Walmart's International Expansion: A Case Study of Success & Failure

This case study delves into Walmart's international expansion, analyzing its successes and failures in various markets. It examines the reasons behind Walmart's triumphs in countries like the USA, Mexico, and China, while also exploring the setbacks experienced in Germany, South Korea, and other regions. The research employs a mixed-method approach, combining qualitative insights with financial data to assess the impact of different strategies. By studying Walmart's experiences, the research aims to provide valuable lessons for students, managers, and retailers seeking to understand the dynamics of international business and the importance of adapting strategies to local market conditions. The analysis considers factors such as cultural differences, market dynamics, and the company's organizational behavior in shaping its global presence. The research utilizes secondary data from journals, websites, and other published sources to provide a comprehensive overview of Walmart's international journey.

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Introduction:
Walmart is an American Multinational discount store with its headquarters in Bentonville,
Arkansas. Walmart is a one-stop shopping centre providing grocery products including dairy
products fresh products and bakery products. With that Walmart also provides electronics,
home furnishings, toys and apparel in their supercentres. Walmart began its journey with the
opening of the first supercentre in 1988 with 300 associates. Currently, it operates around
10500 stores in 19 countries and e-commerce websites. More than 2.1 million associates are
working with the company around the world and 1.6 million are working in the US alone. It is
considered as largest global retail company in the industry. Before expansion in the
international market, Walmart achieved extraordinary growth and success in the home country
(US). Most of the international expansion strategy of the company was successful except for
challenges or setbacks in Germany, South Korea and the earlier phase in the UK. In less than
10 years after its entry, Walmart has existed in both the country i.e. Germany and South Korea.
In 2016, 269 stores were closed worldwide by Walmart due to losses faced in these stores.
Though most of the stores are currently outside the USA, the performance of the stores lags
behind their USA counterparts. Walmart failed to simply sell its “Everday Low Price” strategy
in other countries of the world. In this research, we will analyse the challenges faced by
Walmart in its International Expansion. The reason behind the Strategy of the company worked
in one country while failed disasters in other countries are analysed. Walmart is a company
which has faced success and failure in its expansion which helps us to analyse the successful
strategy and failed strategies of the company for our learning and future development purposes.
Research Trigger:
The main aim behind the research is for learning purposes and future personal development by
analysing the failure and success strategy of Walmart Company. This would help to know how
the company changes its strategy according to the requirements of different countries. Coping
with failure in other countries after having marvellous success in the home country helps to
learn about the different dynamics and strategies of the company.

Problem Statement
This research will analyse the success factors and strategy of the company similar factors or
reasons which led to failure in Germany and South Korea. Different strategy and their
implications by Walmart in different countries helps to learn in-depth management of the
company.
Research Aims
This Research would help me to improve my learning and thinking capability as it would
provide a real-time experience of the different dynamics of the business or company which are
faced for growth and expansion of the company. Managing difficult situations strategy and
learning from successful strategies provide great learning and exploration of the international
market. Through an in-depth study of the available sources or secondary data analysis would
be conducted with the usage of different techniques.
Objectives
Research would be conducted based on the SMART Method with more emphasis on the
specific and Realistic. All the information or data are realistic and specific and are only
considered in the research. This would save time and energy and with that emphasis on the
important part would be made which will give definite result at the end.
Literature Review:
Old Journal: German Politics and Society 35(1),1-18,2017
Title: Walmart goes to Germany: Culture, Institutions and limits of globalization
Author: Matthias Kaelberer
Year: 2017
Publication: Berghahn Books, Inc
Summary: Walmart has failed very badly in the German retail market which represents
numerous theories of globalization. This theory explains that dominant producers will drive
out badly performing competitors. The strategy of Walmart to provide low-cost leadership with

their lean production which was seen as a strategy to expand globally in the retail sector
drastically failed in Germany. This failure led to Walmart's exit from the German retail market
after struggling for eight years in the market. Domestic culture differences and institutions
interact to constrain convergence in a single business model in the retail industry. High labour
costs, rigidities of the German labour market and the power of the German union have also
been reasons behind the failure of the Walmart in german market.
Research gap: This research focuses on the German market whereas our research would also
consider reasons behind failure in other countries such as South Korea, Russia and European
countries. The similar reason behind the success in countries such as Mexico, the USA and
China. This research was considered brief about the factors behind the failure in Germany but
our research is based on in-depth study and information about different markets with the
changes in the dynamic. This research emphasises the effect of online sales and changing
dynamics in the stores. Our research considers this factor briefly as the company's online selling
website is developed so this might not only be the reason behind failure for the company.
Old Journal: Journal of Business Strategy 39(2), 22-29,2018
Title: Walmart’s International Expansion: Successes and Miscalculations
Author: Irma Hunt, Allison Watts and Sarah K Bryant
Year: 2018
Publication: Emerald Publishing
Summary: Walmart has made its significant presence in China, Canada, the UK and Mexico.
Walmart was successful in these countries where it has adapted its own Walmart model to the
local market directly. International expansion by joining with other local retailers has highly
impacted the growth of online shopping. The usage of technology in shopping is not
homogenous all over the world. With the increase in online retailers, it is suggested that
Walmart should slow down its brick-and-mortar in their international expansion. Walmart's
missteps in each country with the country's culture and shopping habits are discussed to find
out the reason behind the failure of the company in their country.
Research Gap: This research includes a brief regarding the success and missteps taken by
Walmart in its International Expansion by including cultural and social factors. Our research

is not only focusing on cultural and social factors but other factors which led to the failure of
the company are analysed. This provides a basis for success and misstep without emphasis on
the specific countries as we have included Germany, South Korea and Russia in failure reasons
whereas we would also analyse the success factor in successful countries such as Brazil, USA,
China and Mexico.
Research Methodology:
Philosophy: Interpretivism because it is qualitative research with multiple realities observed
in a subjective manner.
Approach: Deductive approach because the information is collected from General and based
on that specific conclusion is derived in the research.
Type of Research: Mixed Method because qualitative information is included but financial
data are included to know the percentage of profit and losses on specific location by the
company.
Data Collection Method: Secondary Methods because all the information and data are
collected through published sources and websites.
Data Source: Journals, websites and papers are included because they provide more up-to-
date and detailed information than other sources.
Analysis Tools and Technique: Data visualization for financial trends of the company in
different locations. Text analysis which would structure out all unstructured or raw
information.
Data Analysis:
Data Collection Process: information is collected from 10 sources including journals,
websites and books. Firstly, Walmart's official website is used for collecting information about
the company and its financial trends in all its countries in its annual reports. Walmart’s
International Expansion: Successes and Miscalculations, Walmart Goes to Germany: Culture,
Institutions and limits of globalization, Retail Internationalization: gaining insights from the
Walmart experience in South Korea, Conclusion: Failed Global Diffusion, Walmart’s Exit and

National Institutions, Walmart Korea: Challenges of entering in Foreign Market, Business
Analysis for Walmart, a grocery retail chain and improvement proposals, Walmart Success in
Mexico, Canada and China: Global Expansion, Strategies, entry modes, threats and
opportunities, Lessons learned from International expansion failures and success. Learning
from failure to enhance performance: a systematic literature of retail failure. Retail
Internationalization: Lessons from Big Three “global retailers” failure cases.
Data cleaning tools: All the journal and article are studied first then the required information
for our analysis are segregated from all raw information. Further, all segregated information is
precise and accurate so that glimpses of information are known easily. All financial data
information is included in Excel for the use of further graphical tools in presenting the
information. All the precise information is used in forming a research paper.
Analysing Data: All the precise information is used in the research paper. With the use of Text
analysis, all information is made in a structured format so that it would become in analysing
the information. All information is put in chronological order so that the impact of uncertainty
in the market is also included in the analysis of the company and its impact on the failure of
the company as the 2008 financial crisis has impacted all over the world and many companies
become defaulters with this incidents. Data on the losses, and sales in specific locations or
countries at specified periods are collected and analysed to know about setbacks of the
company financially.
Conclusion:
At the end of this, we can conclude that this research would be helpful for the students in their
learning process about the business and their ups and downs and changing strategy in different
locations is required. t would be also useful for the managers or small retailers in the market to
learn from the mistakes of the giant companies in forming their name internationally with the
same strategies. This research is done with in-depth information taken from different journals
and sources to learn both the success reasons and failure reasons of the Walmart Company. It
helps to know the organisation behaviour of the company in forming and changing strategy
when they are required in the market. This research also helps to learn about the dynamic of
the business in the international market.

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