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International Business Strategy: Wal-Mart in India - Case Study Example

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This work "International Business Strategy: Wal-Mart in India" describes an analysis of Walmart's business strategies in India. The author outlines the company's main strategies, firm motivations for internationalization. It is clear that the government and consumers of India will see the benefits of a low price store in their midst…
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International Business Strategy: Wal-Mart in India
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Download file to see previous pages Wal-Mart is a U.S based Multinational Corporation, which operates chains of warehouse stores and discount departmental stores in the U.S and 15 other countries. The company is listed on the NYSE and is reported to be the world’s largest public corporation by revenue (Forbes Global 2000 as cited in Hayden et al, 2002).
Wal-Mart has 8500 stores in 15 countries and has been mostly successful in its venture into the global market. Once asked if Wal-Mart was trying to take over the world, the reply from one of the senior heads from Wal-Mart, with a smile on his face, was, “I don't think so, and all we want to do is grow”. This has been evident from the aggressive growth and expansion strategy adopted by Wal-Mart both within and outside the U.S. It has been expanding with massive momentum, with the strategy of “Always Low Prices Always” and has taken over the retail industry in many countries. However, it has stumbled in its smooth expansion in countries like Germany, where Wal-Mart became a textbook case of “how not to enter a foreign market” (Peng, 2009). The success of Wal-Mart in its home country and a variety of other markets like Argentina, Brazil, Britain, Canada, China, Japan, Mexico, and Puerto Rico do not seem to have translated into the German market and therefore, Wal-Mart’s expansion plans must be carefully evaluated before giving them a green signal. Wal-Mart knows that venture into India will not be an easy feat because of the market dynamics.
Internationalization has always been a risky move. Wal-Mart’s failure in Germany or its initial struggle in Mexico clearly indicates that expansion abroad should be carefully evaluated to see whether going abroad is warranted.
Wal-Mart falls in cell 3 and may be termed as slow as it internationalizes. The company is still in exploring locations in the U.S. In 2010, it opened about 600 international stores, while only about 150 in the U.S. However, its pace of internalization is slower than some of its competitors, like Carrefour in France, or Metro in Germany. According to John B. Menzer, Wal-Mart India’s President and CEO, "India is a sensitive market so we will be devising our strategy for her carefully…Retailing is like a game of three-dimensional chess where we operate as a player from every aspect, so depending on the needs of the market we shall change and adapt". ...Download file to see next pages Read More
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