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International Strategy For Wal Mart Essay

1058 words - 4 pages

Wal-Mart is a household word in the U.S., but it is quickly becoming a well-noted name in the international realm. Wal-Mart became an international company in 1991 when a Sam's Club opened near Mexico City. In 1993, Wal-Mart International was created to oversee the growing opportunities for the company worldwide. The international area is under rapid growth and worldwide consumer acceptance. Wal-Mart has over 2,660 stores in fourteen countries and the Low Price Promise is an advertising strategy that is known in any language. Sales have topped over $62.7 billion and continue to show a marked increase in profits every year. (International Overview, page 1-3)In dealing with the international market, Wal-Mart has had to adopt several different kinds of international strategy. I will discuss the types in terms of the strategy process: analysis, formulation, strategic choice and implementation. Due to the complexities of the market, Wal-Mart uses different techniques in different parts of the world. They have been successful in capturing the globe's attention and cash flow, but some countries have presented problems.Wal-Mart identifies strengths, weaknesses, opportunities, and threats very effectively when looking towards expansion. The SWOT is used as a company tool in making important decisions when incorporating international strategy into their fiscal planning. Wal-Mart's strengths include its reputation for rock bottom prices, super efficient logistics and its huge size. Its weaknesses include its failure to learn the complexities of some international markets, such as Germany and China and its large size presents a problem in countries like Ireland, where there is a cap on large businesses and corporate sprawl. They have many opportunities for expansion and Wal-Mart capitalizes on these opportunities by moving into almost every large segment of the globe. They actively recognize threats to their markets and leadership spends large amounts of time in learning what will be potential threats into countries they move into. The company studies the SWOT of their market as they move to formulate strategies and alternatives to moving into the market.Their global expansion has been achieved through a combination of building new stores or moving into existing operations instead of starting from scratch or a series of acquisitions and mergers where customers want to see them. These strategy formulations have given the company excellent market penetration and positions the company for future development. Their main global or international strategy is their continued local focus on the culture of a country. They have a unique ability to transport the company's message and effective retailing concept to each country. They make a formulated effort to adapt to local cultures and become involved in the local community. By serving each hometown in the same way, Wal-Mart makes strategic choices based on this and have realized significant growth. (International...

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