3. Walmart (officially Wal-Mart Stores, Inc. ) is a U.S. multinational that
specializes in retail , founded by Sam Walton and now headed by his
eldest son, S. Robson Walton .
Founded under that name in 1962 ,
In 2010, with sales amounting to 421.849 billion of U.S. dollars and 16.389
billion dollars in profits 6 , Walmart has retained its position as the world
leader in terms of turnover. With 2.1 million employees working in over
6,100 supermarkets and hypermarkets (as well as in subsidiaries),
Walmart is the largest general retailer in the United States with 3,500
stores and 20% estimated market share and the largest distributor of toys
with a 45% estimated market share, having surpassed Toys "R" Us in the
late 1990's .
4. International expansion in 1991 begins with Mexico
in response to market saturation in the US
Localization strategy adopted after trial and error the
strategies of U.S. market did not work well initially
due to difference in consumer habits.
They hired local managers , they adapted to smaller stores to
reach remote customers with different buying needs as
compared to U.S.
Walmart’s Persistence paid off , Mexicans changed their
shopping habits.
5. UK , Germany and South Korea.
Head to head competition from local giants.
Discount strategy did not work well due to
cultural demand of high quality merchandises.
They pulled from Germany and South Korea in 2006 but
stayed in UK.
They changed international market strategy to less
competitive markets.
6. Identify more suitable
markets and adaptablity to
modify local strategies as
per the need of culture is
the formulae behind the
Walmart’s International
success.
7. U.S. Totals 1568 1258 525 49
Grand
Totals 2510 1496 596 86
9. In 1996 Walmart slowly entered China , while trying to adapt to Chinese
culture and merchandise needs.
American Culture versus Chinese culture.
Walmart learned to allow unions in China as an exception to secure social
order as per communal system.
In 2006 Walmart bought 35 percent stake in Trustmart chain which has more
than 101 hypermarkets across China
Is it on Track ?
http://www.youtube.com/watch?v=hOUnCppzisk