Globalization of Wal-Mart

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Derek Moore
9/13/12
GEB3356, Omanwa
Minicase: “The globalization of Walmart”
As the world’s largest retail store in the world, Walmart wants to be in every market that they can be prosperous in. They know they rule the United States market, so why not try to expand overseas and dominate those markets as well. Now that they have reached limits on expansion here in the U.S., the next step was to test the water in other nations. As they began to go international, there were many critics saying they will never make it because their business practices and culture wouldn’t work in other countries. Yet the company’s globalization efforts progressed at a rapid pace. Its more than 4,263 international retail units employ more than 660,000 associates in 15 international markets. Their international sales have made up over 24.7 percent of the company’s total sales. This is expected to increase substantially over the next decade. (International business 13th edit, pg. 251) Why has Walmart viewed international expansion as a critical part of its strategy? They feel this way because they are realizing that they are facing limitations to its growth here in the states. They realized the need to look for other opportunities elsewhere. As a world leader, they felt the obligation to go international. Walmart prides itself on the commitment and dedication to its employees. They had something to prove. They had to prove themselves to the market along with fulfilling the expectations of the employees at the same time. They had to increase its sales and profit to make such a statement. They have gotten so large here, that there was nothing else to do but go international. They were successful in Latin America and Canada, so they might as well move to Asia and Europe. As they continue to expand, their relationships and partnerships with large retailors make it a little easier to expand. They utilize the existing wholesale companies and partner up until they learn how to operate in...
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