A History of Walmart's Globalization Strategy: Strategic Wins in China, Major Struggles in Germany Case Study by Nicky

A History of Walmart's Globalization Strategy: Strategic Wins in China, Major Struggles in Germany
Explores Walmart's globalization strategy in other countries.
# 148452 | 3,630 words | 10 sources | MLA | 2011 | US
Published on Oct 26, 2011 in Business (Companies) , Economics (Globalization)


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Description:

This paper explores Walmart's opening up of stores in other countries, as well as their opening up of sweatshops. Comparing both China and Germany, the writer looks at the changes within the countries, and provides various analysis on distribution all over the globe and the effects this distribution has. In general, the paper provides a market case study of the success and failures of Walmart with the help of charts and graphs to provide analytical figures.

Outline:
Introduction
China Retailing Market Analysis
Value Chain Analysis of Walmart: Lessons Learned from 1996 to Today
Lessons Learned From the Walmart German Expansion
The Wrong Value Proposition in the Wrong Market
Walmart Strays Away from Key Organizational Resources
Purchasing Process Differences Not Taken into Account
Mergers Gone Wrong
Summary

From the Paper:

"In order for Wal-Mart to be successful in China they needed to reverse their thinking regarding market development, both geographically as well as economically. Beginning with the geographic aspects of their strategy for penetrating the Chinese market, Wal-Mart established their U.S. dominance by concentrating on rural market areas (Fong, 2009). To successfully penetrate the Chinese market, the larger population centers which had the greatest concentration of per capita disposable incomes would need to be targeted first for expansion. These are the most urban and suburban regions of the country, and comprise the majority of the population who can afford to purchase discretionary items. Unlike the U.S., China's rural regions have very high levels of poverty, virtually no infrastructure or roads, and no technological and telecommunications infrastructure, which are key to Wal-Mart's ability to manage their supply chains effectively. The greatest impediment that Wal-Mart faced in penetrating the Chinese market was the ability to automate their supply chain, logistics and IT systems. This proved to the greatest contributing factor to serving the Chinese people as well. In order to successfully penetrate the Chinese market, Wal-Mart had to first concentrate on the North China and East China areas of the nation, shown in Figure 2 below, Regional Segmentation Analysis of China."

Sample of Sources Used:

  • "Business: Heading for the exit; Retailing" The Economist 5 Aug. 2006: 54.
  • Peter N Child 2002. Taking Tesco global. The McKinsey Quarterly no. 3 (January 1): 134-144.
  • Susan Christopherson 2007. Barriers to 'US style' lean retailing: the case of Wal-Mart's failure in Germany. Journal of Economic Geography: Transnational Retail, Supply Networks, and the Global 7, no. 4 (July 1): 451-469.
  • Charlotte Dennis-Jones 2007. Retail with detail. Supply Management, May 24, 18-23.
  • Mei Fong. (2009, January 22). Retailers Still Expanding in China --- Wal-Mart, Carrefour, Tesco See Long-Term Opportunity Even as Data Indicate Recent Slackening Sales. Wall Street Journal (Eastern Edition), p. B.1.

Cite this Case Study:

APA Format

A History of Walmart's Globalization Strategy: Strategic Wins in China, Major Struggles in Germany (2011, October 26) Retrieved December 08, 2023, from https://www.academon.com/case-study/a-history-of-walmart-globalization-strategy-strategic-wins-in-china-major-struggles-in-germany-148452/

MLA Format

"A History of Walmart's Globalization Strategy: Strategic Wins in China, Major Struggles in Germany" 26 October 2011. Web. 08 December. 2023. <https://www.academon.com/case-study/a-history-of-walmart-globalization-strategy-strategic-wins-in-china-major-struggles-in-germany-148452/>

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