A Comparative Study of Walmart

6782 Words Apr 18th, 2013 28 Pages
A Comparative Study of Walmart
Operations in Canada & Mexico

Table of Contents

1. Executive Summary…………………………...………………………………...…...2

2. Introduction………………………………………………………………………….3

3. Walmart and the Canadian Marketplace……………………………..…………3

A. Country Competitiveness

B. Cultural Environment

C. Political and Legal Environment

D. Entry Strategies

4. Walmart and the Mexican Marketplace……………………………..………….10

A. Country Competitiveness

B. Cultural Environment

C. Political and Legal Environment

D. Entry Strategies

5. Summary Comparison of Canadian and Mexican Markets…………………….18

6. Recommendation…………………………………………………………………….19

7. References…………………………………………………………………………...21

1. Executive
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(Walmart, 2012) The company announced a $750 million, 73-store expansion plan in early 2012.

A. Country Competitiveness A large multinational company such as Walmart experiences different opportunities and challenges in the countries in which it does business. Walmart being the largest retailer in the world, must adapt to varying business environments. Canada’s competitiveness relative to Walmart’s expansion is viewed through Porter’s diamond framework.

Country-Level Determinants The passage of NAFTA represented an enticing opportunity for Walmart to capitalize on the discount store industry, of which only Zellers and K-Mart had a presence in. NAFTA also paved the road for Walmart’s expansion into Canada. The agreement had the intention of creating job and economic growth as well as eliminating tariffs and controls on goods transported amongst the three countries. This phenomenon of internationalization created openness and capability for Walmart to capitalize on goods production in one country, followed by movement and sales in the other. Moreover, currency valuation in present day represents an opportunity for retailers to expand into the Canadian market. Due to the strong Canadian dollar, the economic conditions are enticing for any retailer looking to expand – a key reason why Target has transitioned into the market. At the time of acquisition, Woolworth took ownership of the $45-million

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