FDI in Indian Retail Market Case Study to Wal-Mart Mexico Market
INTERNATIONAL EXPANSION
A Primer for Activists
WAL MART’S
Published by Wal-Mart Watch • 1130 Connecticut Ave. NW Suite 430 • Washington, DC 20036 • http://walmartwatch.com
WAL-MART’S INTERNATIONAL EXPANSION
“All around the world, we save people money, so they can live better. That’s good news – in any language.” – Wal-Mart Stores Inc.
As of May 2007, Wal-Mart’s 7,343 stores and Sam’s Club locations in 14 markets employ more than two million Associates world wide, serving more than 179 million customers a year. Wal-Mart isn’t just another company but it is the largest retailer in the United States and in the world. Since 2002, Wal-Mart has topped the Fortune 500 list, except for in 2006, when it trailed in second place behind Exxon-Mobil “but only because the world price of oil had risen 50 percent” in that year.1 WalMart’s annual revenue in 2008 was $378 billion.2 All around the world, Wal-Mart exploits people and resources, so Wal-Mart can profit. That’s bad news – in any language. As Wal-Mart seeks to capitalize on its international strategy, it is working toward building new retail empires in other countries, namely India and Russia. This primer is intended to educate activists around the world about Wal-Mart’s retail development strategies and the company’s impact on local retail culture. The three primary tactics used by the company prior to entering a country include 1.) building partnerships with local businesses and organizations 2.) working with government officials and 3.) tapping into the burgeoning middle class’s purchasing power. We have chosen Mexico and India as two international case studies to highlight what happens before and after Wal-Mart enters a country.
Protestors at Wal-Mart Shareholder Meeting in Mexico.
Credit: Global Exchange, 11/14/06
WAL-MART AND MEXICO
In looking at Wal-Mart’s ventures in other countries, important parallels and warning signs become evident. In Mexico, Wal-Mart gained access to the “rapidly
A Primer for Activists
WAL MART’S
Published by Wal-Mart Watch • 1130 Connecticut Ave. NW Suite 430 • Washington, DC 20036 • http://walmartwatch.com
WAL-MART’S INTERNATIONAL EXPANSION
“All around the world, we save people money, so they can live better. That’s good news – in any language.” – Wal-Mart Stores Inc.
As of May 2007, Wal-Mart’s 7,343 stores and Sam’s Club locations in 14 markets employ more than two million Associates world wide, serving more than 179 million customers a year. Wal-Mart isn’t just another company but it is the largest retailer in the United States and in the world. Since 2002, Wal-Mart has topped the Fortune 500 list, except for in 2006, when it trailed in second place behind Exxon-Mobil “but only because the world price of oil had risen 50 percent” in that year.1 WalMart’s annual revenue in 2008 was $378 billion.2 All around the world, Wal-Mart exploits people and resources, so Wal-Mart can profit. That’s bad news – in any language. As Wal-Mart seeks to capitalize on its international strategy, it is working toward building new retail empires in other countries, namely India and Russia. This primer is intended to educate activists around the world about Wal-Mart’s retail development strategies and the company’s impact on local retail culture. The three primary tactics used by the company prior to entering a country include 1.) building partnerships with local businesses and organizations 2.) working with government officials and 3.) tapping into the burgeoning middle class’s purchasing power. We have chosen Mexico and India as two international case studies to highlight what happens before and after Wal-Mart enters a country.
Protestors at Wal-Mart Shareholder Meeting in Mexico.
Credit: Global Exchange, 11/14/06
WAL-MART AND MEXICO
In looking at Wal-Mart’s ventures in other countries, important parallels and warning signs become evident. In Mexico, Wal-Mart gained access to the “rapidly