The Globalization of Wal-Mart

Paper Summary:

The paper discusses Wal-Mart's failures in Germany, South Korea and Indonesia and their successes in Mexico, Brazil and China. The paper looks at a potential entry into the Indian market but predicts that this expansion may duplicate the company's unsuccessful experience in Indonesia.

From the Paper:

"One of the company's more stunning failures was its effort to enter the market in Germany. Various reasons have been given for why the company in 2006 elected to close its 85 German stores after failing to become profitable after eight years, including some in which their annual losses had run over $100 million (Landler). Some cite cultural differences. Wal-Mart staffed its German stores with American managers, leading to small but costly mistakes. Germans reportedly prefer brusque efficiency to exuberant American friendliness. Wal-Mart reportedly offended Germans by having grocery store personnel bag customers' groceries for them, and by having employees constantly smile at customers (Nussbaum; Landler)."

Sample of Sources Used:

• Bhatanagar, Parita. "Wal-Mart's Hot on India." Cnn.money.com. Dated 6 June 2005; accessed 20 May 2007; available at <http://money.cnn.com/2005/06/06/news/fortune500/walmart_india/>. Internet.
• [Bloomberg News], "Wal-Mart says it will sell S. Korean Supercenters for $869 million. " The Benton County Daily Record. Dated 6 June 2006; accessed 20 May 2007; available at <http://walmart.nwanews.com/ wm_story.php?storyid=35579&section=shareholder>. Internet.
• Featherstone, Liza. "Will Labor Take the Wal-Mart Challenge?" The Nation. Dated 28 June 28 2004; accessed 20 May 2007; available at <http://www.thenation.com /doc.mhtml?i=20040628&s=featherstone>. Internet.
• Greenhouse, Steven. "Human Rights Watch says Wal-Mart has broken labor laws." International Herald-Tribune. Dated 1 May 2006, accessed 20 May 2007; available at <http://www.iht.com/articles/2007/05/01/news/walmart.php>. Internet.
• Landler, Mark, "Wal-Mart gives up Germany." International Herald-Tribune. Dated 28 July 2006; accessed 21 May 2007; available at <http://www.iht.com/articles/2006/07/28/ business/walmart.php>. Internet.

More papers on The Globalization of Wal-Mart:

• Term Paper # 133721 : "The Globalization of Wal-Mart"
• Case Study # 148452 : "A History of Walmart's Globalization Strategy: Strategic Wins in China, Major Struggles in Germany"
• Analytical Essay # 128411 : "Managing the Risk of Globalization"

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