Walmart 's Strategy Fit The Market Environment

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Walmart begun to explore the global markets in early 1990s. Its first expansion was in Mexico, where Walmart ran its retail business as joint venture with the largest retailer Cifra S.A. in Mexico. The Walmart’s format proved to be quite successful in Mexico. Followed by year 1994, Walmart entered Canada market by acquisition strategy. In 1996, Walmart penetrate China by opening Sam’s Club and supercenter in Shenzhen, and acquisition of hypermarket chain called Trust-Mart in 2007. Walmart’s implementation of its low price and multi store formats strategy ensure its success in international expansion in these three countries.


One of the reason of successful expansion in Mexico is Walmart’s strategy fit the market environment. Mexico is an emerging market and it has a huge population of price-sensitive customer. The “Every day low price” strategy, which is the basic competitive advantage of Walmart, meet the needs of people in Mexico. Also, the Walmart’s multi store formats strategy is reinforced by its joint venture with Cifra. Cifra had operating different chains to tailor different groups of customer, for example Bodega Aurrera supermarkets for low-income customers and Superama supermarkets offer upscale products. Walmart made full use of these new formats, and in 2007 it had opened 136 new units, including 57 Bodega Aurrera, 4 Superama, 5 Suburbia, 16 Supercenters, and 6 Sam 's Clubs.
Another reason why Walmart can expand in Mexico Market is

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