International Operations : Walmart 's International Market Essay

1059 WordsDec 14, 20165 Pages
International Operations Outside the U.S. Costco has stores in Australia, Canada, Japan, Mexico, South Korea, Spain, Taiwan, and the United Kingdom. Costco’s main international market is Canada. In fiscal 2015, for example, Costco’s Canadian store was more profitable than all its other international stores combined. If its market in Canada ever failed, then this could devastate this company (Soni Part 6). Costco needs to diversify its international markets to avoid such vulnerability. Meanwhile, Kroger does not have any stores outside the U.S. (Soni Part 20 COST), and Walmart has stores in 26 other countries (Soni Part 3). Market Realist retail analyst Phalguni Soni opined that “International growth would enable [Costco] to take the concept of the warehouse club to new markets and diversify its revenue stream (Soni Part 6).” Indeed, such revenue stream diversification would create value. It also helps that Costco’s international sales are growing faster than its U.S. sales (Soni Part 11). Walmart’s international operations dwarf that of Costco’s. Given the vast number of stores Walmart has around the world, it seems obvious that these international stores are creating value for Walmart. Despite Costco’s obvious success from its profitable Canadian stores, this company’s international sales sometimes suffer when the U.S. dollar appreciates. Though, the same could be said for just about any U.S. based company operating overseas. Both Costco and Walmart should be thankful

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