Essay on Walmart Failure in Germany
This is exactly what happened to Wal-Mart Germany. To begin with, it appointed four
CEOs during its first four years of operation. The first was Rob Tiarks, a US citizen and a Wal-Mart, Inc. senior vice president who had previously supervised around 200 US
Supercenters from the company headquarters in Bentonville, Arkansas. Not only did he not speak any German. Due to his unwillingness to …show more content…
Neither "everyday low prices" nor "excellent service"
Traditionally, Wal-Mart has inflicted a full-scale price war on incumbents on every single market it has so far entered in order to credibly communicate its legendary “every day low price”-pledge to local consumers. While extremely successful almost everywhere else, this strategy badly backfired in Germany – largely due to the afore-mentioned ignorance, lack of experience, and hubris of Wal-Mart Germany’s original top management team led by Rob Tiarks:
• To his complete surprise, all affected German competitors, first and foremost
Aldi – which throughout its existence successfully defended its position as Germany’s undisputed cost and price leader – Lidl, Rewe and Edeka, not only matched all of Wal-Mart’s price cuts. Even worse, the results of several independent surveys, commissioned by