Analyzing Walmart's International Expansion Challenges

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Introduction:
Walmart is an American Multinational discount store with its headquarters in Bentonville,
Arkansas. Walmart is a one-stop shopping centre providing grocery products including dairy
products fresh products and bakery products. With that Walmart also provides electronics,
home furnishings, toys and apparel in their supercentres. Walmart began its journey with the
opening of the first supercentre in 1988 with 300 associates. Currently, it operates around
10500 stores in 19 countries and e-commerce websites. More than 2.1 million associates are
working with the company around the world and 1.6 million are working in the US alone. It is
considered as largest global retail company in the industry. Before expansion in the
international market, Walmart achieved extraordinary growth and success in the home country
(US). Most of the international expansion strategy of the company was successful except for
challenges or setbacks in Germany, South Korea and the earlier phase in the UK. In less than
10 years after its entry, Walmart has existed in both the country i.e. Germany and South Korea.
In 2016, 269 stores were closed worldwide by Walmart due to losses faced in these stores.
Though most of the stores are currently outside the USA, the performance of the stores lags
behind their USA counterparts. Walmart failed to simply sell its “Everday Low Price” strategy
in other countries of the world. In this research, we will analyse the challenges faced by
Walmart in its International Expansion. The reason behind the Strategy of the company worked
in one country while failed disasters in other countries are analysed. Walmart is a company
which has faced success and failure in its expansion which helps us to analyse the successful
strategy and failed strategies of the company for our learning and future development purposes.
Research Trigger:
The main aim behind the research is for learning purposes and future personal development by
analysing the failure and success strategy of Walmart Company. This would help to know how
the company changes its strategy according to the requirements of different countries. Coping
with failure in other countries after having marvellous success in the home country helps to
learn about the different dynamics and strategies of the company.