Today, our team is going to present why Wal-Mart failed in Korean Market and what strategy should they have if they want to reenter Korean Market. Korean retail market is a big market, which has 252 billion USD capacities and basically shared by E-Mart with 34%, Lotte Mart with 19%, and Samsung-Tesco with 14%. 1998 Wal-Mart entered Korean Market. But very soon in 2006, only 8 years later, Wal-Mart sold all it’s 16 stores to Shinsegae Co. and decided withdraw from Korean Market. Before withdraw from Korean Market, Wal-Mart only occupied 4% and still loss 10 million dollars a year.
Wal-Mart is the world's largest public corporation in 2010 by revenue, and it has 85000 stores in 50 countries. Wal-Mart is famous on its every day low-price strategy. But why Wal-Mart could not succeed in Korean market?
The main reason that Wal-Mart failed in Korea is underestimated culture different in Korea. As a big and experienced company like Wal-Mart, Wal-Mart must did all the research before entering Korean market and choose the best strategy. However, Wal-Mart was so confidence of the shopping style they have and ignored the culture difference. They transplant their business model and hope Korean customers can experience it and welcome it. For future success, the most important thing that Wal-Mart should do is trying to understand their local customer and localized their business to fit customer request. Next, our teammates will introduce difference of Korean customer and our suggestion that how to localize.
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