SCHOOL OF BUSINESS ADMINISTRATION
WAL – MART MARKETING PROBLEMS
WHEN GOING GLOBAL
NGUYEN THI HUONG GIANG
NGUYEN THI TRUC LINH
TRAN THI THU HANG
NGUYEN PHU NGHI
LE DUC PHUC
A project submitted to Dr. Vu The Dung in partial fulfillment of the requirements for the International Marketing course
Ho Chi Minh City, Vietnam
4.The overseas expansion & existing marketing strategy3
4.1.The overseas expansion3
4.2.The existing marketing strategy3
II.MARKETING PROBLEM WHEN GOING GLOBAL3
2.1.Unique culture and concept3
2.2.Human resources management3
2.3.Political/ Legal forces3
Clearly dominating the US retail market, Wal-Mart- the world biggest retailer decided to expand into the global market in early 1990s, starting with nine countries in Asia, Europe and South America. It is now spreading its power throughout the world with its attempt to penetrate hypermarket culture in all local market it entered. However, many severe problems, especially culture adaptation, human resources and local competitor problems are come into play because Wal-Mart applied the same Wal-Mart’s US success formula in doing business in global market. The matter of standardization – to keep what so – called Wal-Mart discriminator and local market adaptation becomes essential lesson for any company doing marketing around the world. I.
1. Company Background
The American retail legend - Sam Walton, who is one of the top of the “billionaires club” in the States, founded Wal-Mart store, Inc. in Arkansas in 1962. And it has been the world’s largest private employers and retailer over forty years later, which operates more than 8,400 units in 15 countries under 55 different banners, and serves more than 200 million customers per week with over 2.1 million associates worldwide today. Wal-Mart had $405 billion in annual sales in fiscal year 2010. By 1977, it made its first corporate acquisition, assuming ownership and operation of the Mohr-Value stores in Michigan and Illinois.
Wal-Mart, the subject of countless newspaper features and journal articles praising its dominance and success, is the largest retailer in the world, the world’s second-largest company after Exxonmobil and the nation’s largest nongovernmental employer. Wal-Mart Stores, Inc. operates retail stores in various retailing formats in all 50 states in the United States. The Company's mass merchandising operations serve its customers primarily through the operation of three segments. The Wal-Mart Stores segment includes its discount stores, Supercenters, and Neighborhood Markets in the United States. The Sam’s club segment includes the warehouse membership clubs in the United States. The Company's subsidiary, McLane Company, Inc. provides products and distribution services to retail industry and institutional foodservice customers. It is now has more than 4,700 stores including some 1,475 discount stores, 1,750 combination discount and grocery stores and 538 membership-only warehouse stores (SAM’S CLUB) (Bianco, 2003). Despite the fact that 75% of the Wal-Mart stores in the United States, it has been expanding internationally. The International segment includes all of its operations in Asia, Europe, and South America which are comprised of Argentina, Brazil, Mexico, Canada, China, Germany, Japan, Korea, Puerto Rico, and United Kingdom (“About Wal-Mart” 2004). 2. Organizational Culture
According to The Wal-Mart Culture (2004), the founder & owner - Sam Walton’s personal life story, the...