Tamara Garwood
American InterContinental University
Abstract
Many companies are egger to expand their operations international in hopes of flourishing abroad. They under estimate what is needed to be successful in the international market as well as challenges they may encounter. This paper will discuss those challenges and ways in which to ensure a successful transition into the international market place.
International Operations & Expanding Globally Wal-Mart is considered the largest retail store in the United States. It is a company that has set goals on maintaining low prices while encouraging growth and expansion. They have gone from being recognized domestically, to spreading their retail techniques into the international level. With this said this is the perfect organization to analyze the pros and cons of global expansion. This will provide the perfect scenario as what to do and not do in the process of going global.
The company has the notion that spreading operations internationally will provide the organization with what it needs to maintain its market standing. This of course would be in the event of a downward spiral of sales, in the United States which has occurred lately due to the recession. With this said the company is striving to open even more stores internationally with 25% of its sales already coming from this segment (Bartels, C., 2010, June 4). The international segment is striving to grow to reach the quest for the number one spot as retailer. This includes not only in the U.S. market but worldwide.
The question at hand is what are the challenges the organization has or will face and the best way to handle these issues. Walmartstores.com: Investor Relations - Walmart Updates Growth Plans states: The challenges include but are not limited to “Walmart stores general economic conditions, including the effects of the current economic crisis, competitive pressures,
References: Walmartstores.com: Investor Relations - Walmart Updates Growth Plans. (n.d.). Walmartstores.com: Investor Relations - Investors. Retrieved November 4, 2011, from http://investors.walmartstores.com/phoenix.zhtml?c=112761&p=irol-newsArticle&ID=1345359&highlight Bartels, C. (2010, June 4). Wal-Mart has eye on global expansion - Business - US business - msnbc.com. msnbc.com - Breaking news, science and tech news, world news, US news, local news- msnbc.com. Retrieved November 4, 2011, from http://www.msnbc.msn.com/id/37509252/ns/business-us_business/t/wal-mart-has-eye-global-expansion/