aggressive international expansion. and generally exceeding customers’ expectations. the history of the company and how Walton’s personal values become core beliefs for the company. The International Division was sat up to manage oversee growing opportunities (“About Wal-Mart”.

three months after Brazil. This created Mexico became the first member of the International division in 1991.A. Minas Gerais. joint venture or buy local companies also the strategies that it uses in order to expand into each country. Today. This year it will acquire Bompreco. A. Wal-Mart Argentina began in august 1995. Nine years after that Wal-Mart Brazil is present in four states – Sao Paulo. WalMart runs into 11 supercenters and one distribution center. this international market will be replaced that position. John Menzer. president and CEO of the International Division says that “We need to be the growth of Wal-Mart some day when the United States slows down” (as cited in Molin. Wal-Mart has expanded its store throughout global market. operations in Puerto Rico was started with the opening a Wal-Mart store in Fajardo. de C. 2004). The acquisition of Woolco in 1994 brought Wal-Mart to Canada which is now present in 231 discount department stores and 5 Sam’s Clubs. Not all stores are newly established by Wal-Mart itself. a leading supermarket and hypermarket chain in northeastern Brazil. There are almost a thousand stores in nine countries around the world. China was the first country in Asia that Wal- . Rio de Janeiro and Parana.Wal-Mart’s 8 States goes down in one day. It started with the opening of a Sam’s Club in Avellaneda. The next stop of South America operation was at Argentina. in order to make connection with local suppliers on the island. Within thirteen years in International Market.V. The operation began in May 1995 when a San’s Club opened in metropolitan area of Sao Paulo.. a local supermarket chain. Mexico’s largest retailer. Store opening in Brazil confirm expanding plan of Wal-Mart to South America market. In 2002. In the mid-1990sWal-Mart started introducing its designation to the world by joint venture with Cifra. In June of 1992. Wal-Mart acquired Supermercados Amigo.

The latest place outside U. The company expanded by acquisition and conversion Makro stores. The expansion in number of store is a continuous plan of Wal-Mart. Accordingly. market that Wal-Mart entered was Japan. one of Japan’s top retailers. One month later. which opened in July 1999. 2004).Wal-Mart’s 9 Mart choose to enlarge its market share.8% of its stock was hold by Wal-Mart and it was planed to retain the option up to nearly 67% by year 2007(“Wal-Mart Stores. Britain’s best value retailer. The first time for Wal-Mart to have name appeared on a UK store which is ASDA-Wal-Mart Supercenter (“Wal-Mart Inter…”. top management had consistently informed the press of the importance of Wal-Mart expansion plans in foreign markets indication that between one third to half of its growth in the following years should come from outside the saturated US market .S. ASDA. the company also established its first new construction project in Seoul. 2004). Later in that year..”. another German hypermarket chain. Wal-Mart operates the total 92 supercenters in Germany. 2002. Wal-Mart had first entry in Europe market with the acquisition of Wertkauf hypermarkets in Germany. Groeber proved to be the best location for WalMart’s investment” (2002). Korea became a member of Wal-Mart international operation. became part of the Wal-Mart family. It has invested in modifying these stores since then and now. In March. And in the year 2000. Wal-Mart also acquired Interspar. a discount store chain. Ltd. 37. Inc. Wal-Mart website claimed that “As a harbinger if China’s economic reform and the fastest growing coastal city in China. Later that same year. The Company gained a minority interest of The Seiyu. Moreover. Today. In January 1998. It was first enter in August 1996 with the opening of supercenter and Sam’s Club in Shenzhen (“Wal-Mart Inter…” 2004).

and the international will be the growth vehicle for the company. 2001 that The United States is 37% of the world’s economy. Menzer confirmed with Business Week in September 3. WalMart. The company believes that there is no choice but to expand rapidly abroad. customer service. wide variety of goods. therefore. which leaves 63% for International. If we do our job. This plan is based on low price strategy. but that is the opportunity in front of us.S. will slow down. offering for convenience-oriented customers. International operations should someday be twice as large as the United States. effective information systems and efficient supply chain logistics. Problems in expansion to International Market The larger Supercenter hypermarkets put in fresh foods. This standardization of format types has helped the expansion and branding of Wal-Mart in international as well as U. The Neighbourhood Market stores supply a smaller food. close vender relations. (p. The overseas expansion of Wal-Mart. pharmacy. the number one retailer in the world. Indeed. Wal-Mart can play with low price strategy because of its competitive gross margins and high inventory turnover.S. was seen as part of a long-term strategy of becoming a dominant force in international retailing. improve quality. The rapid rise of Wal-Mart to the position of the World’s largest retailer occurred in a relatively short time frame. That’s a big challenge. health and beauty. purchasing power. would not have been possible to expand its market without a strong retail proposition. and community support. The concept works on the global and regional level with the goal being to lower costs.15). Someday the U. Low costs are achieved by economies of scale. markets. lower prices and increase volume.Wal-Mart’s 10 (Jones. . 1998).

Carrefour. a giant France’s retailer. Many European retailers such as Carrefour and Ahold have a couple of decades more international experience than Wal-Mart. sex discrimination.9 percent of its 1999 sales came from international markets.Wal-Mart’s 11 As of this consideration. This proportion is considerably less than its competitors which have sales of 30 percent (Groeber. Employees’ low payment. External Problems Late Entry Even though Wal-Mart already expanded into nine countries and has planed for more. Wal-Mart’s growth was achieved primarily in its US home market and only 8. it is still much behind its competitors. restriction in suppliers. And we had a joint venture going in Mexico. and small business destroyer are the example reasons that make WalMart be an evil in retailer business. Furthermore. is one of Wal-Mart main competitor in Global retailers. Along with this misstep in oversea operation. 2002). Wal-Mart might well be both America’s most admired and most hated company.” However. Wal-Mart definitely increases the overall GDP of the United States. Wal-Mart did not give much significant to International division when compare to its competitors. but its monopoly also detestation. But it seems that Wal-Mart does not recognize this. it was later destroyed and brought big problems to Wal-Mart itself. We also bought Pace (wholesales clubs) from Kmart.… We got through that in about six months. Wal-Mart use the short cut of expansion by joint venture and acquisition the local retailer chains. it still using the same way of doing business in the global market. Menzer also confirm this idea in Gilman (2004) that “We just had too much on our plate at the time… So we bought Woolworth in Canada. Wal-Mart had . While Carrefour had already entered in 31 countries.

Wal-Mart accustomed to enjoy its power in the United States. Overlook Competitors Wal-Mart should realize that it is new in globalization. Large scale of stores was brought to judge its intensity. and it wants everyone to know.Wal-Mart’s 12 only nine (Wal around…. It is number one. in contrast. In some countries. This phenomenon is not happening only in the United States. after all. it strongly believes in its strength which is size and prices. Destroy Small Businesses When Wal-Mart is the world's largest retailer. Molin (2004) reported that misreading of the competitors and the cultures lead Wal-Mart made numerous bad decisions in international business. Some research said that after Wal-Mart has been in town for eight to ten years. that town is just a ghost town. but it also has the same consequence in everywhere that this giant chain store comes into play. but this extraordinary rule cannot fit all. The advantage of first come first serve is obviously in this case. it is obsessive about numbers. 2001). the competitors were already powerfully investing in store automation. it is a killer. Independent small shops have to went out of business after this giant chain stores come into play. In global business world. New comer like Wal-Mart has to bring other strategies to persuade the customer to go shopping at its store. Wal-Mart has banned from local communities because it obliterates local business. only larger size cannot imply that Wal-Mart is better and successful. Better locations were already reserved by Carrefour. In fact. In short run Wal-Mart is like a custodian but when look cautiously. . Although. Wal-Mart also came under criticism for its impact on small retail businesses. At the time of Wal-Mart entry.

… but the data just does not exist the way it does in the U. in the country that people are nationalism such as Germany. retailers looking for data on local market trends. It is not only the protection for local business itself but also the differentiation in culture.S. The acquisition of Wertkauf and Interspar mislead the establishment in Germany that soon after caused huge number of problems to Wal-Mart.Wal-Mart’s 13 Joint Venture and Nationalism There are both advantages and disadvantages in Joint Venture or acquisition of local businesses. However. Some research says that Wal-Mart is behind the locals in their knowledge of taste. the acquisition of local chain retailers in some countries can make people feel that they will occupy by the foreigner. Moreover. 1998). One of a good example is the difficulty of Sam’s clubs in Brazil.” Walter Frascgetto. these strategies facilitate market presence and allow quicker market penetration. Partnerships are also the best sources of information on local sales trends and retailers’ performance data. These arrangements helped Wal-Mart understand a new market and avoid problems with local distributors.S. The retail giant had some problems with consumers and has had to make some adjustments. Especially. an . The company is seldom accepted from community groups when it opposes plans to build new stores. It is undeniably that Wal-Mart had to change its strategies in order to fit this culture. The Brazilian consumers never pay for a membership fee and they do not have much room to store a big volume of purchases (Lewis. Another problem in culture different is data collection. This also effect in purchasing banned from local customers. “I receive calls all the time from U. Culture Different The biggest barrier that Wal-Mart is facing when trying to grow in Global market is the opposition at the local level.

most of cheaper products are from Wal-Mart’s manufacturing goods. when it attempted to sell many products at price below cost. However. the prices are not so different. And this reaction was sometimes extreme. Nevertheless. they are going back to smaller neighborhood shops when the price differential between Wal-Mart and Convenience store is only 5% to 15% (Maas. The appearances are same but different in qualities. is now facing a looming challenge. the company tired to apply the same standards it used in The United States with local suppliers. some of house brand products cannot penetrate into local customer since they are imported from the United States and has only English language on the labels. 1994). All suppliers have to follow its rules and conditions. The prices and standards are set from Wal-Mart only. the retailers were forced to strongly rely on their own physical observations. If the customers want to buy a small amount of goods. First of all. Some local suppliers neither refused to give special discount nor . Wal-Mart is the biggest retailer. This is why Wal-Mart can buy and sell cheaper. Similar to Argentinians. In America. Furthermore. they prefer a convenience store that closer and easier. supported (as cited in Anderson.Wal-Mart’s 14 Arthur Andersen partner based in Mexico City. an ideal strategy of Wal-Mart. House Brand and Price Differentiate “Everyday Low Price”. Suppliers Relationships with suppliers were a major problem for Wal-Mart in International Market. 1998). As a result. Wal-Mart was banned from the manufacturers in some countries. But the relationship among retailers and manufacturers was quite different from the USA. Although Wal-Mart always claims that its sells cheaper.

Wal-Mart has been known not only for setting the tone with its venders for buying and selling. . Wal-Mart is tough on its suppliers. Also. it is easily to get dumped if the prices and qualities are not meet standardize. 1988 that “Our suppliers must commit to improving their facilities and machinery. WalMart should be one of your most profitable customer. claiming that the company eliminated manufacturer’s right to choose how it sells its products. 2003). In addition. but often for only dealing directly with vender by passing sales representatives. 2003). On the other hand. the largest retailer also using its market power to force suppliers to become more efficient. A research says that more than 100. The evident demonstrates that “Manufacturers have been forced to lay off workers after Wal-Mart cancelled orders when another vender cut its price a few cents more” (Lohr. lead shot in products on the shelf. combined with irregularity of delivery by suppliers and problems with inventory control. are sophisticated. These bad reputations make Wal-Mart become one of the most jeopardy customers. Furthermore. This. Sam Walton told Nation’s Business in April. some producers rejected delivery system. Venders have to shift their operations to China or elsewhere in order to get lower cost. strive to improve employee productivity. Even a discount in exchange was ignored. if they still want to be Wal-Mart’s accounts. in an attempt to keep cutting costs.” Yet. Despite a decade of effort. Wal-Mart still have not create a strong supply chain in the international marketplace. and have scale. they refused to send goods to Wal-Mart distribution center.Wal-Mart’s 15 to sell products to Wal-Mart. “If you are good with data.” said a retired consumerproducts executive (Bianco and Zellner.000 independent manufacturers representatives initiated a public information campaign to fight WalMart’s effort to remove them from the selling process.

it is just a foreigner. some selected products are controlled and nominated by local suppliers only. But not every concept matches all over the places. The examples of these problems are supply chain. This evidence demonstrates that Wal-Mart struggling to operate in China. Everyone knows that rules and regulations of Communist countries are very strict and limited. Gilman (2004) asserts that in Wal-Mart overseas expansion. China has population above one million and has cities up to 170 cities. it has been trying hard to launch the supercenter concept. Internal Problems Unique culture and concepts One of the reasons that failed Wal-Mart internationally is when it attempt to transport the company’s unique culture and retailing concept to each new country. But despite some early successes. This problem became clear when Wal-Mart entered into China. or . When Wal-Mart is in the United Stated. Wal-Mart was plagued by problems that defy quick solutions. Molin claims that “the company only operates 34 stores there and like other retailers entering the country. has run into red tape in its expansion efforts” (2004). dealing with government rules and regulations is unavoidable. For instance. The Communist government has boxed foreign retailers into selected countries to limit competition. strong local and foreign competition.Wal-Mart’s 16 Government Regulations In the business world. Even though Wal-Mart has had outlets in China since 1996. it is so powerful but in elsewhere. Moreover. 2002). it has yet to open a store in a booming city. and Chinese’s favorite vegetables have to be bought nearby too (Groeber. liquor and tobacco must be bought locally. and lots of government’s red tape.

“Our biggest mistake was putting our name up before we had the service and low price. Together with its hypermarket expansion. The popularity in larges sales volume does not make any meaningful impact on sales. In spite of adjust or create new concept. “Who else can lose $300 millions a year in Germany and Barely notice?” (Wal around the world…. These brands were initially used for more than a thousand items of products selling in its supercenter stores. they have no room for the bulky merchandises. rather than adapting to local market. leads Wal-Mart failed in Germany market. (2001). Schmidt. Wal-Mart seems not to consider in this theory. definitely. the giant distributor failed in making profit. Sam’s choice and Great Value. It insists that any problems do not reflect the culture of the company as a whole. Wal-Mart pays no attention to the culture different. Menzer admitted with Economist.border retailer can be a retail giant outer its home. 2001). Without a doubt. for example. The mistake of exporting its culture wholesale. Wal-Mart indicates a desire to stamps its brand on every store. and still enlarge its own culture from one to another countries. Wal-Mart also introduces its private labels.Wal-Mart’s 17 even in Brazil. Not every new cross. this supercenter concept does not fit in this country. “We screwed up in German. Most of Brazilians are living in very small places and have tiny storages.” said in Zellner. As a result. People were disappointed” (as cited in Wal around the world…. . 2001). et al. Most of Wal-Mart overseas problems were avoidable.” Mr. “It’s good to introduce global standards but you also need to adapt to local practice.

Wal-Mart was argued that it cannot claim to be an international company when the managers in the foreign countries do not even speak the language of that country. This ruling was brought by employees who were forced to work overtime between 1994 and 1999. The unions complain that Wal-Mart stores take advantages from the stuffs. highly visible international company like Wal-Mart is going to continue facing significant challenges as it is now dealing with social issues: fairly and unfairly in employment. Wal-Mart is trying to reduce the numbers of full-time employees to facilitate the workers in joining unions. working continually to repel organizing attempts in the United States and around the world. Due to rapid growth of Wal-Mart.”. these problems still hurt the company itself. without pay (“Wal-Mart Stores. 2004).Wal-Mart’s 18 Human Resource Management With the world becoming a global village. the biggest problem is its lack of human capital. they were not being able to pay for health insurance and other benefits. etc. Wal-Mart workers generally gave the company high performances. Inc. they got a very low pay one. This helps WalMart to eliminate unions’ basis (Biddle. Some say that it is a very big discount store which will do anything just about to get bigger. Wal-Mart employment problems are easily seen from the headlines: Illegal immigrants mopping its floors. employees did not get pay from overtime working. Moreover. Wal-Mart was judge to pay workers for their overtime hours. In February 2004. 2004). Low wages lead worker strike. One of the biggest problems is likely to come from unions and community groups. Wal-Mart remained a unionized company. Thus. . Only on their income. Sex discrimination. but they never get proper pay and benefits. Even though no one can force to have union in Wal-Mart. In fact.

Women employees are often overlooked or ignored when it came time to promote. First. and one of the best ways to do that is by hiring locally. including managers. though. Besides when employees were promoted to higher-level jobs. Schnidt. as the company grows bigger. there was an expectation that they would be moved to other stores. Last but not least. et al. sexual discrimination is another eternal controversy topic of Wal-Mart. Local employees. lack of experiences in the company culture. Some of women stuffs about being told that they were unsuited to management because the working hours are too long. especially in the areas of operations and merchandising (Zellner. Sam Walton discussed the changes he had made to his original management philosophy of requiring managers to be extremely flexible: May be that was necessary back in the old days (that one had to be ready to relocate on a moment’s notice to move into management). women employees are the first abandon choice since they are inflexible. and maybe it was more rigid than it needed to be. As a result. as much as business need required (Rock. Wal-Mart cannot maintain employees’ quality as in the United States. 2001). it’s not really appropriate anymore for several reasons. Now. In his 1992 autobiography. Individual country leaders were given more freedom to run the business. we need to find more ways to stay in touch with the communities where we operate.Wal-Mart’s 19 The company solved this circumstance by decentralize management authority from headquarter to International operation. However. 2001). and they should be home with their children. . districts or regions. Available data showed that. they are slowly adjusted. the percentage of women employed by Wal- Mart decreased from 76 per cent to 64 per cent since 1996 (Rock. 2001).

smart women at a disadvantage in our company because. joint venture and nationalism. and human resource management.S. which are presented in this paper. at the time they weren’t as free to pick up and move as many men were.S. On the other hand. the old way really put good. destroy small business.78) Conclusion Wal-Mart is the world's largest retailer and the largest company in the world based on revenues. it also enforces expanding throughout in the international market. Both external and internal problems which Wal-Mart is facing with at this current situation are the primary reasons. These critical problems provide the difficulty for expanding in this new market and competing with its competitors in the global market. However. Second. and letting them have a career in their home community . so that this will help to create the opportunity for . There are several reasons. the achievement in the U.Wal-Mart’s 20 developing managers locally. (p. market cannot always guarantee that Wal-Mart will also success in anywhere else. It is critical for Wal-Mart to analyze these external and internal problems and find the solution to overcome them. house brand and price differentiate. ignoring profits (income). giving the reason why Wal-Mart does not do well in the global market. and market capitalization. The external problems are late entry. and government regulations. suppliers.if they perform. While Wal-Mart has been tremendous successful running its business in the U. Now I’ve seen the light on the opportunities we missed out on with women. the internal problems which it still confronts in the operation systems are unique culture and concepts. overlook competitors. culture different. assets. market.

the company needs to be flexible to adapt the new environment in order to survive and accomplish in its market. environment. expanding to the unfamiliar market which contains a different culture. Moreover. and pattern. .Wal-Mart’s 21 it to glow in the market and be the globally competitive in the future.

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Wal around the world.. Wal-Mart International Operations. Retrieved April 26.Wal-Mart’s 23 The Wal-Mart Culture. (1992) Made in America. (2001). How well Does WalMart Travel? BusinessWeek. Retrieved April 12. & Dawley.com. Zellner. (2001). 2004 from http://walmart. Inc.K. 2004 from http://walmart. p82. (3747). M. 2004 from http://hoovers. Economist. S. (8251). Retrieved April 26. Ihlwan. New York: Bantam Books. (2004).com. . A.com Walton. 361. H. Schmidt. (2004). (2004).. Wal-Mart Stores. p55. W.

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