Wal Mart 's Choice Of Countries During The Early Stages Of International Expansion

1037 WordsAug 10, 20155 Pages
Why do you think Wal-Mart did not venture abroad until 1991, despite its success in the USA? Ans. Until then they were happy enough simply to expand their business in US, after that reached a certain size and the company had the management time to spend on it then it was time to think about replicating that success abroad. Because the markets abroad are much more competitive than in America where it is a slayer of small businesses, except for fresh produce sellers. Globalization has taken off in recent years, before the turn of the century it was much more difficult and expensive for franchises to efficiently expand outside of their native country. Q2. How would you explain wal mart choice of countries during the early stages of international expansion in the 1990 's. Ans. Internationally, the retailer operates in Mexico, Canada, Argentina, Brazil, China, Korea, Germany, and the United Kingdom. Its expansion strategy internationally has been aggressive and powerful. The latest expansion strategy is for the company to gain entry into a nation by corporate takeover of a national retailer. Once the company is bought, Wal-Mart converts the stores into Wal-Mart stores. Three countries, all with no previous Wal-Mart stores, became part of the corporation 's international presence when domestic retail chains were overtaken. In 1994, Wal-Mart bought 122 Woolco stores in Canada; today there are 196 units in Canada. In 1998 Wal-Mart bought the Wertkauf store with 21 units, now there

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