Wal Mart Case Study

Topics: Wal-Mart, Department store, Sam Walton Pages: 1 (307 words) Published: October 7, 2012
Wal-Mart is an American multinational retailer store that runs largest chain of discount department stores and warehouses. Wal-Mart was found in 1962 by Sam Walton in America. After its great success in America and other countries Wal-Mart decided to introduce itself in Germany by 1997. Wal-Mart failed to do business in Germany because the strategies and plans it used in America failed to work in Germany as the requirements of people and business differ from that in America. Wal-Mart failed due to many reasons due to which it faced money and image losses. Wal-Mart failed to take in account Germany’s cultural attitudes, especially with regard to such matters as labor law and the role of unions. Europeans in general tend to generally corporate work rules that regulate their private lives. In Germany, companies typically enjoy a close connection with their unions. Second Wal-Mart’s failed to appreciate whether and how American consumer’s behavior and expectations might differ from those of consumers in new market. Wal-Mart due to its name failed to do business in Germany as it became for Germans to pronounce the name. Wal-Mart should have gone for a German name for their store. Language barriers also act a s hurdle in building its name in Germany. Wal-Mart entered the German market with a degree of cultural arrogance that undermined its chances for success. Having conquered the world’s largest consumer market, Wal-Mart seemed to venture abroad expecting a similar victory. Therefore, Wal-Mart before introducing itself in Germany should have studied their behaviors in order to flourish. Wal-Mart learned lesson from failure in Germany that the strategies which it is using in America does not fit or work in every culture. Behaviors and attitudes of people vary from culture to culture.
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