Walmart Germany

Topics: United States, Korea, Republic of China Pages: 1 (423 words) Published: August 5, 2012
3-Wal-Mart failed in South Korea and Germany because it found itself going head to head against well established local rivals who had nicely matched their offerings to local shopping habits and consumer preference. Also consumers in both countries seemed to have a preference for higher quality merchandise and were not as attracted to Wal-Mart’s discount strategy as consumers in the United State and Mexico. Moreover, they came to both countries at a time where many existing supermarket chains were expanding rapidly, so competition was high, Korean and Germans are very conservative in their shopping habits. They rather stick to the well known brands. I do not think they necessarily had to fail, but they would have needed a lot more patience and a lot more adaptability to Korean and Germans habits which they clearly did not have. The differences between Germany and South Korea with Mexico was, these two countries (Germany and South Korea) consumers seemed to have a preference for higher quality merchandise and were not attracted to Wal-Mart’s discount strategy as consumers in Mexico. 4-Wal-Mart has discovered that Chinese are the bargain hunters and open to a low-price strategy and wide selection offered at Wal-Mart stores. Then the shopping habits of Chinese people including middle class people are seemed like Americans than European. To succeed in China, Wal-Mart needs to adapt China style of merchandising and operations strategy so that it meshes with Chinese culture. Then Wal-Mart has to embrace Unions. Example, Chinese consumers insist that food must be freshly harvested or even killed in front of them. So what did Wal-Mart do is they began to display meat uncovered, installed fish tanks into which shoppers can plunge fishing nets to pull out their evening meal and starting to sell live turtles for turtle soup. Then, Wal-Mart has its own principal in unionization. In U.S, Wal-Mart has resisted to unionization. But in China, Chinese unions do not bargain for...
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