Walmart Case Study Essay

1043 Words Mar 8th, 2013 5 Pages
1. Compare and contrast Wal-Mart’s efforts in Germany and South Korea with its operation in China?
After more than a decade, Wal-Mart left Germany failing to become the popular “Everyday Low Prices” all in one shopping spot as it is in the U.S. Walmart has also failed abroad in other countries such as South Korea. There were only 16 stores in South Korea and was eventually sold out to a Korean discount chain, Shinsegae, for $882 million dollars. Reasons why Wal-Mart fails in these countries occur from the lack of strategic plan, other than the duplication of the U.S. strategy. The strategy of low prices, keen inventory control, and a huge selection of goods was not a success in German and Korean markets. The culture was also a factor that
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Germany then switched over to German managers who then made a point of selling higher quality food than before with organic mean and product. Changes were too late to me made to keep Wal-Mart in Germany but this doesn’t mean they don’t succeed in other countries abroad. China has a market where the U.S. strategy can work well. According to Wal-Mart China, they believe in local sourcing, have established partnerships with 20,000 suppliers. Before Wal-Mart even entered China, teams conducted consumer habits and needs in order to address culture norm behavior so they could adopt a business strategy that would be a success in China. 2. What lessons were learned from those two efforts?
Multiple lessons were learned from the efforts of expanding into Germany and South Korea. Millions of dollars were lost and the expansion in those countries and should be used as a guide of how not to enter a new country. Many Koreans never have even heard of Walmart since there were only 16 stores. That means in the city Seoul with a population of 10 million, there was only one store. Wal-Mart also pushed Western marketing strategies that put off South Korean consumers. Wal-Mart will need to analyze how aggressively they enter a new market, and how to change Wal-Mart’s corporate culture on non-Americans. Another tool they should have used was to evaluate market wants and needs of foreigners, without knowing the South Korean consumer needs and habits; the ‘Every Day Low

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