Tasha Haight

Professor Shapero
International Management
October 9, 2014
Walmarts Global Strategies
1. Walmart did not choose to expand into Europe or Asia because Walmart lacked the
requisite financial, organizational, and managerial resources to pursue multiple countries
simultaneously (Walmart Early Internationalization 265). Walmart also did not choose to
expand to Europe because the current European retail market was mature, competitors
would retaliate, and the foreignness would be more harmful than helpful. Asia was too far
away and differently cultured. Walmart did however choose to expand into Canada and
Mexico because Walmart decided to concentrate on the Americas. This approach was
logical as it would allow it to apply the learning gained from its initial entries to
subsequent ones (Walmart Early Internationalization 265).
2. Walmart had many struggles financially along with its successes. Germany proved to be
very costly and was very culturally different. Because it was run by American managers,
when offered smiles or to bag groceries, Germans often were upset. Here, Walmart
quickly learned the cultural differences. Other grocers like Aldi and Lidl also interrupted
Walmarts possible successes. In Japan, Walmart also faced many issues. Most Japanese
lived in small apartments and had no use for items sold in bulk and Seiyu managers
resist[ed] its initiatives to a tendency among Japanese shoppers to equate low prices with
inferior products (Mixed Results in Europe and Japan 268). Because of this, prices
dropped, stores were closed, corporate staff was laid off, and the everyday low prices
came to be instead of weekly specials. While Walmart might not have had much success
in Germany and Japan in the beginning due to cultural difference and financial issues,
Mexico and China had much success. In Mexico, Walmart joined up with Cifra and other
Mexican stores already established. When Walmart opened a bank in Mexico, it added
much-needed competition to the financial services industry (Success in Mexico and
China 267). In China, they partnered with Bounteous Company Ltd and introduced a
more hands-on shopping experience (Success in Mexico and China 267). By partnering
with these already existing companies in the countries Walmart expands to, it gets a more
cultural feel for the country and can therefore implement things based upon that culture
that will ensure success.
3. In 2005, Walmart focused on Latin America, specifically Guatemala, El Salvador,
Honduras, Nicaragua, and Costa Rica. Walmart also focused on Brazil and Chile. To
expand into such countries, Walmart bought shares into companies in the Central
American countries, stores in Brazil, and stakes in Chile. This strategy is very financial
and Wall Street-y with all the investments. The offering of financial services also adds to
Walmart success in Latin America. Walmart has had the opportunity to open several
stores in each country, despite a market that has long been inhospitable to foreign
retailers in Chile (Refocusing on Latin America 268).

4. Although already established, Walmart continues to focus on Brazil. Spending on food is

expected to increase as the middle class also increases. Walmart is investing heavily to try
to make it to the top in Brazil. In 2009, Walmart was the 3rd largest retailer in Brazil.
Walmart also wants to expand into India. India mostly has small family-run vendors, yet
is one of the worlds fastest growing retail markets, along with Russia (which Walmart
also wants to expand to). Walmart has signed up with Bharti Enterprises to get around
government restrictions and sell to the small businesses, technically. A lot of the potential
of India comes from its highly educated work force. In Russia, corruption is rampant
(India and Russia 270). Walmart also has rivals in Russia, but is actively seeking a
partner to expand into Russia with.
Canada is also on Walmarts expansion list. Walmart is already 3rd largest employer in
Canada but it wishes to expand stores and open distribution centers. Despite its growth
in Canada, Walmart is not without competition (Canada 271). Target and other
companies are a large threat to Walmart in Canada.
The last place Walmart is focusing on expansion is in South Africa. In South Africa,
Walmart would partner with Massmart, which has a strong presence catering to a range
of customers (South Africa 271). This would then place them ahead of their European
competition.
Walmart has already expanded into several countries. It would be vital for Walmart to
expand into Russia and India like it is doing, and South Africa like it plans on doing. This
would ensure all the major regions of the world are covered in Walmarts.
5. When first accused of being involved in factory fires in Bangladesh, Walmart
inappropriately tried to deny having a presence there. However, when yet another fire
erupted in Dhaka, Walmart announced their signing of the Bangladesh Worker Safety
Initiative to ensure factory safety in Bangladesh (Continued Challenges 272). Bipartisan
Policy Center will oversee this appropriate and adequate solution and agreement. Obama
then unfairly banned trade privileges with Bangladesh, adding to the continued struggle
of managing global companies.