Wal-Mar Global Expansion Strategy

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Wal-Mart Stores, Inc.

Wal-Mart: Global Expansion Strategy

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Table of Contents

A. Introduction B. Wal-Mart Stores Inc. 1. The Adolescence of Wal-Mart 2. Channel of Distribution 3. The Financial Facts and Figures 4. Unique Expansion Strategy 5. Corporate and Management Culture C. The Competition in the United States D. Wal-Mart’s Global Strategy E. Expansion Target: France General Overview Retail Industry Overview Macro Environmental Analysis External Factors Micro Environmental Analysis Porter’s Five Forces Model SWOT Feasibility Study Recommendation F. Expansion Target: Israel General Overview Retail Industry Overview Macro Environmental Analysis External Factors Micro Environmental Analysis Porter’s Five Forces Model SWOT Feasibility Study Recommendation G. Conclusion H. References/Sources I. Appendix in Book 2

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Wal-Mart: Global Expansion Strategy

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A. Introduction
In the last couple of years, a number of major changes took place in the global hemisphere. Countries, earlier committed to tight governmental control of their economies, have redirected their political concepts and initiated drastic reforms in order to facilitate trade. The world has arrived in the global market place, at least in some terms. Not least because of new technologies like the Internet that is about to mark the beginning of a new era of international business relations. The challenges an entity faces by forming a strategy to participate in 21st century’s global economy, that is, to be competitive at a worldwide stage, are intriguing to discuss and shall be the objective of this paper. Both authors share the opinion that the world’s largest retail chain at present, the Wal-Mart Stores, will be a very interesting company to examine, since Wal-Mart already took a few steps, i.e. countries, towards its global appearance. To begin with, let us take a closer look at this famous company’s profile.

B. Wal-Mart Stores Inc.
1. The Adolescence of Wal-Mart: The company was founded in 1962 as a single Discount Store in Rogers, Arkansas, by a visionary and by the time legendary man named Sam Walton. Since then the chain had been growing at an unrivaled rate, starting with 9 stores and total sales of $ 1.4 million, now about to finish the fiscal year 1998 with total sales of US $118 billion and 2,136 stores. The company consists of discount stores, SAM’s Wholesale Club (introduced in 1983, Midwest City, OK), Wal-Mart Supercenters (1988, Washington, MO) and deep discount warehouse outlets (Bud’s Discount City). Having written a unique success story in the history of retail industry, thanks to the rousing leadership of Sam Walton, the company internationally came off the ground by opening its first store abroad in Mexico City in 1991. Since then Wal-Mart has extended its international presence to Puerto Rico (1992), Canada (1994), China (1996), Brazil (1995), Argentina (1995), South Korea (1996) and Germany (1998) (Wal-Mart History). Today Wal-Mart operates more than 600 stores in international arena with a revenue of $7.5 billion [1].

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Wal-Mart: Global Expansion Strategy

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The major merchandise lines include house wares, consumer electronics, sporting goods, lawn and garden items, health and beauty aids, apparel, home fashions, paint, bed and bath goods, hardware, automotive repair and maintenance items, toys and games, and grocery [1].

The company is one of the major job generators in America, it has created more than 825,000 jobs and also supports thousands of U.S....
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