Success Failure -Customers WTP improved the chaotic mexican retail stores

Walmart stores
Mexico x -Customers
-Similar like
to US "the
with american
more way" of
advertising shopping
in local newspapers and carrying
- Brasilians responded slow to EDLP model because they were used
Canada x atowider variety of
discounts alreadyfurniture
Brazil x - Walmart did not offer credit
Argentina x Walmart susceptible to price wars and suppliers boycotts
Central America x Various formats
Chile x More willing to pay for the convience and affordability.
China x Willing to pay for convinience, less bought but more trips made.
Japan x The willingness to pay was lower, as clients were more price conscious.
Germany x Cared morerivals
-Undercut about privacy
prices andand self-service,
expand inventorywilling to pay
beyond foodmore
and for this.
apparel
U.K. x include merchandise
Africa x Needed competition due to a olygopoly in the retail sector
- Partership with domestic trucking company to help manage logistic
Cost Factors
-Adapted Entry Mode
- The cost operation to leverage
of the acqusition cheap
of the labor
120 to 142 Woolco discount stores -
-The Cheaper
company labor - Workers
decided to made
retain 5
theUSD a day which likely cost a good
employee Join Venture
- Suppliers have a high bargaining power in the brazilian retail market -
amount ofhad
moneyverywith salaries, benefits and training. Aquisition
-Walmart
High cost of aorganicslow growth
growth rate 100%
owning of growth being only
of US-styled 5% center.
super making it -
only half of the overall market.
Cost of supplier boycotts and price wars created loss of revenue and New stores + acquisition
increases cost. New stores
-- Cost
Cost of
of acquiring
expansion for 646 stores
controlling stake in Distribucion y Servicio of 58.2% --
Cost
Cost of managing afor
of acquisition 33%card
credit in 2005 and then
business to providing
and of 51% in 2006
credit services to Acquired 33% of CARHCO
customers.
-Parternig with a local investor Acquisition (partnership)
-Partnership with Citic Pacific Partnership
Bad
- Thebrand
cost ofimage due to
acquiring low
the cost model
Wertfaut and the unprofitable Interspar Acquisition 6% Seiyu
chain Aquisition
-The cost of the acqusition of the 200 stores of Asda Aquisition
-Lack of proper infraestructure and corruption Aquisition
Other
-Multichanel strategys different stroes formats
different economic strategies
-With 9 different brandsand 5 store formats,
Walmart
Started asoverdirfied
an organic growth but finally relied on
the aquisition/partnership
Merged operations withrole of a smaller
Mexico retailer.
Partnership played key with which
success was already
in Chile
succesful
and and let brand remain their identity.
Government was the main reason to do a joint US
with their similar business model from the
made
venturethebecause
adaptation easier.
of their regulations with foreign
investment
Cultural missteps, brand loyalty, bad press and
infringement of localoflaws
The ideal aquisition Asdaand regulations
which forced
was already a
their failure
succesful into theand
company country.
continued the business
Suppliers are aware of the potential of walmart
model fromand
worldwide thethey
company
see anaquired
opportunity for wider
markets.