International Marketing Adaptation Paper: Wal Mart

811 words - 3 pages

In this paper we will discuss the article "How Well Does Wal-Mart Travel". This article talks about how Wal-Mart has adapted its marketing strategies to meet the challenges of marketing internationally. We will describe how the company adapted, evaluate the adaptation's success, and identify areas in which the company could improve their adaptation. Then we will do a comparison of the company's internal and external marketing environment.Wal-Mart is the largest Discount Store in the United States. Its magnitude is not only recognized domestically but also expanded to International Market. According to the article, "How Well Does Wal-Mart Travel", Wal-Mart believes that it has no choice but to expand rapidly abroad. Its culture and stock price are built on the expectation of double-digit sales and profit gains year after year. Analysts figure that the company's expanding chain of U.S. super centers will carry the burden for at least four to eight years. But "someday the U.S. will slow down, and international will be the growth vehicle for the company," says Menzer (Zellmer, 2001). Menzer is the chief financial officer of the international division for Wal-Mart. Being number one in the United States does not always guarantee for being number one elsewhere in the world. There are many problems that Wal-Mart is now facing in this highly competitive international market.However, expansion through world market does not seem easy to Wal-Mart, it also faced some problems both from external and internal factors. Even though Wal-Mart has close relationships with American suppliers, it fails to make connection with local suppliers. Wal-Mart tired to use the same standard and concept as in United States but unfortunately one concept does not fit all. Another external factor that comes into play is government regulations. As a result of private consideration in expanding hypermarket culture into international markets, Wal-Mart faces management problems as well as external problems, which causes severe problems to Wal-Mart in the global Market. The external problems are late entry, overlook competitors, destroy small business, joint venture and nationalism, culture different, house brand and price differentiate, suppliers, and government regulations. These critical problems provide difficulty for expanding in this new market and competing with its competitors in the global market.The article talks about one of the biggest hurdles came when Wal-Mart entered Germany.Wal-Mart bought the 21-store Wertkauf hypermarket chain in 1997 and then 74 unprofitable and often decrepit Interspar stores in 1998. Problems...

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