Global strategy development and implementation PDF

Global strategy development
and implementationIntroduction
Wal-Mart is the largest retail chain in the world and also the world’s largest
corporation. The company started its globalization in the year 1991 when it
opened a Sam’s club near the Mexico City. In the year 1993 the company did
set up the Wal-Mart International which was to oversee the growing
opportunities of the company worldwide. Consequently, the company has
enjoyed the overseas operation growth and also consumer acceptance. Wal-
Mart has never changed its brand names, the every day low price and high
ethical standards although its approach to competing in the overseas has
evolved over time. Due to its entry into the foreign markets it changed its
local regulatory frame work and customer tastes.
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Your assignment should highlight, analyse and critically evaluate the following:
i. Reasons for parent company’s international expansion; (including an evaluation of
the company’s historical performance, products/service range, share of the market
and competitive position within the industry);
Wal-Mart global expansion strategy
The global expansion strategy of Wal-Mart is provision of goods at low prices
that could raise the living standards of people around the world. This
strategy involves globalization efforts of the company to enter into the
overseas markets. According to Troy (1), the bottom line for the Wal-Mart’s
company is “bigger and cheaper”. This is because the company intends to
maintain its low price kind of leadership while at the same time pursuing the
aggressive store expansion worldwide. This expansion is facilitated by
opening of new stores and clubs world wide.

Historical performance evaluation
Products Range
The stores feature wide, clean, brightly lit aisles and shelves stocked with quality items
including: family apparel, automotive products, health and beauty aids, home furnishings,
electronics, hardware, toys, sporting goods, lawn and garden items, pet supplies, jewelry, and
housewares.
The top-selling product at Walmart is, surprisingly, bananas! In a recent interview, McMillon
said that Walmart sells "billions of bananas" (via Bloomberg). Bananas have been Walmart's top
seller for years. However, the supply chain for Walmart stores is global, with suppliers in the
United Kingdom, Canada, China, Mexico, Taiwan, Hong Kong, France, and other
countries. Of the top five suppliers who generate large portions of their revenues from Walmart,
four are U.S. companies and one is based in Japan.
Share of the market
Walmart's share of its U.S. total addressable market (TAM) rose to 10% in fiscal 2021, after it
fell from 7.6% in fiscal 2016 to 7.4% in fiscal 2020.
Competitive position
ii. Possible strategic choices available to the parent company;
iii. Reasons for choice of location for the subsidiary;
iv. Strategic methods of entry and the possible consequences;
How do they enter into the markets?
Wal-Mart realized that if they took too long to enter into the foreign countries
they would be allowing the competitors a lead that is too difficult to close. To
avoid this end, they ventured into foreign countries to concentrate on their
expansion efforts. This means that the main method used by the Wal-Mart
Company in entering into new markets is by venturing into foreign countries.
This is ensured by either selling the products in other retail stores which in
turn distribute to the customers or by opening up its own store which will be
used in the distribution of its products. For example as mentioned earlier, by
the year 1993 Wal-Mart international operation had only one Sam’s club in
Mexico but it ventured fast into the neighboring counties like Argentina,
brazil, Indonesia china and Japan. This countries where perceived to be
unique in the retail market in terms of the logistical systems, consumers and
relationship between the suppliers and retailers.
How do they expand while in the market?
While in the market, Wal-Mart Company opened (build) more new stores in
the countries it had ventured into thus replicating the domestic operation
abroad. The company also expanded its markets by acquiring potential
companies. It also picked up new ideas from other countries which helped