Course:

International
Business Management

/Group presentation/
Group members Student ID
1. Nguyen Giang Ngoc Anh 31191023049
2. Ngo Uyen Nhi 31191026978
3. Pham Thi Khanh Quy 31191026989
4. Nguyen Thi Trang 31191025966
5. Ho Minh Dat 31191024823
6. Pham Thanh Phuong 31191023818
7. Nguyen Van Quyet Tien 31191027149
8. Nguyen Thanh Tai 31191023895
 CASE STUDY:
WAL-MART'S FAILURE
IN GERMANY
- Group 6 -
 Part 1
OUT LINE Introduction

Part 2
Case presentation

Part 3
Key issues/problems
that Wal-Mart faced
in Germany

Part 4
Implications for
firms/managers in
a similar situation
 Part: Introduction
1.The Importance Of Studying The
International Business Environment
For students:
Creating a global outlook
Expanding your toolbox of skills
For Firms:
Allowing firms to understand global issues
Discovering their business niche based on their depth research
Understanding the constant changes in the global market
Determining their business opportunities and threats
 2.The Intended Outcome Of The Presentation
Getting to know the case: Wal-Mart’s Failure in Germany.
-
Understanding the problems/issues that Wal-Mart faced
when expanding in Germany.
-
Learning some methods to solve the problems based
on the analysis/data/situation.
-
Understanding how the international business environment
affects the firm’s decision to expand internationally.
Part 2: Case presentation
1. The Story Of Wal-Mart:
Founded in the US in 1962
Became the largest US retailer in 1991
Entered Germany in December 1997
Applied an “everyday low-prices” strategy
Experienced losses and announced its defeat in 2006
WHY THIS IS IB RELATED?
 Part 3:
Key Issues/Problems That
Wal-mart Faced in Germany
1. Eight reasons why Wal-Mart
failed in Germany.

1
German Law Wouldn’t
2
Wal-Mart and
Allow Wal-Mart to German Unions
Undercut Local Prices. Were Incompatible.

3
Wal-Mart
4
Retail Chains Were
Underestimated Already Doing Poorly
Their Competitors. in Germany.
 5
Employees Felt
6
Wal-Mart Failed to Take Into
Uncomfortable With Account Cultural Differences
Wal-Mart’s Practices. Surrounding Shopping.

7 8
Wal-Mart Didn’t Focus Wal-Mart Failed to Adapt
Their Services Enough. Germany's Economy.
 2. Approaches were
undertaken by Wal-Mart to
address the issues/problems

No significant actions
to tackle those
problems properly.

Divesting its assets to

local retailers and exit
the market in 2006.

3. Evaluation
 4. Recommendations for Wal-Mart

Analyzing politics, Analyzing the

Adapting
social, and culture differences in
to the locals.
of a country. cultural dimensions.
Part 4:
Implications for
firms/managers
in a similar
situation
1. Being more proactive in studying/researching about a
new country (economic system, regulations, consumer
habits, etc.) before penetrating its market
2. Considering the best entry options for their business
3. Not subjectively applying the proven success formula
into a new market
4. Deeply understanding legal and regulatory barriers.
5. Not underrating the competitors
 e f e r ence s 1. Smith, W. by J. (n.d.). Why Study International Business? Prospects.ac.uk.
Retrieved November 20, 2021, from https://www.prospects.ac.uk/jobs-and-
References
work-experience/job-sectors/business-consulting-and-management/why-study-
international-business

2. Why you should study international business? Marbella International

University Centre. (2021, June 10). Retrieved November 20, 2021, from
https://miuc.org/study-international-business/.

3. 11 reasons to study International Business Environment. World's Largest

Collection of Essays! Published by Experts. (2015, September 1). Retrieved
November 20, 2021, from https://www.shareyouressays.com/knowledge/11-
reasons-to-study-international-business-environment/114485.

4. Importance of business environment - TOPPR-guides. (n.d.). Retrieved

November 20, 2021, from https://www.toppr.com/guides/commercial-
knowledge/business-environment/importance-of-business-environment/.

5. Walmart - Our Story. corporate.walmart.com/. (2021). Retrieved 23 November

R

2021, from https://corporate.walmart.com/our-story/our-history#id00000169-

a6a5-dc58-a9ed-bff7d0bb0000.
 e f e r ence s
References 6. Failure of Walmart in Germany. (2021). [Ebook]. Retrieved 23 November
2021, from https://www.assignmentsbox.co.uk/wp-
content/uploads/2011/10/Failure-of-Wal-mart-in-Germany.pdf.

7. Walmart In German - The Prime Example Of The Internationalization

Process Failed. VietnamCredit. (2020). Retrieved 23 November 2021,
from https://vietnamcredit.com.vn/news/walmart-in-german-the-prime-
example-of-the-internationalization-process-failed_14135.

8. Nyamweya, S. (2021). Why Walmart Failed in German Market: A Critical

Analysis. HubPages. Retrieved 23 November 2021, from
https://discover.hubpages.com/business/Why-Walmart-Failed-in-German-
Market-Analysis.
9. Case Study: Wal-Mart’s Failure in Germany. mbaknol.com. (2021).
Retrieved 23 November 2021, from https://www.mbaknol.com/management-
case-studies/case-study-wal-marts-failure-in-germany/.

10.Jui, P. (2021). Walmart’s Downfall in Germany: A Case Study. Journal

of International Management. Retrieved 23 November 2021, from
R

https://journalofinternationalmanagement.wordpress.com/2011/05/16/wal
marts-downfall-in-germany-a-case-study/.
 e f e r ence s
References 11. Thomas, M. (2021). 9 Reasons Walmart Failed in Germany! (An Avoidable
Disaster). QuerySprout. Retrieved 23 November 2021, from
https://querysprout.com/why-walmart-failed-in-germany.

12. Clark, A. (2006). Wal-Mart pulls out of Germany. The Guardian.

Retrieved 23 November 2021, from
https://www.theguardian.com/business/2006/jul/28/retail.money.

13. ‘Từ người dưng cứ muốn hóa người thân’: Sai lầm 1 ly đi ngay hàng tỷ USD
khiến Walmart phải ê chề rời Đức. Cafebiz.vn. (2019). Retrieved 23
November 2021, from https://cafebiz.vn/tu-nguoi-dung-cu-muon-hoa-
nguoi-than-sai-lam-1-ly-di-ngay-hang-ty-usd-khien-walmart-phai-e-che-
roi-duc-20191227092314388.chn.

14. Abner, B. (2015). 4 considerations before taking your business

international. Bizjournals.com. Retrieved 23 November 2021, from
https://www.bizjournals.com/bizjournals/how-to/growth-
strategies/2015/02/considerations-for-taking-your-business-
R

global.html.
 Thanks
for listening!