Business and the Global Economy: Why Is Wal-Mart Successful - Essay Example

The company grew rapidly and crossed domestic borders when it opened its first store near Mexico City in 1991(n.d.).Today, Wal-Mart operates in 14 countries outside of the U.S and its expansion doesn't seem to halt here. Wal-Mart is constantly succeeding as an international corporation and is in the race for global retail supremacy with other firms like Carrefour and Walgreens. What is it that has made Wal-Mart the king of the retail industry Along with its extensive local marketing, Wal-Mart has also seen success in expanding overseas through its unique market entry mode?

In recent years, Wal-Mart has adopted a very different strategy to expand both locally and globally through the use of supercentres. Wal-Mart's ideas of a supercentre have been very rewarding to the company and its overall objectives. Before though, Wal-Mart used to have general merchandise in its stores, but with the introduction of supercentres, it has expanded into dairy products, frozen seafood, meat and poultry, banks, small businesses, and fast food chains. Some Wal-Mart locations have gone even further by adding gasoline services outside the supercentre.

Wal-Mart has created a culture of, "everything under one roof", which has been the key factor in Wal-Mart's success in the retail industry over the years. Furthermore, Wal-Mart's global expansion has been pretty smooth because of its fundamental objective of providing more for fewer bucks. According to Walmart's official site, Wal-Mart thinks globally but serves locally. This is a very important concept in today's uncertain business environment where satisfying customer needs is the key to success.

Wal-Mart sells those products which customers want and above all, it sells everything at a price that is affordable for all. Many companies stress the quality and not the quantity (price), but given today's economic situation, everyone loves to get the same thing at a cheaper price. I feel that the current financial crisis has helped Walmart even more as more people tend to buy products at cheaper prices. Wal-Mart's slogan says it all, "Save money, live better".Let's take a case for Wal-Mart's latest international venture.

Wal-Mart opened its first discount wholesale store in India in May 2009 and has decided to open around 15 more in the next seven years (n.d.). In India, Wal-Mart is operating as 'Best Price Modern Wholesale' to divert the attention of Wal-Mart's protestors in India. According to Times Magazine, 'Indian commercial law prohibits most foreign companies from setting up shop to compete with domestic retailers. (2009) Other than that, Wal-Mart's customer care culture has also developed its image as one of the most admired companies today.

Wal-Mart follows the 10-Foot rule which explains to every Wal-Mart employee that whenever you see a customer within 10 feet, speak to them and offer them your help (n.d.). All of the above distinguishes Wal-Mart from other companies and makes it a leader in international business. Wal-Mart provides excellent service, works hard to get everything done on time, and strives for excellence. These are some of the unique qualities that Wal-Mart has adopted to grow big and continue its expansion.