Walmart's International Expansion and Strategic Choices in Turkey

ASSESSMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................4
1. Walmart’s international expansion..........................................................................................4
2. Strategic choices......................................................................................................................5
3. Reasons behind choices of location for subsidiary..................................................................7
4. Strategic method for entry and possible consequences...........................................................9
5. Organisational and managerial problems..............................................................................11
6. Strategic advice for the subsidiary to overcome the problems..............................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
A multinational company can be defined as the business which operates in different
countries at the same time. in simple word, an organization which has large number of business
activities in more than on country. The major benefit of the MNC’s companies are to gain
economic benefits in the business because they don’t have to pay high tax because many
countries reduces tax for enhancing their international trade. In addition, organization gets
change to generate profit margin on product which are provided in different countries to the
customer. Multination national corporation applies wide number of strategies to get success in
each country and in return influence GDP rate of business. To expand its business in global
market, offer innovative type products along with wide line by organization to customer.
There is an example of Walmart company which is multination corporation and operates
in various countries and offers wide variety products to customer through it’s subsidiary.
Organization is highly succeeded company in the global market through it’s subsidiaries.
Organization hasplan to expand it’s subsidiary in an international location. So, company chooses
Turkey to expand it’s business. The brief study of the report provides understanding about parent
company’s international expansion in term of historical performance, product and service range
and competitive position.
MAINBODY
1. Walmart’s international expansion
Walmart is an American multinational retail corporation which is mainly headquartered
in Bentonville, U.S. the organization is established by Sam Walton in 1962. It is operated a chain
of hypermarkets, discount department stores and grocery stores. It has 11,503 stores which is
operated in 27 countries and operates under 56 different names. Organization is considered as the
world’s largest company based on the revenue. It is the largest private limited type company in
the global world which occupies 2.2 million employees who offers their services in different
countries by its subsidiaries. The vision statement of Walmart is to become destination for the
customer to save money without concerning how much they purchase. This vision helps
company to develop position itself in the market as the retail leader. In other word organization

wants to become best retailer in the customer mind, consumers heart and employee. While the
mission statement of the company is to “save people’s money so that they can live high standard
life” (EDWARD FERGUSON. Walmart’s Mission Statement & Vision Statement, Generic &
Intensive Strategies.2019). The statement is interpreting that organization wants to implement
critical strategies which leads remarkable difference such as improves customers lifestyle by
consuming high quality products and in returns achieves high profit margin on the products.
Organization has developed its core values such as customer first, honesty, promote fairness in
pay structure of employees, gives high performance in the global market by offering innovative
products to customers. The mission, vision and core values of the company helps to expands it’s
business in different countries and improves demand of products by deep researching about
customer’s needs, expectation and preferences. Organization wide product line which helps to
attract large number of customers within company. By the product line can interpret that has
reason to become market leader. Due to wide product portfolio easy to attract each customer
within company and retains them prolog time. Organization believes in continue development so
always prepare to take change as per environment requirement.
Evaluation of historical performance
Initially organization offers product and services to customer at low price for gaining
higher volume sale at low profit margin. It is primary strategy which is implement by
organization gain trust of customer on brand. To gain high profit margin seeks low cost supplier
by company that leads competitive advantage within company thorough competitors. It also
improves selling infrastructure and in return gets high revenue in the market. Thus, organization
famous as first discounted city stores (Muñoz, Kennyand Stecher, eds., 2018). The organization
opens large number of stores in in US as first distribution center which puts pressure on
competitors and attracts customers to buy products on lower cost along with good quality. Then
over the period expands it’s business over the US and Mexico due to large volume sells that
empowers business by employees. Later on Walmart organizes into four divisions such as
Walmart US, Walmart international, Sam’s Club and Global E-commerce. Then these divisions
are subdivided into many subsidiaries i.e. supercenter, hypermarket, warehouse clubs, cash and
carry stores, drug stores, convenience stores and digital retails. Thus, organization expands it’s
business worldwide. Organization keeps change management, performance management and