Walmart Foreign Expansion - Case Study Example

1. Walmart was successful in Mexico as a result of the fact that it quickly discovered that the buying behaviour of Mexicans was different from Americans. The joint venture with Cifra, Mexico’s largest retail shop also paid off well for Walmart. The Mexicans preferred to buy fresh produce from the local stores and Walmart adjusted its strategy to meet the local conditions. It also embarked on hiring local managers who understood Mexican culture and these managers were responsible for controlling the merchandising strategy.

These managers also helped in building smaller stores that people could visit and offering more fresh produce. Walmart gradually changed the Mexican merchandising culture to American as it expanded its operations in this country. It customized its products and it lowered their prices which resulted in Mexicans changing their shopping habits as they begat to visit large retail shops. This attributed to Walmart’s success in Mexico.2. In order to succeed in China, Walmart should adapt to the Chinese culture so that it can mesh it with its merchandising strategy.

For instance, Walmart has discovered that the Chinese prefer that fresh food be harvested in front of them and this is the exact strategy that it has adopted. Walmart has also discovered that in China, success requires it to embrace unions and it has adopted this strategy which is in stark contrast to America where unionization is opposed. This has positively contributed to the company making inroads in China. 3. It is quite challenging for a company such as Walmart to change the culture of the nation where it is doing business.

Consumers in different nations have their own culture which may not be easily changed. However, in order to be successful in such nations, it is imperative for the company to adopt the local people’s culture and try to mesh it with its strategy. This is likely to appeal to the interests of the customers rather than fully changing their culture which they will resist.