Mgt 409 Walmart

MGT 409 CASE

Yongguang Lin

A49131013

1) Evaluate Walmart’s globalization strategy over the last two decades. Where did the retailer struggle? Where did it do well? Can location characteristics such as local competition, culture and regulations explain the differences in Walmart performance?

  According to the case, we can easily notice that Walmart in North America or speaking English are doing well, such as Mexico, Canada, Central America and United Kingdom. German South Korea and Japan were struggle. Others remained medium level.

   For Mexico, Walmart not only benefit by NAFTA but also by applying EDLP strategy in local market to gain huge success for opening a new international market. Canada has identical customer as north America which is easy to expend market. For Central America was adapting companies and kept their local identity to keep customer royalty.  For United Kingdom, Walmart reviews the companies and successfully acquainted retailer which has lots of stores.

   According to case, Walmart did really poorly in German because customers are royal to their preferred and environmental impact like regulation on pricing and location and labor union.  In Korean market, consumer prefer oriented service and different product not like the style in American shopping style as same as japan market, in addition the product in japan did not match the quality as domestic which leaded cost too high, not the Walmart strategy in America.

2) Walmart entered some countries through acquisitions, some through joint ventures and some through greenfield investment. What entry mode do you think was best? Why? Did location characteristics drive the mode of entry? Why or why not?

  From the case, we know that the most strategies Walmart used successfully was the Acquisition.  I believe Acquisition is the best because bought a company has brand in local area combine the Walmart powerful brand influence will have synergy impact. If Walmart want to use its own brand to entry a new market, it is hard and cost a lot no matter time or money to analysis the culture and local characteristics, an extinct retail store will be the first choice.

3) In 2013, Walmart decided to enter the Indian market in a joint-venture with Bharti Enterprises. Based on your analysis of Walmart’s global expansion up to that point, do you think it was a good idea to go to India? To select joint-venture as the mode of entry?

  I think going to India should be a good idea because the growth in India was dramatically both in economic and population, which had a great prospect for Walmart, powerful brand retail store to make difference. However, the strategies should use joint-venture to reduce the risk compare to entering a new market because the environment in India is not good as China or other Asian countries, although population and economic grow so fast but the majority people still have 0 buying power to stores, which lead a serious problem for Walmart to make special plan.