Wal-Mart's Global Strategies

Running Head: WAL-MART’S GLOBAL STRATEGIES
WAL-MART’S GLOBAL STRATEGIES
Abdulkarim Fayez Al Rashedi
MGT-672: Decision Theory within the Global Marketplace
Colorado State University – Global Campus
Dr. Mark Ellis
March 20, 2020

WAL-MART’S GLOBAL STRATEGIES 1
What was Walmart’s early global expansion strategy? Was this a good strategy for
Walmart? Why or why not?
Walmart Inc is a multinational retail corporation of the America that tends to function within
a chain of hypermarkets, department stores with discounts and grocery stores. The aim of this
paper is to understand the operational function of the company and understand the market
strategies that is being followed.
When the Walmart took the initiative of volunteering beyond its domestic markets, the
company required to determine the accurate form of entrance. On the other hand, it is to be noted
that the Walmart company was being driven by market seeking as well as by the resource
seeking creativities when the company decided to enter the Latin America and Canada (Spicer
& Hyatt, 2017). However, the tactics that was being chosen by the company in order to enter the
country are as follows:
 Maintain a co ordination with the officials of the government
 Focusing on the enhancing purchasing power of the middle class
 Creation of the partnership with the domestic businesses and that of the organizations.
It is to be noted that though both Canada and Mexico tends to have geographic locales with that
of the Central America, the reasons for which Walmart went into Mexico and Canada is because
of the production of the North American Free Trade Agreement that became very much
significant by the time of 1994 (Elder & Dauvergne, 2015). The agreement limits the association
of the Us’s cost of working together. This gives the right to the Walmart to have an upper hand
over various contenders while working in the Canadian and the Mexican Business sector. It was
being identified by the company that internalization was the main priority of the company. In

WAL-MART’S GLOBAL STRATEGIES 2
order to have growth in the future, it was being understood by the company that the company
must make its explorations outside the US as well. Staying within the US, will not help the
company in making more profits. The benefits will remain confined in itself. Low price promise
was being made by the company. The company adopted the productive business strategy which
claims that the stores in each of the country will be having different names and the products will
be made as per the different preferences as well (Hunt, Watts & Bryant, 2018). The company
will be making the products as per the requirement of the different country. The corporate
management strategy of the company is that they are going to sell the products of the high
quality in low price in itself.
The strategy is considered to be a successful one as it brought great advantages and
profits to that of the company in itself.
What cultural problems did Walmart face in some of the international markets it entered?
Various number of cultural problems are being faced by the international business. The
company Walmart is not an exception. There are case in which the local business communities
tends to put pressure on the authorities in order to reject the company’s allowance to operate.
There are situations in which the communities tends to include the company in order to protect
the values of their community (LIU, 2013). The various types of culture that are prevalent is also
considered by the company in order to open up new stores. The cultural preferences also tends to
have a great impact as well. for example, the retail customers of the Brazil tends to consider the
quality of the product to be the most important factor in the decision making. Hence, the
differences in the culture also tends to act as a barrier.
Benefits and challenges of expansion