Walmart’s Expansion in Africa: a New Exploration Strategy

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Perspectives on International Trade and Finance Assessment 2 – Individual Case Analysis Case Analysis Walmart’s Expansion in Africa: A New Exploration Strategy Submitted by: Pharin Chhodarangsey (Kevin) 001MG715 Date of Submission: November 4th, 2015 Submitted to: Dr. Rachaniphorn Ngotngamwong 1 Table of Contents I. Introduction 3 I. 1 Company Background 3 II. Case Analysis 3 1. Detail the growth of Walmart and its international experience. 3 2. Describe the growth strategies of Massmart in the African Continent. 5 3. Detail Walmart’s acquisition of Massmart and expected strategic advantages.5 4. Analyses the challenges Walmart have to face in the African Continent. 6 5.…show more content…
In 1967 they operated 24 stores and had a net sales of $12.6 million because of Sam Walton’ unique strategy. • Respect for the individual • Service to customers • Strive for excellence Walmart had operated different retail stores format like Discount Stores, Supercenters, Neighborhood Markets and Market side to meet customers needs and with the increased use of the internet during the 90s, Walmart launched their website that provided customers information about the products available in the stores. As the initial step, Walmart aim to expand their business, they decided to concentrate on neighboring countries like Mexico, Canada, Brazil and Argentina during the 90s through joint venture, acquisition or subsidiary. Walmart entered Mexico as the first international expansion through joint venture with Grupo Cifra SA 3 de CV (Cifra) and was called in short Walmex. After a span of 6 years with clear understanding of Mexico market, Walmart acquired a majority stake in Cifra and consolidated its position. Walmex soon promoted its retail activities in Mexico. Walmart implemented its low price model in Mexico, and concentrated in urban area. Though it faced initial hurdles from local purchasers, Walmex was successful to attract and retain its customers through daily discount strategy and offer different retail formats catering to different

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