Walmart Mexico Adventure

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Views: 119

Words: 483

Pages: 2

Category: Business and Industry

Date Submitted: 04/13/2014 03:49 PM

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Firstly before answering this question, we should consider what the main things are for one international company leading for success. 

There are number reasons why the corporation succeeded in the expansion. The cores are the two main elements coming from the external and internal sides 

l External side 

The environment represents the set of uncontrollable forces to which the firm must adapt its marketing mix. 

1) Economic environment 

International expansion is affected by the economic environment in two respects by the global economy and secondly by the individual economies of the targeted countries 

A. Government policy and regulation; the change of government 

a. The balance of payments of one country measures the flow of the transaction between residents of that country and the residents of the rest of the world over a period of time 

b. the tariff and quotas and protectionism are the restrictions to protect local market 

c. Stable economic environment and continuous economic growth is the basic reason for some company looking for where is right place for the international expansion. 

d. The government economy policy of trade and investment, monetary policy 

e. living and consumption standard 

B. International institutions and agreement 

The trend to free market will help the company to fulfill the international strategy, otherwise it will become the big barrier. The segment market defined is very important for one company strategy expansion 

) Political environment 

Political conflict may be lead to instability, but it may or may not affect business operations. 

) Social Cultural environment the language and habits are the typical things, which the international expansion is facing. This will contribute to the formats of distribution system and purchase chain. 

4) The legal environment 

Legal system does vary from country to country in terms of their complexity, interpretation and application and the...