Wal-Mart Takes on the World Summary
Intl Business 338 10, September, 2010
Wal-Mart takes on the World
The following paper is a summary of how Wal-Mart has faced limited growth on American soil, was forced to look else- where for growth opportunities, particularly in foreign countries, where market shares were already established. Wal-Mart found itself facing political, ideological, cultural, and technological barriers in its attempt to enter the markets on foreign soil. Wal-Mart deliberately selected emerging markets as a starting point for international expansion (pg.395). In Latin America, Wal-Mart targeted large growing populations like in Mexico, Argentina, and Brazil; in Asia, it sought out China. Wal-Mart used a 50-50 joint venture to help in the entry into Mexico, because of culture and income differences. Instead of opening new stores they acquired existing supermarkets (Rowell). In Brazil they went in on 60-40 venture, learning from Mexican deals. When they entered Argentina, they went in owning 100 percent stakes basis. Wal-Mart had to learn the Do’s and Don’ts of each market entered (pg 396). In Asia, Beijing restricted the operations of foreign retailers. These restrictions included requirements for government-backed partners and limitations on the number and location of stores. Again, Wal-Mart went into China with a joint–venture. Wal-Mart had many miscues in doing business in China, for instance households in China have very different products than in North America. Shopping lists are not as big as U.S. based consumers. Items of regular use in North America are not even known in China (pg. 396). The Supply Chain in China is primitive; partly because of cost and quality remain the priority . Supply Chain knowledge, execution and talent are the main reasons why China is slow to adapt. In the United States, smaller towns have a homogeneous customer base and a standard of living that supports the market and a
Wal-Mart takes on the World
The following paper is a summary of how Wal-Mart has faced limited growth on American soil, was forced to look else- where for growth opportunities, particularly in foreign countries, where market shares were already established. Wal-Mart found itself facing political, ideological, cultural, and technological barriers in its attempt to enter the markets on foreign soil. Wal-Mart deliberately selected emerging markets as a starting point for international expansion (pg.395). In Latin America, Wal-Mart targeted large growing populations like in Mexico, Argentina, and Brazil; in Asia, it sought out China. Wal-Mart used a 50-50 joint venture to help in the entry into Mexico, because of culture and income differences. Instead of opening new stores they acquired existing supermarkets (Rowell). In Brazil they went in on 60-40 venture, learning from Mexican deals. When they entered Argentina, they went in owning 100 percent stakes basis. Wal-Mart had to learn the Do’s and Don’ts of each market entered (pg 396). In Asia, Beijing restricted the operations of foreign retailers. These restrictions included requirements for government-backed partners and limitations on the number and location of stores. Again, Wal-Mart went into China with a joint–venture. Wal-Mart had many miscues in doing business in China, for instance households in China have very different products than in North America. Shopping lists are not as big as U.S. based consumers. Items of regular use in North America are not even known in China (pg. 396). The Supply Chain in China is primitive; partly because of cost and quality remain the priority . Supply Chain knowledge, execution and talent are the main reasons why China is slow to adapt. In the United States, smaller towns have a homogeneous customer base and a standard of living that supports the market and a
References: – CiteWrite. For help using CiteWrite, click on the Help menu in CiteWrite. If you just have a few works to cite, you can use these examples to type them by hand: Anderson, Frank J. An Illustrated History of the Herbals. New York: Columbia University Press, 1977. Gardener, Edwin D., Elizabeth Miner, and G. D. Royans. "Heretics." 16th Century England. Ed. Samuel Nevins and Lisa Bointer. London: Methaneon, 1988. 327-84. "Get Fit in Seven Days." Health and Medicine. 2006. Society of Heart Physicians. 26 Mar. 2006 . Myers, Bethany. "Public Ritual." Citizen Forum 8 (1922): 221-29. Delete this text before you turn in your paper!