Case Study Analysis: Walmart's International Expansion Challenges

This case study delves into the challenges faced by Walmart in its international expansion, specifically focusing on issues related to understanding local buying patterns, cultural differences, regulations, and competition. The analysis highlights the management issues stemming from these challenges, including financial losses due to regulatory problems and the inability to effectively communicate the company's low-cost model to local consumers. The study also touches upon the challenges of inadequate scale economies and strict regulations in certain regions, as well as labor union conflicts. The core of the analysis links these issues to the multi-domestic strategy, suggesting that Walmart could have addressed these challenges by adapting to local consumer tastes, working effectively with government regulations, and promoting local responsiveness. The case study aims to provide insights into the complexities of international business and the importance of strategic adaptation.

3112IBA-WORKSHOP CASE ANALYSIS PREPARATION FORM
Please be aware that this aspect of the assessment task is about PREPARATION for the workshop discussions, late submissions will
NOT be accepted for the workshop submissions.
Your submissions should total and not exceed 300 words per case analysis preparation. You will answer the specific questions outlined
for each case. The case analysis preparation must be submitted via the course site. No emailed submissions will be marked.
Name:……………………………Student No:……………………Workshop No:……………..… Case Study:……………………………....
Briefly explain what is the case
about?
(you can use bullet points for this
question)
1. The organization in question is Walmart while the issue resulting in contention is
challenges brought about by internationalization. Even though the international company
has been the fastets growing of all Walmart companies, the coporation has been left with
several challenges including issues pertaining to understanding of local buying patterns,
understaing local cultures, regulations and competition, and lastly emerging markets.
2. Even after the expansion to other geographical markets, the company still loses money
due to regional issues like regulatory problems and also being unable to influence and
explain to local consumers about the company’s low cost models.
3. Another issue that has been a challenge to the coporation is its inadequate scale
economies as well as availability of strict regulations in some geographical regions of the
world like Germany. Labor union conflicts are also some of the issues faced by Walmart
International. All the issues aforementioned explain the case’ subject matter.
Briefly explain the management
issue(s)?
(you can use bullet points for this
question)
1. The management of Walmart decided best on the interest of the corporation to
internationalize. However, as much as Warlmat International became the fastest growing
organization, it faced several management issues including challanges pertaining to
understanding of local buying patterns, understaing local cultures, regulations and
competition, and lastly emerging markets.
2. Diversification to areas of South America led to issues pertainig to regulations as well as
being unable to convince local consumers regarding the company’s low cost models
resulting to the company losing a lot of money.
3. In the German region, the organization faced challenges of inadequate scale economies
as well as availability of strict regulations. In such areas, the company also faced issues
of labor union conflicts as a result of workers resisting the customs of the company.
Link the management issue to the
model/theory of the week and briefly
explain the connection.
With regards to the theory of management, the highlighted issues could easily be tackled if the
company’s management tried the multi-domestic strategy as a way of determining local
consumer tastes, work alongside government relations, ensuring high levels of local
responsiveness, focusing on domestic competition, as well as encouraging product
customization.

3112IBA-WORKSHOP CASE ANALYSIS PREPARATION FORM