SESSION ACADEMIC 2011/2012
ATW 395 INTERNATIONAL BUSINESS
(WALMART’S GLOBAL EXPANSION REPORT)
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.
Wal-Mart has changed its course of action from being an organic growing company to an acquiring company. Since Wal-Mart reached its objective of being the number one retailer in the U.S. in early 1991, it had been shifting its focus on becoming a global chain, starting to expand into the international market. This expansion has proven to be overwhelmingly successful, and therefore Wal-Mart in the long run can maintain this strategy and ensure the continuous growth of its businesses. The company is present in Asia, South America, and recently started to conquer the European market by purchasing a German 100-stores chain. Yet the company should not over-exaggerate its pace, and wait for one or two years, before it enters the French market as well. In fact, it...