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Walmart Around The World

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Walmart Around The World
Q4

In general, what do you think is the best w ay to enter a new market: acquisition, join t venture, or greenfield investment? What are the location characteristics that affect this decision? What are the firm characteri stics that affect this decision? What indust ry characteristics affect this decision?

_In general, what do you think is the best way to en ter a new market: acquisition, joint venture, or gree nfield investment?
Exhibit 3 Walmart’s Market Entry Strategy by Country/Region

Country/Region

Year

Market Entry

• Mexico

1991

Joint Venture

• Canada

1994

Acquisition

• Argentina

1995

Organic

• Brazil

1995

Joint Venture

• China

1996

Joint Venture

• Germany

1997

Acquisition

• South Korea

1998

Acquisition

• UK

1999

• Japan

2002

• Central America

2005

• Chile

2009

• Africa

2011

Acquisition
Acquisition
Acquisition
Acquisition
Acquisition

Referring to this table, we can deduce that
Walmart’s most used and successful strat egy around the world is the Acquisition of a local retailer which often opened for Wal mart doors for the local Markets. Usually t hose retailers have some quite similar ope rations strategy and core competencies th at Walmart wisely used to maintain existin g customers and steal some others from c ompetitors. What are the location characteristics that affect this decision?

_Canada: In January 1994, Walmart announced its entry into Cana da by acquiring 120 of 142 Woolco discount stores, run by the Woo lworth Corporation. This market was characterized by existing com petitors and threat of new entrance.
_Chile: Walmart entered Chile in 2009 by acquiring a controlling 58
.2% stake in successful domestic payer, Distribución y Servicio (D&
S), which was Chile’s largest food retailer. D&S stores had a large c ustomer following and ran operations similar to Walmart’s U.S. stor es. _U.K: Walmart entered the United Kingdom in June 1999 through th e $10.8 billion acquisition of Asda which operated over 200
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