Walmart

Question 4 :

Going outside the United States, Walmart has had a special internationalization strategy. Indeed, to carry out its strategy , Walmart had two distinct ways :

-The first approach was to locate a store chain that could acquire Walmart. This of course was a success since Walmart was able to set up local brands and have an existing customer base like Canada or England.

- The second approach of the group was the Joint- Ventures has since served in fairly inaccessible markets such as China countries orMexico.

This set up the policy of internationalization has enabled Walmart to be present all over the globe , be it in America, Asia or Europe.

Once Wal-Mart had selected the country or countries to enter, it needed to determine the appropriate mode of entry. Every company making this move faces an array of choices: It can acquire an existing player, build an alliance with an existing player or start greenfield operations, either alone or in partnership with another player.

Canada :

Wal-Mart entered Canada through an acquisition. This was a logical move for three reasons. First, Canada is a mature market - an unattractive situation for greenfield operations, since adding new stores (i.e., new capacity) will only intensify an already high degree of local competition. Second, because there are significant income and cultural similarities between the United States and Canadian markets, Wal-Mart faced relatively little need for new learning. Thus, entering through a strategic alliance was unnecessary. Third, a poorly performing player, Woolco, was available for purchase at an economical price. Furthermore, Wal-Mart's business model was precisely what Woolco needed to transform itself into a viable and healthy organization.

Mexico :

For its entry into Mexico, Wal-Mart took a different route. Because there are significant income and cultural differences between the United States and Mexican markets about which the company needed to learn, and...