Walmart Stores Inc: International Expansion and Strategy Analysis

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Introduction Wal-Mart Stores Inc. is a renowned American multinational retailer company that owns chains of large discount warehouse stores and department stores. The founder of Wal-Mart was Sam Walton, who in 1969 incorporated and then openly traded on the platform of New York State Exchange in the year 1972. In the year 2009, it produced 51% of $ 258 billion sales in America only from grocery trade (Zimmerman, 2010). There are 8500 stores owned by Wal-Mart, in 25 countries and under 55 different names (Daniel, 2010). Early International Expansion and Strategies The operations of Wal-Mart were confined to the U.S. until 1991, because it had successfully established a competitive advantage that was based on the combination of competent merchandising and advanced human relation policies. According to their initial strategies, the first international store of Wal-Mart was opened in Mexico. This was a strategic move as Wal-Mart opened this store as a joint venture with Cifera, which was the largest local retailer. Wal-Mart did not find any such opportunity for a joint venture in Europe or Canada and therefore the incorporation adopted the Mexican operations in order to match the local environment. At first, because of the not so good infrastructure of Mexico and a shortage of local suppliers, Wal-Mart was unable to deliver directly to stores and distribution centers owned by Wal-Mart that caused a lot of stocking problems and therefore resulted in raised costs and

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