Market Entry Assessment for Walmart

Running head: MARKET ENTRY ASSESSMENT FOR WALMART
Market Entry Assessment for Walmart
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MARKET ENTRY ASSESSMENT FOR WALMART1
Table of Contents
Introduction......................................................................................................................................2
Change in the retail sector...............................................................................................................2
Analysis of retail industry in Australia............................................................................................3
Internationalization of Walmart.......................................................................................................6
Mode of entry..................................................................................................................................7
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................9

MARKET ENTRY ASSESSMENT FOR WALMART2
Introduction
Walmart is one of the biggest retail giants in the world. The company operates in various
countries that include the United States, Mexico, Argentina, India, the United Kingdom,
Singapore and many more countries in the world. Thus, it is a multinational enterprise (MNE).
Like any other MNE, Walmart too want to expand its business all over the world by entering
retail industry of each and every potential country in the world (Ellickson 2016). This report
speaks about one such country where Walmart may want to make an entry to gain retail market
share in that country. The country chosen in this report for discussion is Australia. Australia is
among one of the developed countries in the world and the retail industry is quite promising in
the country. Therefore, the report analyses the reasons due to which Walmart may want to enter
the retail market in Australia too. To make the analyses two models has been considered one is
PESTLE and the other is Uppsala models. PESTLE model is relevant in this study because
before entering a market of a country overall or performance of the country needs to be assessed.
The performance of a country depends on its combined stability in political, economic, social,
technological, legal and environmental conditions. On the other hand, Uppsala model help stop
understand the internationalization of firms. Therefore, by making these analyses the report
discusses the appropriate mode for Walmart to enter the retail market for Australia.
Change in the retail sector
Retail industry is one of the oldest form of industries in the world. The industry has
changed a lot over the time. Previously, the producer brought their produced products in the
market and sell them. It means that producers were the retailers in the earlier days (Pantano et al.
2017). Later, retailers and producers became different entity. The retailers mainly were small and
sells products over counter. The retail industry further evolved when the concept of departmental

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stores came into light. However, in both cases the retailers aggregate products from distributors.
Therefore, even though the industry has evolved the only difference between a retailers in a
small store and departmental store is that in departmental stores, customers can get more variety
of products and in addition to that, products are generally cheaper in the departmental stores. The
major changes occur in the retail industry when concept of super markets came in. The super
market are the ones in which a customer can find any required household items such as grocery,
cutlery sets, cleaning products. Nowadays, under a single roof of a super market sells fashion
products and electronic products (Shaari and Hong 2018). Thus, a super market in today’s world
is the true only one stop shop. There are many such super markets companies operating all
around the world. Walmart is the largest retail super market by total revenue earned. It operates
in 10 countries all around the world and is eager to enter other countries to expand the market
(Shaw 2016). Australia is one of the potential market of retail industry. Potency of the retail
industry of Australia can understood from the success of the retail giants of the country like
Woolworths and Coles. There are many other MNE retail companies operating in the country
such as Tesco, Target, Aldi and IGA. Therefore, it is evident that entering the Australian retail
market and investing in it will be beneficial for Walmart. However, before making entry in the
country analysis of overall performance of the country is required. Therefore, the next section
focuses on PESTLE analysis retail industry of Australia.
Analysis of retail industry in Australia
To understand the overall stability and performance of Australia as a country it is
necessary to analyses every aspect of the country that impacts its overall balance. Hence, the
PESTLE analysis of the country given below.