WALMART SUCCESS IN MEXICO CANADA AND CHINA GLOBAL EXPANSION STRATEGIES ENTRY MODES THREATS AND OPPORTUNITIES FINALIZED

WALMART SUCCESS IN MEXICO, CANADA AND CHINA:
GLOBAL EXPANSION, STRATEGIES, ENTRY MODES, THREATS
AND OPPORTUNITIES

Lee Yee Mun
B1000922
Help College Of Arts and Technology
Bachelor of Science in Collaboration with Southern New Hampshire University, USA [e-mail] Rashad Yazdanifard
Faculty of Management, Multimedia University,
Cyberjaya, Malaysia. [e-mail] 1

ABSTRACT
Global expansion has been gaining a lot of attention. There are many important factors to be considered in the decision-making process such as business strategies, entry modes, and threats and opportunities in the markets. Appropriate strategies will minimize the risk of failure in international markets. The right business strategies and entry modes employed will increase the firm’s chances of success and influence the future of the retailer.

Key words: global expansion, business strategies, entry modes, threats, opportunities, Walmart

1.

Introduction

The internalization of the retail industry has been researched widely, and majority of these studies have described the motivations and scales for international expansion by retailers (Akehurst & Alexander, 1995;
Williams, 1992). Many models of internalization explains the sequence of foreign expansion, showing that companies who go international will do better in foreign markets that are similar to their domestic markets.
This was why Walmart chose to enter the markets of Canada and Mexico (Johanson & Vahlne, 1977).
There are several reasons why international retailing became popular. Some of these reasons are, the domestic market is saturated, and there is a need for larger diverse investments, economic pressures, and external and internal forces that compel retailers to enter new markets. It is therefore important for the retailer to choose the right market entry strategy into the international markets (Sternquist, 2007). Several research studies have concluded that retailers can minimize the risks of entering new

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