The Globalization of Wal-Mart: Why International Expansion is a Critical Part of a Strategy
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The Globalization of Wal-Mart
Why International Expansion is a Critical Part of a Strategy
Wal-Mart faced challenges with growth and was forced to look into foreign markets and hence made globalization efforts in the expansion. It took advantage of the emerging markets as a tool for expansion with a deliberate entry strategy for the markets (Ball, Geringer, Minor, McCulloch, & McNett, 2013). Due to organizational incapacity, the company started the expansion with the emerging markets in its area. It saw the international expansion as a chance that would help it manage the differences in culture and income and leverage its learning. The global development thus was an opportunity for its better expansion against the local difficulties.
Achieving Success in Canada and Latin America and Failure in Europe
Wal-Mart entered Latin America and Europe through acquisition and encountered no much competition in Canada. In Canada, it controlled of a third of industry market and was the second largest in the United Kingdom (Ball, Geringer, Minor, McCulloch, & McNett, 2013). The limited European infrastructure hindered the success of the company in the European market as compared to the Canadian market. The experts were not familiar with the German language, and the company suppliers in the country were not vast with the company practices. Wal-Mart also faced opposition from the competitors and regulators, hindering its operations.
Ensuring Success in China and India
In China, the business needs to learn the way it is conducted and take into consideration all the compliances. Since the customer behavior there differs from its home base, it needs proper learning of their expectations and demands and responds to such. Same as India, the company has to comply and learn the local chains and demands, availing what will sell to consumers. Engaging the local suppliers and availing more of local goods is best for success.