1.0.

Introduction:

In this era of globalization more and more companies look to expand their network worldwide.

However, it takes an enormous amount of time, money and effort to make it happen. Before an

organization decides to enter in an international market, it needs to looks at various aspects such

as the risk that comes with it, the cost, and the potential economic growth it can offer.

Furthermore, the organization needs to be well versed in the cultural background of that specific

country, its history, the corporate etiquette, and many more facets that will decide the success of

the organization in a specific market. Moreover, it is absolutely fundamental for an organization

that has the desire to enter a global market to understand the laws and limitations of a specific

country.

1.1. Chosen Organization and Chosen International Market:

Walmart has been planning to expand their network in the marketplace of Bangladesh. Walmart

is a wholesale store that operates in 28 countries around the world and it further wishes to

increase its territory to grow its business more and more and it sees Bangladesh as their next

potential marketplace. Walmart has been the biggest retail corporation around the world for quite

a long time. Since international organizations are entering the market of Bangladesh, Walmart

intends to grab the market and establish themselves as the leading chain shop and grocery store

retailer in Bangladesh as well.

1.2. Sources of Information:

The primary source of information will be research articles, newspaper articles, and Walmart

official website. Articles from magazines and journals, different annual reviews

1.3. History of the intended Company:

Walmart is world’s largest retail organization in terms of their network and revenue both. Sam

Walton wanted to provide great service to customer with lower price and that is how the journey

of Walmart started. It would not be wrong to say that Walmart’s history is the history of Sam

Walton. Sam Walton’s experience in the retail sector came after he joined the military at the age

of 24, and he started operating in various store of his own. Which turned out to be successful and

inspired Sam Walton to open the first Walmart in 1962. The company went public in 1970, and

kept on growing ever since (Walmart, n.d.). In 1991, Walmart first enters the global market with

a Mexican retail enterprise named “Cifra”. It was named Sam’s Club. In 1996 Walmart opens its

first retails store in China. After that Walmart keep expanding their network in Asia, Africa and

other regions of the world.

1.4. VMO of the Company:

Since 1962, when Walmart first started their journey, they always had a clear vision in mind.

Walmart’s vision was to establish themselves as the best retailer in the eyes of the customers and

the employees. Their current vision focuses more on customers, the idea is to offer quality

products on a lower price to the customers, whatever way it is convenient for them. To achieve

their vision Walmart has a mission statement. Walmart’s mission resonate with their vision.

Their mission is to ensure a better life for people all over the world by saving people cost.
Walmart sets lots of objectives to achieve their goal. Few of the objectives of Walmart are,

having nearby Walmart stores to meet the need of the consumers, working towards improving

overall returns, developing a worldwide ecommerce tactics and so on.

2.0. Rationale for choosing the Foreign Country:

Retail industry of Bangladesh has gone through revolutionary changes in recent years which.

Furthermore, the economy of Bangladesh has been growing very fast, Average growth rate has

been around 6.2 percent over the past decade, which makes Bangladesh an ideal place to expand

a business.

2.1. PESTEL Analysis of Bangladesh

Political: When an organization wishes to enter the global arena, political stability is of

paramount importance. Not all government allows global trade to the same extent. Government

policies, legislation, and other factors come into play.

Administration policies on foreign organization:

 A Digital Commerce Policy was approved recently which puts a limit of 49 percent on

investment from foreign organization. However, the government reconsidered and

decided to allow the foreign companies to keep 100 percent, (The Daily Star, 2018).
  Bangladesh government encourages investments from foreign organization, and in most

of the cases it provides the same facilities and restriction to the local and foreign

industries for example the incentives behind investing, which offers : hundred percent

proprietorship in almost all the sectors; and tax exclusion

Economical: The successful transition of a company that wishes to enter a foreign market

largely depends on economic steadiness of that specific country. When a country has a stable

economy, people are more likely to spend, which eventually will determine how profitable the

organization will be. Since Walmart is planning to get hold of the retail sector of Bangladesh,

the economy of the country will play a vital role in their progress. In the recent years, the

economy of Bangladesh has flourished, so it is no surprise that Walmart wants to establish

themselves as the leading retailer in this country.

 Economy situation:

 Bangladesh has just recently gained the status of a developing country with its per capita

income being approximately US$1,500 in the year of 2009 which improved in the recent

years.

 Its per capita income increased to USD1751 and GDP grew about 7.86 percent in 2017.

 The GDP grew in the agriculture sector about 4.2%, in the industry sector about 12% and

in service areas about 6.4%, (Star Online Report, 2018).

 Bangladesh Corporate Tax Rates:

Corporate tax for publicly listed organizations in Bangladesh is 25%. Tax rates for different

sectors in Bangladesh are- (KPMG, 2017):

  Listed Company 25%

 Non-listed Company 35%

 Bank and Insurance Company 40-42.5%

 Telecommunication sector 45%

Social: Social parameters have great influence over how profitable an organization will be on a

foreign market. With a flourishing economy customers are more likely to spend more, however,

in which sector they are going to spend more depends on the social factors. Same goes for

Walmart. Bangladesh retail industry has gone through revolutionary changes in recent years

which make Walmart's decision to enter the market easier.

 The corporate section of Bangladesh is gradually developing in terms of implementation

of consumer rights, and the economic importance of Social responsibility in the light of

economic development

 Local businesses are getting more and more aware of the social responsibilities and how

it can be a long term investment

Technological: In this era of technological advancement, it is no surprise that businesses are

affected by technological factors as well. It is at the center of everything. From HR management

to supply chain, everything circles around technological factors, more so in the case of

marketing. So it is safe to say that technology plays a central role here. Walmart always focuses

on the services they provide and they have already embraced the technological advancement and

they will face hardly any difficulties to use technology for more profit.
  Bangladesh has put their focus on developing new technologies and adopting foreign

technology

 Bangladesh is largely reliant on foreign technologies, so planning is necessary for the

adoption and implementation of those technologies

 Government has put in place a policy on science and technology

Environmental: With globalization, more and more companies are expanding their businesses

overseas, however, with this growth, comes the responsibility to sustain the environment.

 As a result of unawareness on environmental issues, the environment suffers terrible

conditions

 Natural phenomenon such as heavy rain can cause environmental damage especially the

roads which can be a concern for Walmart when it comes to delivering their products

To maintain environmental sustainability Walmart already focuses on better packaging, and

waste management. This will eventually help with the consumption of energy which can work in

their favor when they compete against the local businesses

Legal: International organization that wishes to enter a foreign market needs to be compliant

with the laws and regulations of that country otherwise they might suffer loss in their business

and it also may hamper the reputation of the organization. The laws and regulations of

Bangladesh for foreign retail brands are not very favorable. However, the potential growth in the

retail sector makes it worth the risk.

A lot of the regulations come from the British rule. Such as, (hussain, n.d.):

 Copyright Law

 Trademark Law

 Act on Patent and Design dates back to 1911

3.0. Literature Review

According to Normative model of decision making, when an organization plans to enter a

foreign market the entry mode should focus on the balance between profit returns and the risks

associated with it. An organization is supposed to opt for an entry mode that has higher return

probability; however, higher returns are usually associated with higher risks. Yet, from

behavioral demonstration it can be surmised that an organization may also chose to operate based

on resource accessibility and the degree of control it will have (Cespedes, 1988). Resource

accessibility indicates an organization’s capability to operate in a global market in terms of

economy and administration on the other hand control is necessary to compete with the

incumbents to bring forth the highest possible return. Control specifies the necessity to impact

the technique and decision making of an organization (Anderson, 1986).

3.1. Relevant Industry Analysis of Bangladesh

Walmart is a retail establishment that runs a chain of superstores, discount department stores, and grocery

stores. Retail industry of Bangladesh has gone through revolutionary changes in the recent years. To

analyze the retail industry Porter’s five forces will be used.

3.1.1. Porter’s Five Forces:

1. Negotiating Control of Buyers: Little

 Consumers generally doesn’t buy in a large amount

 A huge customer base

 Individual customer base

2. Negotiating Control of Suppliers: Moderate

 Buys large amount of goods from the suppliers.

 Costs very little when they need to switch from supplier to supplier.

 Large number of substitute goods

3. New entrants: Moderately high

 High economic scale

 Required fund is quite high

 Customers mainly look for products with low prices and standard quality.

 Doesn’t cost much for consumers to switch companies

 A well-structured distribution management is needed.

4. Power of Substitutes: Quite adequate

 Substitute goods have very competitive quality and price margin

 Cost very little for customers to switch companies

5. Rivalry amongst incumbents: Quite adequate

 Wal-Mart holds the highest shares in superstore business.

 Incumbents with similar economy scale

New
entrants

Threats from new entrants

Bargaining power
of suppliers
Rivalary Buyers
Suppliers among
Incumbents Bargaining power
of buyers

Threats from substitutes

Substitutes

Fig: Porter’s five forces

3.2. Competitors of the relevant business in Bangladesh

Upon deciding to enter a foreign market, a very crucial aspect is to study competitors of the

relevant business in that country. The study needs to include identifying the competitors, making

profiles and use that profiles to create strategic plans to beat them in the market.

3.2.1. 3 I Model (Immediate, Impending, Invisible)

More often than not organizations primarily put all their attention on immediate competitors

however, before entering into a foreign market an extensive research is necessary. An extensive

research encompasses not just the immediate competitors but also the impending and invisible

competitors. Moreover, when an organization needs to figure out the proper marketing strategy

to enter a foreign market this research will help analyzing all the current competitors and the

potential competitors as well.

For Walmart, the largest retail establishment in the world, immediate competitors in Bangladesh

will be Agora. . It is the largest retail establishments in Bangladesh that runs various chain shops

and superstores, a place for quality shopping. Agora has transformed the whole retail sector in

the country. It has 12 outlets in the major areas of Dhaka and offers more than twenty thousand

items. These items can be categorized into 11 parts, from Grocery to Cosmetics (Islam, n.d.).
3.2.2. Perceptual Mapping of potential incumbent (Use both online and offline the

relevant medium)

4.0. SWOT Analysis Offline

As the world’s biggest retailer, Walmart faces competition from everywhere, and with its

planning to expand more in the foreign market it essential to study the strengths and weaknesses

it has as well as make use of opportunities that lies ahead and take necessary steps to eliminate

the threats possessed. To successfully enter into a foreign market and have a sustainable growth

the following SWOT analysis can work as a strategic framework.

Offline:

 Strength:

 Walmart is a well renowned brand in the retail industry and has an established brand

name that is recognized throughout the world which will surely give Walmart an edge

over the local incumbents

 It is considered to be the largest retailer in terms of revenue and stores

 Scale of their operation is enormous when it comes to the amount of products they sell

which makes them the toughest competitor in any market.

 Weakness:
  Walmart faced countless lawsuits from their employees. They are accused of unfair

treatments, discrimination, and low wages. Walmart will have to put extra effort into

these areas to make sure that they don’t fuel these acquisition any more than it already is

 The company hardly pay any heed to the social obligations it has towards its employees

which in return put a bad impact on the corporation's reputation which is the last thing an

organization would want when they prepare to enter into a foreign market.

 Walmart has a history of selling products with substandard quality in some cases which

can be a downfall when they enter a foreign market unless they can guarantee the quality

of their products.

 Opportunities:

 Since, nowadays, people are more conscious about what they are eating Walmart can

bring together products that are more healthier and organic

 Walmart has the opportunity to introduce innovative grocery formats

 They can expand in the fashion category since it has a high demand in the country

 Threats:

 Fierce competition from renowned local retailers such as Agora

 Price rise of daily commodities

 • Variety of Products
• Scope of operation
• Global growth

•Lawsuits
•Bad publicity

•Expanding more in online sector

•Tendency towards more healthy eating

•Price rising
•Increasing competion

Figure: SWOT analysis

5.0. Marketing Mix both Offline and Online

Marketing Mix of Walmart analyses the 4Ps which stands for Product, Price, Place and

Promotion. These 4ps helps understanding the strategy needs to be used by Walmart for their

marketing.

Offline:

 Product:

 Various kinds of products in different categories like, groceries, home-appliances,

pharmaceutical goods, and so on.

 Getting products at a discounted price by buying in a large amount

 Strong and reliable association with the supply base

  There are products that can only be found in Walmart stores, and they are leveled white

which can be what differentiate them from other organizations (Corporate Finance

Institute, n.d.).

 Price:

 Keeping a low price and concentrate on selling large amounts to generate profit

 Excellent procurement strategies that allow the company to bargain with the most

affordable players in the supply chain to keep the prices low.

 Walmart’s SKU structures provide them with a more efficient supply chain which helps

them getting products at a lower price

 Introducing numerous purchase options, such as paying with cash or paying in

installments.

 Place:

 Organized distribution structure to receive and distribute products

 Geographical locations to puts itself in an strategically advantageous position ,

 For conveniently delivering the goods, availability of distribution trucks

 Promotion:

 Offering promotional and discount offers

 Usage of slogans like “everyday low prices”

  Use commercial such as advertisements to reach out to the customers

 Dependable guarantees and policies for replacing most of the products

6.0. International Distribution Strategy

6.1. Factors influencing the choice of channels

6.2. Your tailor made distribution channel

7.0. International Strategies & Entry Mode Strategies

Walmart chose multi-domestic strategy in USA which was successfully implemented however

they are now trying to focus on transnational strategy and that is exactly the same strategy they

should use to enter the market of Bangladesh since it will enable them to exploit the local and

international competencies in an efficient manner

 Figure: International Strategies

7.1. International Strategy of incumbent company to enter Bangladesh (if any)

There is currently no competitor of Walmart that plans to enter the market of Bangladesh

7.1.1. Entry Mode Strategies

Before entering into a foreign market an organization first needs to select the market. After the

market selection there are generally 4 types of entry mood into a foreign market. However, how

do a global retailer should select an entry mode into the market they chose? How should

Walmart choose the entry mode into a foreign market?

 • Competition
• Economy
Country

• Political
• Legal
Strategy

• Acquisition
• Franchising
• Wholly owned subsidiary
Implementation • Joint ventures

Figure: Foreign market entry

Figure: Mode of entry

Bangladesh is culturally diversified country and in a country like this the best mode of entry is

joint venture with a local organization and get adequate information about the country’s market,

which can help Walmart to connect with suppliers more easily and efficiently. Furthermore, it
can also help with the legal bindings of the country. It can help Walmart settle in the foreign

market faster

8.0. International Marketing Communications Models

Marketing communication models are categorized based on these three buying stages which are,

Cognitive stage, Affective stage, and Behavior stage. The International Marketing

Communications Models for both online and offline activities are shown below-

AIDA

DAGMAR

Advertising
Exposure Model
Marketing
Communication
Model Heightened
Appreciation
Model

Model of
JOYEE

Levidge and
Steiner Model

Figure: Marketing Communications Models

8.1. AIDA Model: AIDA is a marketing model stands for Attention, Interest, Desire and Action

of the customers

I(Interest) D(Desire) A(Action)

A(Attention)
Attracting the Raising the Triggering the Influencing
attention of curiosity of customers consumers to
the the consumer desire and take
consumers needs action(purcha
se)

8.1.1. Analysis of AIDA Model:

AIDA is an acronym for the four steps that can make the advertising successful. The brand value

of Walmart will be fairly sufficient to get the attention of the customers and to raise the interest

of the consumers Walmart can use slogans like, ‘Save money, live better’. Next, to trigger the

desire of the customers Walmart can focus on not just rational needs but the emotional needs as

well and for that Walmart will have to have a extensive idea about the market needs and the

culture of the country. Finally, marketing should leave an impression on the customers so that

they are influenced to buy the products

8.2. Integrated Marketing Communication Planning (IMC) Model:

Review the marketing plan

Promotional strategy analysis

Communication process analysis

Budget making

Determine Integrated Marketing Communication process

Direct
Advertisement Promotion PR Selling Interactive
marketing

Direct
Advertisement Promotion Selling Interactive
PR objectives marketing
objectives objectives objectives objectives
objectives

Advertisement Direct
Promotion Selling Interactive
PR strategy marketing
strategy strategy strategy strategy
strategy

Implementation
Monitoring

Figure: Integrated Marketing Communication Planning Model

8.2.1. Analysis of Integrated Marketing and Communication Planning Model:

Offline:

8.3. Integrated Communication Model

Context
factors

Medium

Communicator Information Communicator

Relationship
and time
facotrs

8.3.1. Analysis of Integrated Communication Model

Offline:

9.0. SWOT Analysis:

 Strength:

 Walmart offers grocery delivery which cut out the need to actually visit the store
  The online ordering process is very simple and straightforward

 Weakness:

 Complaints on delivery system

 Forcing people to buy online by removing the items from the store

 Not the best customer service

 Opportunities:

 They can make improvements in their e-commerce sector since, only 3 percent of Wal-

Mart's returns come from e-commerce

 The online groceries section is supposed to grow at a 20 percent CAGR over the next 5

years (Trefis, 2017).

 Threats:

 Supposedly, about 18 percent online grocery transactions in the United States in 2017 is

from Amazon and they are already planning to capture the online market here in

Bangladesh (Trefis, 2017).

10.0. Marketing Mix focusing on the Online Activities

Product:

 Grocery products delivery in online sector

Price:

 Walmart charge $9.95 for that. However, consumers are entitled to one free delivery.

Place:

 A sturdy ecommerce platform for the customers and saves the trouble of actually visiting

the store for any purchase

 Advanced tracking system for the products

Promotion:
  Secure shipping methods that ensure the highest level of service for customers who

purchase online

 Using the social media, and e-Commerce platform for promotional purposes

11.0. International Strategies & Entry Mode Strategies

Walmart chose multi-domestic strategy in USA which was successfully implemented however

they are now trying to focus on transnational strategy and that is exactly the same strategy they

should use to enter the market of Bangladesh since it will enable them to exploit the local and

international competencies in an efficient manner

11.1. International Strategy of incumbent company to enter Bangladesh

Amazon is considered to be the biggest competitor of Walmart in the world market and the

biggest ecommerce giant in the world. It has come to Bangladesh and held meetings with the
government and the authorities concerned. Amazon follows the transnational strategy to enter the

global market. It is planning to start operating here by 2020.

Figure:

marketing budget in the following way: 75% of it was dedicated to online activities (advertising
through the website, social media, etc.) while the other 25% was dedicated to the offline activities
(advertising on TV, radio, newspapers, etc.).

The entrepreneur individuated as the most useful tools research the following: Google Analytics,
Google Trends, Google Global Market Finder and Twitter and Instagram. The last two are important
as they allow to have an immediate feedback on a topic or a product.
11.1.1. Entry Mode Strategies

It is better for e-business to run by the native employees from the subsidiaries. Exporting from

another country would only increase the cost and time to deliver the products. Furthermore,

acquisition of any organization will create difficulties in term of culture and the market demand

and only work as a barrier to enter into the foreign market, (Kim Dung, 2008).

11.1.2. The Entry Mode Strategy of the incumbent to Enter Bangladesh

The potential incumbent that plans to enter Bangladesh is Amazon. Another potential incumbent

in e-commerce retail sector is Alibaba. Alibaba already entered Bangladesh through acquisition

mode. They have acquired DARAZ and been operating in Bangladesh

12.0. International Marketing Communications Models

 AIDA

Levidge and
DAGMAR
Steiner Model

Marketing
Communicati
on Model

Advertising
Model of
Exposure
JOYEE
Model

Heightened
Appreciation
Model
12.1. The most relevant model for your online strategy

12.1.1. Analysis of your relevant model

In the online sector to get the attention of the consumers Walmart must be searchable on the

internet with ease and have good indexing. To raise the interest and trigger the desire to buy

Walmart needs to have an interface that is user friendly and graphically aesthetic. Reliable

payment and delivery option

12.2. Integrated Marketing Communication Planning (IMC) Model

Figure: IMC Model

12.2.1. Analysis of Integrated Marketing and Communication Planning Model

12.3. Integrated Communication Model (Use both online and offline the relevant medium)

12.3.1. Analysis of Integrated Communication Model

12.0. How can you justify your online activities based on the culture and ecstasy?

13.0 The benefit of Globalization to enhance your online activities in your intended market.
Conclusion
Recommendations

Enforce Cost saving based data

Leverage its stores in the suburban area into express

store

Introduce cost saving based EPR management

Bibliography