Walmart Vs Hofstede

Handling business under these circumstances requires a degree of effort, however, due to the similarities of the cultural dynamic in South African and United States, not all will be extremely difficult for Walmart. Despite political and economic differences, much of the South African culture resembles that of the United States with only minor disparities, allowing some translation of business practices to the nation. Using Hofstede’s value dimensions, the cultural context of the two nations can be analyzed thoroughly. Both South Africa and the United States rate just below the middle of Hofstede’s power-distance index which means that people in both countries tend to recognize their position in the hierarchy of a business while still realizing …show more content…
Even though Walmart and Massmart are leaders in their respective countries, both have their own set of issues. Walmart is a phenomenally huge organization with a vast breadth of operations from banks to supermarkets, but controlling this wide scope of power can be difficult when the corporate giant is continuing to expand. On the other hand, Massmart’s weakness lies in its supply chain. Operating in an area where the infrastructure is lackluster creates problems when trying to transport goods to stores. That being said, both companies benefit from having their strengths outweigh their weaknesses. Being the largest retailer in the globe allows Walmart to bask in a number of benefits. Due to Walmart’s economies of scale, the organization gets to enjoy having power over its suppliers, giving them greater control over how, and at what price they buy their products. Also, as previously mentioned, Walmart has a hand in a wide spectrum of industries, which allows the company obtain profits through a number of avenues making it almost too big to fail. To continue, Massmart also is in an excellent market position, being the second largest retailer in its area. The company’s bottom line benefits from having a similar low-pricing strategy which Walmart sports in the U.S. For this reason and many others, the two companies, Walmart and Massmart, have an excellent chance at succeeding in the international