Walmart Foreign Expansion Report Assignment

Added on - 16 Sep 2019

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Running head: WAL-MART FOREIGN EXPANSIONWAL-MART FOREIGNEXPANSION
1WAL-MART FOREIGN EXPANSIONTable of ContentsExecutive Summary.........................................................................................................................2Introduction......................................................................................................................................2Question 1........................................................................................................................................3Question 2........................................................................................................................................6Question 3........................................................................................................................................8Conclusions....................................................................................................................................10REFERENCES..............................................................................................................................11
2WAL-MART FOREIGN EXPANSIONExecutive SummaryWalmart is known to be a leader of the retail sector in the world. From its incorporation till now,this company has grown constantly and attained great success and excellence in revenue andsales. In United States, Walmart keeps and maintains first position in terms of discounts in retailsector. However, as the time is moving ahead, the US Retail industry is facing intensivecompetition and pressure from the rivalry companies and maintaining a leading position hasbecome a high challenge for Walmart. Walmart must follow trend of globalization and makestrategies for expansion of their business like Asia, Europe and Latin America.IntroductionThe breadth and speed of globalization has strong impact on the multinational corporationswhich motivate them for expanding the business in many overseas countries. Because of smallsized native supermarkets, The Asian and European market become a leader for the internationalcorporations like Walmart. Facts have proved that Walmart is always not successful in all themarkets where they have penetrated, for example they were not successful in South Korea andGermany (Arli, et al., 2013). This report will analyze the case of expansion of Walmart in GlobalMarket. The causes which motivate the corporations to take part in globalized market will beassessed, followed by the analysis of effective staffing approach of Walmart in Mexico.Furthermore, the Company’s failure in Germany and South Korea will be analyzed I subsequentparagraphs. This report will conclude with the significance of role of the culture in globalizedbusiness market (Baron, et al., 2017).
3WAL-MART FOREIGN EXPANSIONQuestion 1Through the use of suitable business tools, conduct a foreign market analysis and evaluatecritically the strategic and environmental reasons of why Wal-Mart engaged ininternationalisation strategies.Evaluation of environmental and strategic reasons for Walmart to be engaged in strategies forinternationalization.In present world, the expansion of global retail sector has attracted various big companies likeWalmart. The context and meaning of internationalization and globalization of marketing ischanging rapidly. Adersen and Schroeder (2010) has defined globalization as an ongoing activitywhich involves integration of regional economies, culture and societies through internationalmarket. There are many reasons which give reasons and explanation for Walmart’s involvementin global markets.The first reason comes out from the condition of saturation of US retail Market. As per Fed D.(2011), the saturation of domestic market and intensive competition has become the main rootcause for the companies to move towards internationalization of the business operation. Though,Walmart is considered as the largest retailer all over the globe in their home market, many smalland medium sized retailers have appeared in the market because of liberal trade policies in US.In United States, Approximately 81 big companies are there out of which many have retail chainthat are operated in their native country (Baron, et al., 2017). Walmart already has 4200 stores allthrough the United States that are owned by it. Thus, it is mandatory for the company to have itsbusiness expansion to other international markets I order to earn more profits as well as generatemore benefits.
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