Essay on Walmart’s Expansion in Africa: a New Exploration Strategy

1762 Words Nov 16th, 2015 8 Pages
Perspectives on International Trade and Finance
Assessment 2 – Individual Case Analysis

Case Analysis
Walmart’s Expansion in Africa: A New Exploration
Strategy

Submitted by:
Pharin Chhodarangsey (Kevin)
001MG715
Date of Submission:
November 4th, 2015

Submitted to:
Dr. Rachaniphorn Ngotngamwong

1

Table of Contents
I. Introduction

3

I. 1 Company Background

3

II. Case Analysis

3

1. Detail the growth of Walmart and its international experience.

3

2. Describe the growth strategies of Massmart in the African Continent.

5

3. Detail Walmart’s acquisition of Massmart and expected strategic advantages.5
4. Analyses the challenges Walmart have to face in the African Continent.

6

5.
…show more content…
In October 2010, Walmex operated
1,578 units across Mexico. In 1994, Walmart entered Canada market by acquiring the local retail chain Woolco, and that times Woolco were in financial crunches and had high operating costs. As the Mexico, US and Canadian Market are similar the expansion turned out to be very successful. Walmart further expanded to Brazil and
Argentina in 1995 with a joint venture together with Brazilian retailer Lojas
Americana and in Argentina they had operated as a wholly owned subsidiary. The business model practiced in US proved to be successful in other American countries for Walmart. In 1996 Walmart enter China, as the first Asian countries, and had partner with a Chinese retailers. They had faced many different challenges from the
Chinese Government restricted the number of stores to operates, the culture, the language and the type of customer (low income preferred to shop in the neighborhood areas). After studied the behavior of Chinese Market, Walmart had to changes the leadership from American to Chinese, extend their time frame of returning good and sell fresh foods and live animals. During the new country experimenting, Walmart also moved to UK, Germany and South Korea to set up the operation and gain market.
While the low price model was well received by UK, it was fail in Korea and
Germany. Also in Germany, the government restricted retailers

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