Walmart’s Foreign Expansion

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Week 2: Walmart’s Foreign Expansion
1.Do you think Walmart could translate its merchandising strategy wholesale to another country and succeed? If not, why not? I think it depends. On one hand, those countries where Walmart achieve its whosale business expansion successfully would like to accept this kind of American shopping style. Otherwise, it could fail due to the different shopping style shock. On the other hand, Walmart should pay much attention to promote its wholesale strategy to local society actively to change local residents’ shopping habits, and also do some changes which especially suitable for local folkways.

2.Why do you think Walmart was successful in Mexico?
The process of Walmart’s success in Mexico is a long term. First of all, Walmart didn’t entry the Mexico market impulsively but to choose to cooperate with a local business, the Cifra. And due to the different shopping style, Walmart noticed that widely carrying out its wholesale strategy with hypemarkets could cause failure in Mexico. As a result, it adjust its plans quickly to adapt the local conditions by hiring the local managers who are familiar with local shopping habits and building small stores that people could walk to. Meanwhile, what is more important for Walmart is it insists on changing Mexican consumers’ shopping culture by promoting American shopping style deeply and also offering the real low price of the merchandises. The local consumers got the authentic benefits from Walmart, as the same time, Walmart also achieve its success in Mexico.
3.Why do you think Walmart was failed in South Korea and Germany? What are the difference between those countries and Mexico? Unlike Mexico whose local supermarket is empty, both South Korea and Germany already have the local sophisticate, mature and complete retail industry such as the Lotte in South Korea and the Metro in Germany which are widely acceptable by local consumers. And their managing practices quite...
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