Sorry for the inconvenience. Tha is the complete case with the questions The biggest retailer in theshoppers about Walmart's 'everyday low pricesmodel. In 2016, they restructured the Brazilworld has found thatoperations and closed 60 outlets, accounting forinternationalisation is5 per cent of its sales. European expansionresults have similarly been mixed. Theconsiderably moreacquisition of the ASDA Group in the UK wasrelative successful while Walmart experiencedchallenging than expansion ateight years of struggle in Germany that ended inhome.a market exit. First, they did not have enoughscale economies compared to local competitors,Walmart began its international operations 1991like Aldi, with strong relationships with Germanand today the UK, Brazil and China are theirsuppliers and already catering to price-largest markets outside the USA. Walmartconscious consumers. Second, culturalInternational is the company's fastest growingmistakes were made as customers did notunit with sales of $141bn (£85bn, €106bn) inapprove of American service practices. A third2015, accounting for about 30 per cent ofchallenge was Germany's then strict regulationsWalmart's overall sales. It included close toon location and opening hours. German workers800,000 employees in over 6,200 stores and 11also resisted Walmart workplace customs,e-commerce websites in 28 countries.resulting in labour union conflicts. Walmart's firstInternationalisation results have, however, beenAsian expansion into South Korea was similar tomixed as Walmart has struggled to understandthe German story with strong local competitionlocal buying patterns, culture, competitors andand failures to meet local customer needs. Itregulations, not the least in emerging markets.ended in exit after eight years. China has beenWalmart first entered the Americas and hasmore of a mixed picture. On the one hand, salessince expanded into ever more distanthave steadily increased - over 400 stores havegeographic markets. The early entry intobeen established and they make a profit. On theCanada and Mexico was successful, but Southother hand, the distance, both geographicallyAmerica's largest market, Brazil, has beenand culturally, was considerably larger than firstconsiderably more challenging. After twoanticipated.decades they are still losing money there. Theirchallenges include regulatory problems, strongcompetition from the French supermarket chainCarrefour and being unable to convince An early discovery was that Chinese consumersHe emphasised four initiatives: 'First, create aprefer frequent shopping trips in contrast toplatform for sustainable growth in China. ..Walmart's home-based experience whereSecond, turn around our operation in Brazil..customers drive to out-of-town stores and fill.Third, we have to rejuvenate Mexico.. .And,their cars with large multi-packs. While theyfourth we have to drive e-commerce.'encountered a completely different internationalmarket, they also faced large regional variationsSources: Dudely, R., Wal-Mart's everyday low prices fail toin this vast and multi-ethnic country. They havestir Brazilians', Bloomberg Business, 23 April 2014; S. Banjo,also struggled with local regulations and food"Wal-Mart's strategy to jump start growth in China', WallStreet Journal, 5 August 2014; A. Felsted, 'China set tosafety issues and tough competition fromremain at head of line for grocery sales', Financial Times, 23Carrefour. In a 2014 interview with the WallAugust 2015; Thomson Reuters Street Events. Wal MartStreet Journal, Walmart International PresidentStores Inc. 22nd Annual Meeting for the Investmentand CEO David Cheesewright, former CEO ofCommunity, edited transcript, 14 October 2015; L. Whipp,Walmart to close 269 stores as it revamps online presence',Walmart's UK supermarket chain Asda, admitsFinancial Times, 15 January 201to the struggles, but explained they would still bethe Walmart growth engine.QUESTIONS1. What are the internationalisation drivers Walmart International has struggled with?2. What might be the dangers for a large Western retailer in staying out of emergingmarkets?

Question

Sorry for the inconvenience. Tha is the complete case with the questions The biggest retailer in theshoppers about Walmart's 'everyday low pricesmodel. In 2016, they restructured the Brazilworld has found thatoperations and closed 60 outlets, accounting forinternationalisation is5 per cent of its sales. European expansionresults have similarly been mixed. Theconsiderably moreacquisition of the ASDA Group in the UK wasrelative successful while Walmart experiencedchallenging than expansion ateight years of struggle in Germany that ended inhome.a market exit. First, they did not have enoughscale economies compared to local competitors,Walmart began its international operations 1991like Aldi, with strong relationships with Germanand today the UK, Brazil and China are theirsuppliers and already catering to price-largest markets outside the USA. Walmartconscious consumers. Second, culturalInternational is the company's fastest growingmistakes were made as customers did notunit with sales of $141bn (£85bn, €106bn) inapprove of American service practices. A third2015, accounting for about 30 per cent ofchallenge was Germany's then strict regulationsWalmart's overall sales. It included close toon location and opening hours. German workers800,000 employees in over 6,200 stores and 11also resisted Walmart workplace customs,e-commerce websites in 28 countries.resulting in labour union conflicts. Walmart's firstInternationalisation results have, however, beenAsian expansion into South Korea was similar tomixed as Walmart has struggled to understandthe German story with strong local competitionlocal buying patterns, culture, competitors andand failures to meet local customer needs. Itregulations, not the least in emerging markets.ended in exit after eight years. China has beenWalmart first entered the Americas and hasmore of a mixed picture. On the one hand, salessince expanded into ever more distanthave steadily increased - over 400 stores havegeographic markets. The early entry intobeen established and they make a profit. On theCanada and Mexico was successful, but Southother hand, the distance, both geographicallyAmerica's largest market, Brazil, has beenand culturally, was considerably larger than firstconsiderably more challenging. After twoanticipated.decades they are still losing money there. Theirchallenges include regulatory problems, strongcompetition from the French supermarket chainCarrefour and being unable to convince An early discovery was that Chinese consumersHe emphasised four initiatives: 'First, create aprefer frequent shopping trips in contrast toplatform for sustainable growth in China. ..Walmart's home-based experience whereSecond, turn around our operation in Brazil..customers drive to out-of-town stores and fill.Third, we have to rejuvenate Mexico.. .And,their cars with large multi-packs. While theyfourth we have to drive e-commerce.'encountered a completely different internationalmarket, they also faced large regional variationsSources: Dudely, R., Wal-Mart's everyday low prices fail toin this vast and multi-ethnic country. They havestir Brazilians', Bloomberg Business, 23 April 2014; S. Banjo,also struggled with local regulations and food&#34;Wal-Mart's strategy to jump start growth in China', WallStreet Journal, 5 August 2014; A. Felsted, 'China set tosafety issues and tough competition fromremain at head of line for grocery sales', Financial Times, 23Carrefour. In a 2014 interview with the WallAugust 2015; Thomson Reuters Street Events. Wal MartStreet Journal, Walmart International PresidentStores Inc. 22nd Annual Meeting for the Investmentand CEO David Cheesewright, former CEO ofCommunity, edited transcript, 14 October 2015; L. Whipp,Walmart to close 269 stores as it revamps online presence',Walmart's UK supermarket chain Asda, admitsFinancial Times, 15 January 201to the struggles, but explained they would still bethe Walmart growth engine.QUESTIONS1. What are the internationalisation drivers Walmart International has struggled with?2. What might be the dangers for a large Western retailer in staying out of emergingmarkets?

Accepted Answer

Success in domestic market doesn't guarantee success in international markets. Differences in local…

QUESTIONS 1. What are the internationalisation drivers Walmart International has struggled with? 2. What might be the dangers for a large Western retailer in staying out of emerging markets?