Wal Mart Problems When Going Globa

This report is Part 1 of assignment for Marketing MBA 565-MBOL1 to Dr. Stephen Baglione

Wal-Mart is a brand that is well known around the world, especially in the USA. It has gradually developed into the largest retailer in the world. Wal-Mart’s globalization efforts have been happening rapidly. But have they been successful in all aspects of their international expansion or not? This is the main thought that is going to be discussed in this essay. The questions I will be looking at are based on a case called “Wal-Mart takes on the world” from the book of International Business The Challenge of Global Competition eleventh edition – Ball, McCulloch, Geringer, Minor, and McNett. Questions are the following:

As the world’s largest retail store in the world, Walmart wants to be in every market that they can be prosperous in. They know they rule the United States market, so why not try to expand overseas and dominate those markets as well. Now that they have reached limits on expansion here in the U.S., the next step was to test the water in other nations. As they began to go international, there were many critics saying they will never make it because their business practices and culture wouldn’t work in other countries. Yet the company’s globalization efforts progressed at a rapid pace. Its more than 4,263 international retail units employ more than 660,000

Since 1962 and the beginning of the discount retailer market Wal-Mart has been ahead of the retail game. By 1967 there were 24 Wal-Marts that had grossed 12.6 million dollars. In just 7 years Wal-mart had spread into 9 states. By 1979 Wal-Mart was the fastest store to reach a billion dollars in sales. In 2005 Wal-Mart has 3,800 domestic stores along with 3,800 stores internationally, and had made over 312 billion dollars. As you can see the Wal-Mart empire has grown monumentally. To move into this segment of the market would be tough.

Walmart's Segmentation and Target Market Catalina Valenzuela MKT/571 February 16, 2016 Esmail Rahimian Walmart's Segmentation and Target Market Wal-Mart is a chain of retail stores that have existed for over 50 years. The store was created by Sam Walton who established his stores based on the need for best price and value shopping for everyone. The segment for Walmart is that they are discount stores that every can afford. They Wal-Mart stores come in the form of supercenters that sell a mixture of retail items, food items, service centers and specialty items.

The most significant opportunity for Wal-Mart is to acquire, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region. Global expansion has been limited in size and success. There are tremendous opportunities for future business in expanding consumer markets, such as China and India. Previous attempts by Wal-Mart were independent of existing retailers, so joint efforts may provide greater opportunity for success. In addition, new locations and store types offer Wal-Mart opportunities to exploit market development. For example, opportunities exist for Wal-Mart to continue with its current strategy of large, Supercenters, while developing more “local” and mall-based sites.

Market Trends for Wal-MartWal-Mart has to face ever changing market trends. A few of these market trends may change the market conditions of Wal-Mart. Research is compiled on trends such as market structure, the impact of new companies entering the market, prices, technology, productivity, cost structure, price elasticity of demand, competitors, supply and demand analysis, and the impact of government regulations. By discussing these market trends one can see how Wal-Mart will change or will not change, in order to continue to thrive and grow in tomorrow's economy.

As stated above, Sam 's Club was introduced in 1983 as a retail division to Wal-Mart. Sam 's Club is considered to be the nation 's leading members-only warehouse club that offers a broad selection of general merchandise and large-volume items at warehouse prices (Wal-Mart Online). However, the competition is hitting this division, which houses more than 500 warehouses nationwide. Recent headlines suggest that Sam 's Club is having a hard time competing with Costco. A number of initiatives will be taking place in order to improve the performance of Sam 's Clubs.

Walmart is one of the largest and successful retailers in the world. Walmart first launched its business to the public in 1962 with its founder Sam Walton in Rogers, Arkansas. Sam Walton’s marketing strategy is to offer low prices to consumers while earning profits though volume. (Frank, 2006) The company sells varieties of products from clothing wear to food products and more. Today, Walmart has over five thousand stores located in the United States and over six thousand stores across the nation. (Statista, n.d.) Walmart’s strategies had helped the company became a strong brand. Additionally, Walmart’s offering various products/services is the company’s strategy to expand its growth. Walmart may have experienced some negative impact but the company continues to maintain its place within the market share. In 2016, the company has earned over one hundred twenty-billion dollars from its international sales alone, while the company has earned over eighty-one billion dollars from the United States sales. (Soni, 2016)

This report is an assessment for the marketing unit in the Higher National Diploma Business Course.

Wal-Mart is the largest retailer with the revenue that is larger than 28 countries’ GDP in the world. Wal-Mart now has more than 100,000 suppliers. To be the world’s largest retailer, Wal-Mart implements the low prices and highly efficient operation strategy. The main task for them every day is to balance the holding cost and the storage cost. Besides, for an international company, Wal-Mart has to amend their strategy in order to integrate into different markets.

Wal-Mart is the leader in the retail industry in the United States. It has been the leader in its industry for a long

The market position of Walmart is very strong in the United States and in the other countries

Walmart has grown substantially over recent years, and has experienced global expansion, which only helps its prosperity. This is one of Walmart’s greatest strengths – they are recognized on the global scale and have high brand equity. Walmart is the largest employer in the United States and a retail giant that has the clout to make or break suppliers. This is strength is they have most of the power in their targeted market. Walmart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business, as well as the largest toy seller in the U.S (Jan). Suppliers often rely on Walmart purchases to keep them in business; it shows the capability of the

The three major segments which are operated by the Walmart primarily are Sam 's Club, Walmart U.S and a distinct division for Internationalisation that is Walmart International. There is also a great expansion of the company business through e-commerce (Walmart, n.d. B). Today the Company is operating with three extensive product categories units internationally: Wholesale stores, Retail centres and others. These categories are composed of numerous format including discount stores, retail websites, supermarkets, hypermarkets, apparel stores and restaurants (Walmart, n.d. C).