Walmart
Disc 6: Walmart
Set 1
1. What were some of the cultural issues Walmart faced as it entered each of the international markets it entered?
In Mexico, China and United Kingdom the effort to offer lower prices initially backfired because of resistance from established companies. In Germany, they were not able to fit its model to the local taste and preference. They also offered to bag groceries and instructed clerks to smile at customers which weren’t common in the culture. In Japan, bulk products were offered which was not helpful because of the small living spaces.
2. Which early strategies succeeded and which failed? Why?
Germany failed because stores were geographically dispersed and often in poor locations. They also lacked presence in towns where competitors were strong.
South Korea failed because they were not able to match consumer taste, destitution problems arose and customer strong loyalties to other brands.
Mexico succeeded by entering in a joint venture with the Mexican conglomerate Cifa.
United Kingdom succeeded by acquiring Britain’s third largest food retailer ASDA.
Japan succeeded after spending about 1.2 billion dollars, closing stores, cutting corporate staff and slashing expenses. They started offering meals to go and everyday low prices instead of weekly specials.
China succeeded when they decided to use a two beachheads approach for establishing a presence in Asia.
Brazil succeeded by purchasing 331/3 percent interest in Central America’s largest retailer.
3. What lessons did Walmart learn from its experience in Germany and Japan?
In Germany Walmart learned is could not solely rely on its low prices to be successful.
In Japan they learned that not all customers equate low prices the same and that bulk items did not work well with every customer.
Set 2
1. How would you characterize Walmart’s Latin American strategy?
Walmart was lacking financial capital, manager and organizational resources to
Set 1
1. What were some of the cultural issues Walmart faced as it entered each of the international markets it entered?
In Mexico, China and United Kingdom the effort to offer lower prices initially backfired because of resistance from established companies. In Germany, they were not able to fit its model to the local taste and preference. They also offered to bag groceries and instructed clerks to smile at customers which weren’t common in the culture. In Japan, bulk products were offered which was not helpful because of the small living spaces.
2. Which early strategies succeeded and which failed? Why?
Germany failed because stores were geographically dispersed and often in poor locations. They also lacked presence in towns where competitors were strong.
South Korea failed because they were not able to match consumer taste, destitution problems arose and customer strong loyalties to other brands.
Mexico succeeded by entering in a joint venture with the Mexican conglomerate Cifa.
United Kingdom succeeded by acquiring Britain’s third largest food retailer ASDA.
Japan succeeded after spending about 1.2 billion dollars, closing stores, cutting corporate staff and slashing expenses. They started offering meals to go and everyday low prices instead of weekly specials.
China succeeded when they decided to use a two beachheads approach for establishing a presence in Asia.
Brazil succeeded by purchasing 331/3 percent interest in Central America’s largest retailer.
3. What lessons did Walmart learn from its experience in Germany and Japan?
In Germany Walmart learned is could not solely rely on its low prices to be successful.
In Japan they learned that not all customers equate low prices the same and that bulk items did not work well with every customer.
Set 2
1. How would you characterize Walmart’s Latin American strategy?
Walmart was lacking financial capital, manager and organizational resources to