Walmart Case Study

Ans 1) Walmart was introduced as a retail store with lowest price possible. Therefore, when

Walmart came to the top of the retail market in the US, they realized that there are limitations

in the local market which are hindering in future expansion. Walmart’s high standards of

service and their concept of “sell merchandise at the lowest price possible” was what boosted

their chances of getting into international markets and expanding further.

Ans 2) Walmart knew everybody loves lower priced products and discounts. Keeping that in mind,

Walmart opened its first international store in Mexico by forming a joint venture with Cifra, a

Mexican retail chain. After gaining sufficient experience with their Mexican partner, Walmart then

proceeded forward and entered Brazil and Argentine. Ultimately, attaining success in Latin America.

In order to gain success in China where competition was high and restrictions were not in favor of the

foreign retailers, Walmart had to come up with a competitive strategy. Walmart was forced to source

out local manufacturers. By sourcing out 85% of the Chinese stores, Walmart started marketing

Chinese products like coconut juice from the Guangdong province, hams and mushrooms from rural

Yunnan. Maintaining a relationship with Chinese agencies was a crucial factor which benefitted

Walmart.

Ans 3) In order to achieve success in India, Walmart should partner with Reliance Fresh, a big retail

chain in India and other retail stores from other states. This will help Walmart in understanding how

retail shops work in different states as every state has their own culture and way of working. What

works in North not necessarily will work in East, West and South.

As India has many religions, ethnicity, cultures and beliefs, it better for Walmart to not jump into the

market without gaining a proper understanding of it. Identifying challenges, weaknesses and strength

will make Walmart successful in India.

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Ans 4) Walmart’s international strategy was to expand their retail to a larger market which has more

stability. The idea they came up with was “sell merchandise at the lowest price possible” as lower

priced products and discounts attract people in every country.

Ans 5) List of Corporate Objectives –

 Globalization

 International Expansion

 International Recognition

 Market Strategies

Ans 6) My key takeaways from the case study of Globalization of Walmart –

 Entry strategies are different for different countries.

 Having an international strategy for international expansion is necessary.

 Sometimes we must partner up with other our competitors in order to achieve

success.

Ans 7) Entering into an entirely new market can be quite difficult and requires lots of brainstorming to

come up with a strategy which can ensure smooth and successful international expansion. Some of the

problems that Walmart encountered while entering the international markets were –

 Competition from local retailers.

 Restrictions from countries like China

 Adaption to local markets, different cultures and norms.

 Building relationships with companies in the same business.

 Making different strategies for different countries for their expansion.

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References

Durham Library

https://durhamcollege.ca/student-life/campus-services/library

Wal-Mart's Global Expansion: Challenges and Perspectives

https://ivypanda.com/essays/wal-marts-challenges-in-global-expansion/