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Case Discussion Wal-Mart

• Analyze the reasons for Wal-Mart‘s decision to go global • Evaluate the decisions of Wal-Mart to enter the German market. Which were the pro‘s, which where the con‘s- in general and with respect to the major (competitive) forces

Competitors Clients Suppliers Workforce Other external and internal conditions

• Which cultural problems did Wal-Mart encounter when they entered Germany? Which mistakes did the management make? • Imagine, you are a consultant for a major Asian retail chain in a market expansion projects. Give recommendations with respect to the following questions:

- Should they enter the German market? - If yes, how should they enter the market


Mai-10 Dozent, Semester Unternehmensführung Prof. Dr. Silke Bustamante 1

Wal-Mart-Short profile

• Wal-Mart's retail divisions include Wal-Mart Supercenters, Discount Stores, Neighborhood Markets and SAM'S CLUB warehouses. • The first Wal-Mart opened in 1962 in Rogers, AR. • Wal-Mart employs 1.8 million associates worldwide in more than 3,900 stores in the US and more than 2,700 throughout the rest of the world. • The Company has operations in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South Korea and the United Kingdom. • The company's securities are listed on the New York Stock Exchange and NYSE Arca, formerly the Pacific Stock Exchange, under the symbol WMT.


Mai-10 Dozent, Semester Unternehmensführung Prof. Dr. Silke Bustamante 3



Financial situation


Mai-10 Dozent, Semester Unternehmensführung Prof. Dr. Silke Bustamante 4

Reasons for expansion

• • • • • • Saturated market in US + strong cometition (k-Mart) More and more competition loss of market share Only 4% of population in US great potential Decreasing entry barriers due to globalization Experience in home market Transfer of EDLP concept was thought to be successful in...

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