Critical Analysis on Walmart Company (UAE & Kuwait)

Market Expansion Proposal for Walmart
Company (UAE & Kuwait)
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Table of Contents
Introduction…………………………..……………………………………..….………..3
Marketing Strategy………………..………………………………………………….…..4
Competitive strategy………………..……………………………………………………5
The Existing Market of Walmart………………..………….……………………………6
Walmart Product and Services that Planning to Expand..…………..….……………6
Main Body...……………………………………………………………………………...7
1. Two perspective emerging global markets of Walmart and examine PESTLE
analysis……………..……………………………………………………….....…………7
Merits and Demerits of UAE Market……………………….……………………………7
Merits and Demerits of Kuwait Market……………………….…………………………9
PESTLE Analysis on UAE and Kuwait Markets……………………………...………10
2. Critical Analysis of Which Market is Best Suited for the Chosen Product and
Organisation with Sufficient Evidence..………………..……………………..……13
3. Market Entry Plan to Introduce the Product in the Chosen Market..…….…14
Market Entry Plan..….……………..……………………………………………….……14
Entry Strategies..….………..……..……………………………………………….…….15
New Product Launched by Walmart.….……………………………………..….….….15
Choice of Market..….……..……..……...……………………………………………….16
Acquisition Strategy..….….……..……...……………………………………………….16
Steps and Strategies to Introduce the Product...….……..…………….……..………16
Steps to Introduce the Product in the Market….………………………..…………….17
Conclusion..……………..…………..………..…………..……………………...………19
References..……………..…………..………..…………..……………………...………21
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Introduction:
Walmart Inc. is an American multinational retail store incorporated in 1969 deals in
three business segments Walmart U.S, Walmart International and Sam's club.
Segmentation of the store operates with merchant concept in retail as well as digital
stores. It also offers financial services and related products as money orders, prepaid
cards, wire transfers, check cashing and bill payments. Walmart categories into retail,
wholesale and others and these sub categorised into supermarkets, discount centers,
home improvements, drug stores, convenience and digital stores. It is the biggest
organisation in consideration of revenue-over US $500 billion with more than 4700
locations approximately 11,600 stores under 59 banners in 28 countries and e-commerce
websites in 11 countries. Formerly, the primary objective of the organisation is selling in
mass at low prices on low margins. The organization became the largest retail store by
focusing on customer orientation, cost leadership and efficient distribution network (Akaka,
Vargo and Lusch, 2013). The current mission statement of the Walmart is ''we save people
money so they can live better'' and its tag line is ''Save money, live better''. Walmart is
reconstructing many stores and opening of 20 new stores. In this, they provide some extra
services to both customers and employees’ large aisles, new signs and flooring enchanted
electronics with attractive displays, a developed pharmacy, consultation area, cosmetics,
baby care rooms, produce department.
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Marketing strategy:
Marketing strategy is that business plan which adds value, frames key marketing
messages, and helps to search the potential consumer base by assessing the needs and
wants of the customers and it consist of marketing research by 7P's of marketing and
many more (Paliwoda and Thomas, 2013). Marketing Mix of Walmart (product, price,
place, promotion, people, process and physical evidence):
Product: Walmart is a largest retailer and it provides each and every merchandise
that a consumer utilise in day to day life consist of home appliances, toys, outdoor
essentials, grocery, electronics, college accessories, movies etc.
Price: Walmart emphasis on producing the products in large quantity to achieve the
economies of scale that provides the competitive advantage by offering 15% low price in
comparisons to competitors. Walton stated the message ''Always low prices'' and
''Everyday low prices'' according to the time and demand (Armstrong and et. al., 2011).
Walmart positioned itself as a goods offering comparatively at low price against its
competitors. In current time period, Walmart contribute about 2% to the country economy
and it is reached with their success in large part. The main pricing strategy of company is
to lower priced products delivered to their customers throughout the year instead of offer
such prices only on sales outcome.
Place: Walmart is giant organization that has more than 10,020 retail stores in 28
countries and operates in bricks and mortar as well as bricks and clicks. It operates in
discount stores, super venders, express stores etc. In current time, W is operating in few
countries such as USA, Chile, Argentina, Canada and South Africa.
Promotion: Walmart has its own promotional strategy in which it offer multiple
products into a bundle that gives high sales and margins also and this approach helps to
consumers to take frequent purchase decisions.
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People: Walmart deals in large number of countries, people who works in the
Walmart comes from the different caste, creed, religion and work form instead of the
management provides flexibility to their employees so that they can make comfortable
themselves. They look after their work hours, remuneration, training and skills so that
employees contribute at large.
Physical Evidence: There are more than 11000 stores spread in all over the world.
Each store has got multiple category products, efficient product placement etc. along with
this, Walmart has different offices, which spread in all across the world (Berthon and et.
al., 2012).
Process: Walmart has the 16 finest supply chain in the globe and its primary
objective is that customers should admire their services and consumers get products
frequently and shelves always remain full behind that a reliable supply and distribution
channel works.
Competitive Strategy of Walmart:
Walmart is the international retailing organisation which mainly deals in different
type of products and services such as canned food, frozen dinners, light bulbs, buttermilk
biscuits, cinnamon rolls, pies and some other traditional grocery store goods or products.
Thus with the support of Kuwait's government Walmart will become successful in
expanding their business. Operating with profitability in the competitive market and
building strong relationship. The competitive strategy of the Walmart includes the concept
of low price by producing large assortments of goods in different segments. Walmart
aggressively reap the benefits from the supply chain and transfer the benefit to their
ultimate consumers. And ''black Friday'' is the day it offers high discounts to its consumers
(Michaelidou, Siamagka and Christodoulides, 2011). Another aspect of the strategy is that
it will works on large and different chains of goods and high storage unit therefore it reaps
the high profit ratio and large consumer base by offering low prices in against to the
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competitors.
A very happy consumer is very essentials part of the success of the organisation
and Walmart devotes high investment on consumer research and management. It has
strong supply and operation team that serves millions of consumers. The distribution chain
that operates in 27 countries worldwide in retail, wholesale and others, the distribution
network of the organisation is very strong and it strategically operates the branches of the
whole world. Its retail units are physical stores of sizes ranging from 4000 to 180,000
square feet. Its positioned no. 6 in terms of distribution channel in retail sector and 16 rank
in terms of supply chain globally (Bertoli, 2013).
The Existing Market of Walmart:
The Walmart International series includes various formats include retail, wholesale
and others. These categories subdivided into supermarkets, store formats, discounts
stores, hypermarkets and in these markets they provided goods such as electronics,
movies, music, home and furniture, home appliances, clothing, footwear, jewellery, toys,
health and beauty, pet supplies, sporting goods and fitness, party supplies, grocery, photo
finishing, auto fitness etc. and the goods supplied by the organisation available for all age
groups and different demographics, at low prices so that consumers enchanted towards
the goods and services and applying the best supplier chain for each and every sphere of
the world. It handles efficiently the whole supply chain of such the large scale of goods.
Walmart Product /Services that Plan to Expand:
Walmart gain extraordinary success and prosperity in home industry before
commenced the plan of international expansion. They are expanding their products in the
international market place that named as “new brand clothes” to the customers. This is a
very attractive product because this will gain attention of large number of customers for
introducing this product in the UAE and Kuwait markets; Walmart can gain attention of
large number of consumers. Also make them satisfied with such goods and services in
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order to acquire more profit and income (Chen, Wang and Wang, 2010). It plans to
revamped its online website with focus on home and fashion appliances. It also invests in
''smart cart'' technology in which consumer can avail the discounts if the consumer packs
more goods in one packet.
MAIN BODY
1. Two perspective emerging global markets of Walmart and examine PESTLE
analysis
Walmart is an American international retail corporation, which operate and regulate
chain of hypermarkets, discount department stores and grocery shops. The company offer
various products and services to their customers and satisfy their demand or
requirements. Organisations try to expand their business operations in different location
where they attract large number of customers through providing effective goods and
services (McKenzie-Mohr, 2011). Walmart company international operations comprised
with around 6,360 stores and there are approximately 8,00,000 employees who are work
with the firm. The main emerging markets where Walmart operate can their business in
UAE and Kuwait where it is not exist in present time period.
Merits and Demerits of UAE Market:
Merits of UAE Market:
UAE is the strategic location between east and west that develop it accessibility to
the main emerging economies, connected with shipping routes and provide goods
transportation between different regions in Middle East, Asia, Europe and Africa (Chung,
Lu Wang and Huang, 2012). Furthermore, UAE hold strong potentials since it is
considered as a free-trade city and a business hub for many organizations around the
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world including Walmart.
Optimism About the Future:
In UAE market, the company can seen their future, which helps them in maintaining
position in this region and can choose an appropriate place for their business operations
whether it is located in main-land or in a free zone area such as JAFZA. Through this, they
can enhance its income and revenue for attracting large number of customers. Under the
terms of the agreement, the private equity company operate and regulate around 80%
equity stake in the Walmart in UAE. They are focus on expanding their business in other
areas of this country where they gain attention of large number of customers.
Stabilised Government Funds
A decade of solid fiscal administration has left UAE with the financial position, which
is envy of the United States. Walmart require concentrating on government-stabilised
finances that can be used in operating and regulating their business operations and its
functions effectively (Cranfill, Inose and Lemay, Apple Inc., 2012).
Demerits of UAE Market:
Walmart has struggled to compete in the market area, as customers have generally
preferred bulk discounts for large shipping trips and the convenience of local stores for
smaller quantities. While company holds strong possibility, Walmart does not capable for
establish itself in the region.
A Weary Consumer:
The he part of UAE success story in the past decades that can expand the
consumer credit which gave various people access to cars, TVs and other products. In
UAE, Walmart does not easily attract various customers due to lack of expansion in the
large market place (Malhotra, 2011).
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Tight Labour Market:
Despite two year of slow growth and development, unemployment remains record
lower around 5.3%. Walmart also struggled to analyse the qualified employees and must
paid salary and wages for keeping workers with another cause for the UAE cost. The
dearth skilled labours have been blamed for delayed construction and manufacturing of
firm products and services.
Merits and Demerits of Kuwait Market:
Merits of Kuwait Market:
 High saving on income: This is one of the main factors of working in this country.
In Kuwait, there are no taxes, subsidised amenities and general lower cost of living,
which comparatively make easy for saving money of the company. Walmart can
establish their branch in this country so they can save more income and profit as
compare to the other nation. So this will help them in gaining more profit by
providing desired goods to the customers.
 Strong banking system: The banking and financial system in Kuwait play an
important role in developing the country. The banking sector is stable and
dependable which became more respected sector in the Middle East and North
Africa regions. Walmart can enjoy the services and facilities of banks, which help
them growing their business operations easily in other areas of respected nation.
Demerits of Kuwait Market:
Kuwait environment is complex for the business, which required flexibility, patience
and persistence. Most of the exporters and investors in Kuwait face the challenges and
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issues, which exist in other countries such as inconsistent and lack of transparency in
decision making. Walmart also face major issue while promote their products in the
existing market place because it is an expensive place. There are various competitors,
which occurs in the market environment.
PESTLE analysis on UAE and Kuwait Markets:
PESTEL stands for Political, Economical, Social, Technological, Environment and
Legal analysis which is a framework or tool used by the marketers to examine the macro
environment factors that have an impact on particular organisation also to tack the
environment they are operating in it. This PESTLE analysis will assist us in identify which
country is best suitable for Walmart to expand their business operations.
 Political factor: Political factors are those factor that are being affect by the
government intervention such as rules and regulation, various government polices
etc. Walmart can face some political conflicts in UAE in terms of lack of ownership
and transparency. On the other hand, if company operate business in Kuwait then it
will face less intervention of government and lower tax rate, which help them in
gaining higher income (Day, 2011).
 Economical Factor: Economical factor help to determine the current and future
values of the business (Kotler, 2011). In UAE it’s not easy for the expatriates to own
land or building and around 80% of the workforce in UAE are expatriates. On the
other hand, Kuwait has strong economical status so Walmart can gain higher GDP
rate by promoting their products and services among customers in the large market
place.
 Social factor: Social Factor is used to evaluate, organise and take the
macroeconomic factor that directly impact on business for current and future.
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Walmart can develop products as per the current trends which gaining attention of
large of customers in the UAE market. If Walmart expand their business in Kuwait,
they enjoy the trade in a free zone where all they are acquiring more customers.
 Technology factor: Technology factors are the external factors that affect business
related to the presence and development of technology on domestic and
international scale. As Technological factors plays very important role as it can
transform business into failure or success (De Langhe, and et. al., 2011). Due to
massive growth and high intervention of UAE government Walmart faces lot of
problem such as less technological support and updated equipment through which
they develop new products. On the other hand, in Kuwait market Walmart can
promote their technology and also transfer it, which help them in taking position in
the diversified region.
 Environmental factor: External factor influences the business by the ability of
investing or achieving its strategic goals and objective of the organisation. Walmart
require analysing whole country environment according to this they need to develop
products, which are not impact on natural things of UAE. On the other hand, Kuwait
is the oil drilling and exploration country so Walmart has not many opportunities to
mould environment as per their requirements.
 Legal factor: Legal factor evaluate all the regulatory and lawful determinants that
can have both negative and positive impact on the market action or on the decision
of the company. Walmart through which they can easily perform business
operations and functions in better manner should follow UAE government rules and
regulations. On the other hand, Kuwait government less intervention directly affects
on Walmart business so they easily develop their own policies and strategies
without any permission.
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SWOT ANALYSIS:
Walmart SWOT analysis reveals that how the largest organization in the world use
competitive benefits and advantages to dominate and successfully grow in the retail
sector. This will help in identifying company strength, weakness, opportunities and threats
that directly affect the company internal factors. These are described as under:
 Strength – Walmart has core abilities and competencies which involve usage of
information technology which assist company at international level. It is the largest
retail company and perform country wide. The focused strategy is in the place for
human resource management and development. Most of the people are major key
to Walmart business concern and it spend more time and money in conducting
training and development sessions. Walmart has grown substantially in current
years and it has major experienced to expand company at global level.
 Weakness – Walmart sell product in all over the country and it may not have the
flexibility of more focused on competitors or rivals. The firm is facing major
competition in North America along with variety of stores such as Kmart and target.
They have capable to identify and find out the small niche market and compete with
successful against the Walmart for home consumer sales. It is the world largest
grocery retailer and control their venture, despite its IT benefits can leave it weak in
some areas due to huge span of control.
 Opportunities – It is take over, acquisition, merge and form strategic alliances with
other international retailers, and focus on particular market place. For example,
bharti-walmart in India. The company stores are currently trade in relation to small
number of nations. Hence, there are tremendous opportunities in order to provide
chance in future time period to expand business operations and its functions
effectively.
 Threats – Walmart's business are totally linked with retail market situation and the
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changes are based on consumer point of view regarding new products and
services. Such factors required to compel the firm for develop and make some
competitive strategic changes.
2. Critical Analysis of Which Market is Best Suited for the Chosen Product and
Organisation with Sufficient Evidence
Walmart is the international retailing organisation which mainly deals in different
type of products and services such as canned food, frozen dinners, light bulbs, buttermilk
biscuits, cinnamon rolls, pies and some other traditional grocery store goods or products.
For the company, Kuwait is the best appropriate place for introducing their new product in
the market area. Retailing in Kuwait is without the doubt one of the industry, which has
shown the changes and dynamics. For gaining strength, the sector has mainly focused on
expanding and delivering the more comprehensive services or facilities that emphasise
convenience to the final user (Kim and Ko, 2012).
Kuwait is the wealthiest country as per capita income. As Kuwait welcomes global
investors to invest and help them to grow continuously with much intervention of the lawful
determinants, and government polices. Walmart has become one of the major retail
operators. Continuously changing with optimized logistic, supply and market innovations
and expanding their business. Such as:
Less government interference: Due to less government interference by the
government of Kuwait, Walmart can exercise lot of political stability that help to expand
their business. Moreover, the company can build strong relationship with their customer
and remain competitive in the market (De Vries, Gensler and Leeflang, 2012). Kuwait
might be better as compare to the UAE market because it is free trade zone and also
companies can generate higher income while operating business. There are no taxes;
subsidized amenities and generally, lower cost of living comparatively make it easier for
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save the money for the country people. On the other hand, Walmart might not want to
expand their business in UAE market because it might be demanding and frustrating
market to do business since the major challenge for the firm is interaction of national laws;
individual domain legislation and free zone law can be hard and unclear for the business.
Proper Supply and distribution channel: A strong distribution channel is
connected with the strong facilities and transportation system. So that goods are being
delivered to the customer on time. Walmart provides great distribution and supply
channels so that goods and services to their customer along with facilities provided by the
government of Kuwait.
Culture and Income Group People: Walmart might be successful by
understanding the culture and the custom of the Kuwaiti culture. It will help them in
providing better quality services to the customers according to their need and demand
based in on their different income.
Online shopping: By introducing online shopping app of Walmart, the company
has provided convenience to their customer as they can shop from their convenient
places. It has increased reliability of the store. As in today's context people prefer more
digitalization. Thus with the support of Kuwait's government Walmart has become
successful in expanding their business. Operating with profitability in the competitive
market and building strong relationship (Fletcher and Crawford, 2013).
3. Market entry plan to introduce the product in the chosen market
Market Entry Plan:
Market entry plan is well-planned method to expand market after visualizing the new
market opportunities to deliver the goods and services by analyzing the needs and wants
of the consumer base. When an organization plan to expand in overseas market there are
many ways and methods to enter into the niche market and these methods are vary with
cost, risk and degree of control (Huotari and Hamari, 2012). Analysis of the potential
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competitor and consumers essential before framing the entry strategies and many other
factors also play important role via trade barriers, localized knowledge, price of local
products, export and available competition in new market, transportation cost, degree of
adaptation of products.
Entry Strategies:
There are a variety of ways in through which organization can into a new segment
but these three are very important direct and indirect export or production in a align
country.
 Direct exporting
 Licensing
 Franchising
 Partnering
 Joint ventures
 Buying a company
 Piggybacking
 Turkey projects
 Greenfield investments
New Product Launched by Walmart:
Walmart recently launch the new series of cloth chain, which are for different age
group people after analyzing the demand of the potential consumers and opportunities in
Kuwait it is a move that make the retail giant that come to in fashion. Walmart which has
been frequently chasing more prosperous and fashion conscious shoppers committed to
being a destination for a trend. Organization plan to create a premium fashion brand.
Expansion in the domestic market as well as the international market is very essential for
the acquired the large base of the consumers and also utilise the domestically developed
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knowledge bases and competences such as efficient store management, effective use of
technology via suppliers, merchandising skills, logistics and I.T development to benefit the
foreign outlets (Gardner and Kleinerman, Microsoft Corporation, 2012).
Choice of Market:
The choice of the market for expansion is not easy for the Walmart first of all during
the era of globalization. It is important to examine and have focused first on UAE market
since it has certain characteristics that make it more attractive for first entry. This industry
is mature, less government interventions, economically sound, rich culture, resourceful
and it enchanted new entrant would have take a market share away from an existing
player. Further, as with most newcomers Walmart, neutralizing the competitive advantages
have to entirely new to the market and it relatively small size and lack of strong local
customer relationships in the arena (Hoffman and Fodor, 2010). It adopted the strategy of
acquisition, which is beneficial for the development of the new product and range of the
market.
Acquisition Strategy:
Acquisition strategy involves the methodology for the acquisition of the target
companies, which creates value for them and helps to embolden their brand equity. The
utility of the acquisition strategy is profitable because a management team gain profitable
outcomes. And this cannot be a simplistic determination to merge two firms but it helps to
reduce the cost of overlapping and generate the value of shareholders. It helps to adjacent
industry strategy, diversify the non-core activities, demographic expansion, low cost are
the main attributes that contributes in strength of the business. It is the best method
through which business can expand in the other country without any disruption and issue.
It is observed as the viable for expanding strategies for the variety of businesses with
retailers in choosing this path and directions effectively. This is accurate strategy for enter
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in the new market place to the Walmart company which depend on comparing the
potential benefits to expand their business operations and functions in proper manner
(Gilligan and Hird, 2012). Most of the retailers are using this method through which they
can easily gain attention of different country people who are willing to purchase such type
of new products and services. Along with this, it is useful for less control over factors but
they are offer different advantages to quick procedures and thus more immediate income
capacity effectively. The option for expanding business through acquisition can mainly
depend upon the type of businesses and its location. But Walmart use this method for
expand their business operations and functions in order to gain more income and revenue
in better manner. Retailers can analysed that it is best suitable strategy through they can
easily attracting large number of customers towards company goods and services. For
introducing new product, this is the main duty of company is to follow all steps which are
required while launching new commodity.
Steps and Strategies to Introduce the Product:
Before launching the new product in different market Walmart commence deep
research and analysis is very essential without it most experienced and giant organisation
have had both wild success and epic failure so gauge the market introspective study is
very important. Before explore the market find the facts about company's readiness
(expansion plan, budget, current scenario, perception of the consumers) are the important
factors should be tested. Another important aspect is that identify that company is ready to
enjoy overnight growth. And another aspect is company succeed it is able to compensate
the increased demand and should staff is ready to new expansion and company have
sufficient staffing for handling the customer service department (Grönroos and Ravald,
2011).
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Steps to Introduce the Product in the Market:
Competitor Analysis:
The competition become tougher day-by-day to defend the competitors the
workforce of the Walmart have to be better prepare to grab the opportunities. Before
launch a new product the organisation have to make a list of all competitors that exists in
the arena. For acknowledge more about the competitors learn from the former employees
and know about the marketing strategy and sales strategy of your competitor. Use the
weapons like what runs where, similar web and SEM rush. It shows which Ads the
competitor displays are best and which sites are running on (Hinz and et. al., 2011). This
gives the better understanding to understand the competitor strength and weakness.
Walmart avail all these measures to understand the perspective of the rivalry. Study the
entire funnel of your competitor so that we acquire the knowledge of the powers and weak
areas of the competitor.
Target the potential consumer:
An organisation can find every consumer as potential consumer by focusing on
different segments and Walmart uses these aspects:
 Demographic: age, gender, income, family size, and family life cycle.
 Geography: Region, population, climate.
 Behaviour: Usage, loyalty, readiness to purchase, purchase behaviour.
 Benefits: social status, health, emotions.
By following the above ways, the potential customers of Walmart should be finding out
from different segments in the company.
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Value preposition:
The foremost way of adds up value to Walmart is to increase the speed and
accuracy whenever the product is deliver. Quality matters a lot for consumers, quality does
not mean that greater durability and excellence in design only, it mainly refers to the utility
for the consumer. Another way of value enhancement is increase convenience of goods
and services.
Create Market Strategy and Tactics:
For making a viable entry into a new market first of all the marketing and sales
channels should be entitled (Hartley and Claycomb, 2013). Marketing focuses on winning
and keeping customers. It is a strategic and includes numbers, facts and objectives.
Walmart uses good marketing strategy spells out tactics and tools about in which market
the business should expand and the decisions related to market via online, multichannel
marketing that create tremendous success.
Test Marketing Approach:
After creating a solid business plan, then it time to apply it into the market and
measure the results and generate feedback of the marketers, research the perception of
consumer for the new product and if the feedbacks are negative then necessary reforms
should be applied and the product should be launched in the market and therefore,
Walmart should successfully apply the approach.
Conclusion
According to the above-described report, it can be analysed that Walmart Inc. is an
American multinational retail organisation incorporated and deals in three business
segments Walmart U.S, Walmart International and Sam's club. Marketing strategy is that
business plan which adds value, frames key marketing messages, and helps to search the
potential consumer base by assessing the needs and wants of the customers and it
consist of marketing research by 7P's of marketing and many more. In the competitive
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strategy of the Walmart it includes the concept of low price by producing large assortments
of goods in different segments. Walmart gain extraordinary success and prosperity in
home industry before commenced the plan of international expansion. The company offer
various products and services to their customers and satisfy their demand or
requirements. Organisations try to establish and expand their business operations in
different location where they attract large number of customers through providing effective
goods and services. There are various issues and problems, which are, occur at the time
market expansion. Walmart is also facing different challenges and issue while doing
market expansion in the Kuwait market place. As business growth, various issues and
opportunities are demand for common solution, which help them in gaining higher income
and profitability.
Along with this, various new competitions are arising when they are expanding their
business operations in other location or nation in order to gain more profitability or income.
For this, they need to focus on target market where they are easily establishing their
business in another country in better manner. This is required for an organisation is to
overcome all such issues and problems in effective manner. So they need to train their
employees for doing appropriate work or task, which help them in getting higher
development and growth. Walmart needs to improve the training sessions, they provides
to their employees and the best solution to this, is to make changes and improvements in
their training program in relevant areas where they are enhancing the abilities and skills of
their staff members without maintaining an unnecessarily large workforce. For solving the
issue of sort of changes, this is required to motivate their employees in order to increasing
their skills and knowledge. It is required for an organisation is to manage their employees
which should be minimise the reduction in number of workers, particularly in areas where
they can get appropriate results or outcomes. Also the major issue arise while expansion
of business operations in other country is to identifying the main risk that create problem
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for the company in order to gain more profitability. Expansion can have major impact on
firm financial impact, financial investment and time to grow in the new market place before
developing appropriate income or profits. For this, they required to analyse whole market
area where they try to expand their business. Walmart try to make expansion in Kuwait
where they invest capital for attracting large number of customers. If company required to
expand their business operations and functions so this will necessary for them is to have
appropriate budget and income which help in maintaining their company systems
effectively. On the other hand, the company need to handle and manage all legal factors,
which occurs while implementing new products and services in the large market place. For
reduction in welcoming the changes so they require to adopt that environment where they
can easily run their business operations and functions in effective manner. Also gain more
profitability and income for taking higher position in the large market place of Kuwait.
Thus, Walmart is expanding in the Kuwait might be the best option because it holds
government's strong financial position that provide ability to sign large projects. It has
strong investment grade sovereign and lower political risk, which enable the possibility for
Walmart, is to do business in better manner.
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