GFMA 2023 INTERNATIONAL BUSINESSTable of Contents PART A .......................................................................................................................................... Case study ...................................................................................................................................... Question 1: How does expanding internationally benefit Walmart? ........... 1 QUESTION 2: What are the risks that Walmart faces when entering other retail markets? How can these risks be mitigated? .................................... 2 QUESTION 3: Why do you think that Walmart first entered Mexico via a joint venture? Why did it purchase its Mexican joint venture partner in 1998? ........................................................................................................................... 3 QUESTION 4: What strategy is Walmart pursuing—a global strategy, localization strategy, international strategy, or transnational strategy? Does this strategic choice make sense? Why? ...................................................... 5 PART B ........................................................................................................................................... Introduction ............................................................................................................... 7 Company background ............................................................................................. 8 The company’s strengths and weaknesses related to global business activities. ................................................................................................................... 15 Competitive Advantages ....................................................................................... 17 Analysis on existing competitors and their global strategies ....................... 19 Identify and analyze the opportunities and challenges faced the company in expanding its business internationally. ........................................................ 21 0 GFMA 2023 INTERNATIONAL BUSINESS Explain how the company overcame various challenges and conquered the overseas market ....................................................................................................... 24 Suggest future strategies/actions that the company can adopt in overseas market - to ensure long-term sustainability. ................................................... 25 Conclusion ................................................................................................................ 27 Reference ................................................................................................................. 28 Appendix ..............................................................................................................................29 Case study Question 1: How does expanding internationally benefit Walmart? As a present developed, many of Walmart‟s suppliers constructed manufacturing works near its Mexican delivery centers so that they could better assist the company, which assisted to advance drive down inventory and logistic costs. There have other benefits. Firstly, Walmart has also been to gain important economies of scale from its worldwide purchasing power. A lot of Walmart‟s key dealers have long been global businesses for example GE (appliances), Unilever (food products), and Procter and Gamble (personal care products) are all main Walmart dealers that have long had their own worldwide processes. Besides that, Walmart has used its improved size to request deeper discounts from the local processes of its worldwide dealers, increasing the company‟s capability to lower prices to customers, increase market share, and eventually earn 1 GFMA 2023 INTERNATIONAL BUSINESS larger profits. Second, Walmart has initiate that it is benefit from the movement of ideas transversely the 14 countries in which it now competes. For example, a two level store in New York State came about because of the achievement of multinational stores in South Korea. Other than that, Walmart has been a leader in the employment of information structure to track product sales and inventory, and their established one of most well-organized distribution system in the world. Then, Walmart was being one of the first corporations to encourage widespread stock ownership among employees. These practices led to high output that enabled Walmart to cut down its operating costs, which it passed on to consumers in the form of everyday low prices product. By the mid-1990‟s, Walmart was changed its Mexican processes to match the homegrown environment. It show intensely enhanced the distribution system when Walmart did a partnership with a Mexican trucking corporation. QUESTION 2: What are the risks that Walmart faces when entering other retail markets? How can these risks be mitigated? Walmart faced the risks when get into another retail market, they were faced the risks. The risk is replicating not success. This risk happens when Walmart has matters in its system of effective distribution system on replicating at Mexico. This is because of the poor infrastructure, road was crowded and with the local suppliers there were a shortage of leverage. From inherent problems of stock, thus increasing of cost and higher prices as matter that occur that cannot or will not directly delivered to Walmart‟s store or distribution centers in Mexico. There were also has misunderstandings with selection of merchandise. Items like mowers for cutting grass, ice skates, fishing rods and blower‟s leaf that famous at US were carried by many stores in Mexico. So that, this items do not sell well and this take action of manager to slash the prices to move the 2 QUESTION 3: Why do you think that Walmart first entered Mexico via a joint venture? Why did it purchase its Mexican joint venture partner in 1998? My opinion why the Walmart enter Mexico by a joint venture because there a lot of advantages that they can get by joining their own company with the establish company that already establish at Mexico. when Walmart want to expand their business in Mexico. Improvement from the distribution systems occur if the business has relationship that is partnership relationship between Walmart and Mexico.GFMA 2023 INTERNATIONAL BUSINESS inventory. Mexican stores sell merchandise that appealed more. These risks can be mitigated if a partnership with Mexican trucking company to match with the local environment operations. just to search the automated company information systems that can replenish the depleted stock immediately ordered. For example. 3 . Other than that. they choose the company that already establish at Mexico market which is Cifera . the largest local retailer. many supplier of Walmart built factories near the Mexican distribution centers to have better serve the company as presence grew of Walmart. There will be more careful practices of stock meant that to local tastes and preferences. they can serve better the company that can help further drive down inventory and cost of logistics. From this built. language. Walmart can easier to improve the process of their target to expand more about their business. 4 . for my opinion. for my opinion. checking more careful stocking practices means that the Mexican stores can sell merchandise that appeal more to local tastes and preferences. Besides. about their culture. The reason why Walmart doing these because they learn from their mistake before. So by these. by owning the local company. political systems and the business systems. the cost and risks of opening a foreign market can be shared by two companies. Walmart can implement their own system which they can improve with their distribution system. In 1998. I think the company that joining with local company no need to worried or need to make some research more because they already can get the knowledge by their partner. Walmart can share anything that related to their company with their partner so that Walmart no need to worry about the cost that they obligate by their own. By purchased the joint venture company. Walmart make their move to the global expansion by purchased their Mexican joint venture because they want to adapt with the Mexican operations and match with the local surroundings. By knowing this thing. By owning the local company. by joining the company.GFMA 2023 INTERNATIONAL BUSINESS The purpose by joining these two companies it is because that company which is Walmart Global gets benefit from the local partner‟s knowledge it is about the local condition. this 5 . Currently. they adjusting the product that offering. The strategy that used by Walmart firstly is localization strategy. Walmart become more than twice the size of its nearest rival in Mexico with some 700 stores and got the total revenue about $12.GFMA 2023 INTERNATIONAL BUSINESS Walmart can easily make their own target and some of Walmart‟s supplier built factories near its Mexican distribution centres so that they could serve better to the company. which is focuses on increasing the profit. which can help to further drive down the inventory and logistics cost. localization strategy.5 billion. so the firm provides a good tastes and preferences in different market. or transnational strategy? Does this strategic choice make sense? Why? Walmart was opened in Arkansas by founder Sam Walton in 1962. Walmart Company has rapidly goes into the international market by opening up new branch in a lot of countries in this world. By purchased the local company which is Cifera. QUESTION 4: What strategy is Walmart pursuing—a global strategy. Secondly is International Strategy. international strategy. To the local demand. the company upgrade the local market product in term of value. The goods or services are customized. Between 1995 and 1998. The major area of focuses is how these companies have been successful in foreign countries. a firm cans slowly starting to 6 . it might be difficult to see a Walmart in another country. strengths and opportunities. by the goal's establishment and appropriate techniques. the firm's profitability is about 5 percent and the growth in profits that came from international operations is about 4 percent. When looking towards expansion. Walmart started its first international branch in Mexico in 1991 and has growth up get own innovations. In 1993 just 1 percent of all Walmart branch at outside the United States. Thirdly is Global strategy. competition in the businesses and markets is difficult to avoid. Walmart using the SWOT analysis in decision making of combination the international strategy in fiscal planning. Until now. threats. The company before this started its business in small town in the United States. However. The involvement of globalization was growing. Wal-Mart identifies the weaknesses. Initially. The problem that faced by Jerman and China in Ireland‟s market is the failure to learn complexities of some international markets or their weaknesses. Walmart has used good business strategy where in every country its branch have a different name and then the goods that produced are different quality based on the tastes of customers in other country.500 warehouse stores and departmental in 15 countries. Globalization is not just marked a change in the international relationship with an increase in the political economy of international. It is also forced the world to be advance to get an simple and luxurious life style while saving the time and the money. but nowadays. Walmart has be pursued globalization rapidly cross the barriers since its first move in 1991. international sales are increasing at almost nine times.GFMA 2023 INTERNATIONAL BUSINESS company has more than 8. all the Walmart's stores always follow the main principle that is low prices. Earlier 1998. that had grown to 18 percent. In case to compete with other companies that producing the same goods in other countries. Yes. Wal-Mart faced some cases and problems including the cases of the competitors. Walmart and Kmart already success in the retail business. We done our research very widely and have been explained very clearly throughout this project. In the industry of retail business.GFMA 2023 INTERNATIONAL BUSINESS the success path. Walmart is known as a strong company because during the 7 . Walmart was established by Sam Walton. which is giving Walmart the meaning of Walton‟s mart in long form. The most stronger of competitor for Walmart is Kmart. Part b INTRODUCTION We are in a group of 6 given task to do research and analyze on Walmart corporation in order to complete this project. which is Kmart is the largest retailer after Walmart in the United States. the strategic choice makes sense because Walmart always care about what customers want even in the cities. Waltmart was named based on the family name Walton. In 1962. Walmart corporation is very famous company around the world and well-known for the largest retail industry. there is still have a difference in their business strategies. while Kmart focused on building its branch at populated areas. The differences is Wal-Mart focused on the establishment of branch at US‟ small towns and communities. They always try to protect product in the stock with the local culture. opportunities and challenges faced by Walmart around the world. we gave suggestion on future strategies or action which Walmart can adopt in oversea market in order to ensure long term sustainability. We have given a clear explanation on company profile and nature of the business very well. Walmart managed to survive and sustain on that time. Last but not least. Majority of this project is all about Walmart Corporation background. Company background Wal-Mart Stores WAL-MART 8 . global strategies. So we have identified and analyze on existing competitors.GFMA 2023 INTERNATIONAL BUSINESS recession in the year of 2008 at United States. we have explained very clearly about Walmart‟s strengths and weaknesses and its competitive advantages. we have explained how Walmart overcome various challenges and conquered the overseas market. Walmart corporation is started very long time ago and it is very well-known company in the market. The successes of the Walmart retail industry have been researched widely. In additionally. Besides that. Walmart running groups of big deduction cost of branch stores and storehouses. Sam Walton is the person who founded this corporation in 1962. 1969. a Walmart was opened in York. Pennsylvania and carrying the fundamental store into the Northeast. The headquarter was in Bentonville. In 1988. Walmart Corporation was merchandized on an open market on the New York Stock Exchange in 1972. Walmart became the greatest beneficial and profitable vendor in the United State and in October 1989 it had turned into the largest as far as income revenue. 9 . . The organization design from a provincial to nationwide giant in the late 1980s and early 1990s. Walmart also the owner and operating the Sam's Club merchandising warehouses in North of America.S It produced 51% of its Us$258 billion deals in the United State in 2009 from basic supply business. Walmart is likewise the largest groceries vendor in the U. Walmart Corporation well known for the greatest valued companies in the world. Walmart Corporation is well known for the family-owned business which is organized by the Walton family with the above 50 percent of Warmart shares. Sam's Club opened in New Jersey and on July 28. In October 1990. the first California outlet opened in Lancaster. Arkansas. Walmart is the world‟s biggest community corporation in 2014 and well branded for the largest private company in the world which the company consist of over two million employees and these make Wal-Mart as the biggest vendor in the world. 1990. from the early 1990s Wal-Mart‟s vicinity traversed across the nation –On November 1989. Geologically constrained to the South and Lower Midwest up to the mid-1980s. combined on October 31.GFMA 2023 INTERNATIONAL BUSINESS -Walmart known as an American international merchandising corporation. Companies owned by Walmart in U.000 stores owned by Walmart in 27 countries under 55 different names.greatly successful. 10 . Walmart's History Walmart‟s history is talking about how Walmart have been began from the starting . 1967 24 stores which cost up to $12.Best Price In Argentina. Brazil. 1969 The corporation formally and legally combined as Wal-Mart Stores. Inc.had varied result. 1970 Walmart started to grow up and well known in National level. 1960s Merchandising Revolution Sam Walton‟s plan created an unshakeable foundation –„The Lowest Prices Anytime. United Kingdom . Outside North America. Sam Walton was opened his first Walmart stores in Roges. on the year of 1969. and Canada – is wholly owned operations. including 50 states and Puerto Rico operates under Walmart corporation. Anywhere‟. Projects in Germany and South Korea – unsuccessful. Mexico . Ventures conducted by Walmart give a successful result and unsuccessful result.7 million in sales was owned by Walton family. 1962 On July 2.S.GFMA 2023 INTERNATIONAL BUSINESS There are more 11. and how‟s the leadership has been changed throughout the retail industry. how it had been grow. Ark.Asda India . China.as Walmart de México y Centroamérica. and South America . 1962. United Kingdom. 1983 In Midwest City. 1975 Sam Walton was presented the Walmart cheer because it is motivated by a visit to a Korean manufacturing facility. 1971 In Bentonville.GFMA 2023 INTERNATIONAL BUSINESS "Mr. Sam‟s Club launched firstly. 1984 11 . Walmart changed the system of money registers to computerized point-of-sale systems by provide the quick and exact checkout service.50 per share was sold as the first stock. In those year too . Walmart name was listed with 51 stores which noted the sales of $78 million. Okla. Sam Walton" takes Walmart into national level and proves this vision as to be widespread had been achieved. Walmart Supercenter was firstly started with the combination of a supermarket and general merchandise. 1980 1 billion in annual sales achieved by Walmart and it is the quicker than other firm during those time. $16. 1972 In the New York Stock Exchange (WMT).Walmart had 276 stores and he hired 21.000 allies. 1979 The Walmart Foundation was launched. the first delivery center and Home Office was established. 1970 Walmart Corporation is known as publicly traded company. 1980 Years of Firsts Sam‟ club was the first being opened in the 1980s by providing and serving small businesses and individual. 1987 The biggest private satellite communication system was installed by the company and connecting all the operation of the company through smoothly on the data. David Glass is the CEO of the company during that time. voice and video communication.firstly released open in Washington to provide one-stop shopping convenience by combining the general merchandise with a full-scale supermarket. Every Day Low Prices was internationally spread-out. 1992 Before Sam Walton passing away at age 74. 1991 A Mexican retail company went to globally through the joint venture by Cifra and a Sam Club was opened in the Mexico City. 1990 Known as the America‟s Top Retailer Walmart became name as the nation's number-one retailer by 1990s.GFMA 2023 INTERNATIONAL BUSINESS When the company accomplished a pre-tax profit of 8%. Walmart hired 371. 1996 12 . he voiced the company‟s task of saving people money so they can live better while receiving the Medal of Freedom Chairman of the board goes to Rob Walton. 1994 Walmart Corporation is being spread to Canada with the buying of 122 Woolco stores.928 stores and clubs. Sam Walton did the hula on Wall Street by creating good on a promise to associates for the prior fiscal year. 1993 $1 billion sales week during the year 1993 is celebrated by Walmart .000 associates in 1. Walmart Supercenter was redefined accessibility and one-stop shopping. 1988 Walmart Supercenter. 2007 Walmart.1 million associates in 3. 1997 Walmart was celebrated the first $100 billion sales year. 2006 Walmart launched its $4 generic-drug treatment program. Through its investment in Seiyu. in a store or on a mobile device. More than 1.450 truckloads of supplies. creating aims to zero waste. applying only renewable energy and provide products that endure individuals and the environment. itz gives Walmart entered the United Kingdom.GFMA 2023 INTERNATIONAL BUSINESS Walmart had been opened the firstly stores in China. 2000 David Glass selected as CEO of the company.989 stores and clubs international which were Walmart employed. Walmart take a leading part in disaster relief by donating $18 million and 2. its make Walmart entered the Japanese market.com was created.com introduced Site to Store service for consumers to buy through the buying online and pick up stock in stores. When Walmart. 13 . 1999 With the acquisition of ASDA. customers to shop through the online. 1998 In Arkansas. 2005 To victims of hurricanes Katrina and Rita. the Neighborhood Market format was established with three stores. Major commitments by Walmart made into the ecological sustainability. 2002 Walmart was topped the Fortune 500 ranking of America's biggest companies for the first time of its career. 2000 New Era entered by the Walmart corporation This is to offer the customers a seamless shopping experience which is not counting whether they are online. it‟s allowing the U.S. high-quality food. Walmart introduced @ Walmart labs. global platforms and mobile. 2014 Mike Duke as the CEO. 2011 Walmart across 10.GFMA 2023 INTERNATIONAL BUSINESS 2009 Mike Duke is the CEO.000 stores in 27 countries. Walmart Express stores were opened in Arkansas for the first time. Walmart contributed $2 billion to support end hunger in the United States.Bharti Walmart. a hub to develop the social.A.000 retail units worldwide with the gaining of Massmart in South Africa. Walmart beat $400 billion of the yearly sales. 14 . 2012 Walmart celebrate 50 years for assisting people save money so they can live well. and allowing customers access to affordable. Walmart went to Chile with the huge and majority acquisition of a stake in D&S S. Walmart established a worldwide obligation to maintainable agriculture and aiming to strengthen and stronger the local farmers and economies.2 million acquaintances international and serving more than 200 million customers each week roughly more than 11. a shared venture was opened. 2010 In India. The Walmart employing 2. Walmart International Sam's Club Walmart Global eCommerce 15 . Now because of the innovation.2 million associates.S alone about 1. and expanded internationally. It‟s started from very humble beginnings as a small discount retailer in Rogers. Besides that. mobile devices and in stores. Walmart creating a seamless experience to allow customers purchase shop at anytime and anywhere through the online.GFMA 2023 INTERNATIONAL BUSINESS Walmart Business Walmart had introduced thousands of stores around U.3 million and around the world about 2.S. Ark for the first time. Walmart corporation running more than 11. Business done by Walmart: Walmart U. they also employs in U.000 retail units under 69 banners in 27 countries and ecommerce websites in 10 countries.S. They created values and bring a lot of opportunities to customers and communities globally. Walmart also having a website. Walmart has their logistic system that gives competitive advantaged with other company. Suppliers must be in a very strong negotiation position and must choosing that gives great flexibility and wide range working with supplier and vendors. with the great capable manager that can lead the success of 16 . with the technology used. This strategy of having a low cost is very successful with the aggressive growth strategy of Walmart. this has allowed sales increasing over the world. Walmart can added 425 new stores over the world alone on 2003 and the number of customer demand increasing make company add to 4000 more to the world. Thus. Demanding on online market. So that. People know over four decades since established in 1962 with everyday give very low prices of variety products with the largest net sales over the world. Other than that.GFMA 2023 INTERNATIONAL BUSINESS The company’s strengths and weaknesses related to global business activities. from this online sale. Strengths and Weaknesses Of Walmart To Global Business Activities Strengths of Walmart To Global Business Activities Walmart has develop many strength to global business activities compared to others companies. Online orders have become a breeze to fill that it is not only provides convenience for customers.. The powerful brand name of Walmart that has makes people familiar. Then. Walmart be able to invest to improve their company. It gives the largest jobs to the employee over the world to a people that want job without a college education especially in the United States. From this saving cost. some people refuse to shop at Walmart. He or she knows how to save the transportation cost of Walmart from its superb logistic systems. clothing. Walmart also faced the weaknesses. Its focus on lowering the cost production and give low prices.GFMA 2023 INTERNATIONAL BUSINESS company. Last but not least. Therefore to the small retailers. If we can see. Walmart as a retailing giant has taken over the retail industry. Due to lack of sales. At European market. Weaknesses of Walmart To Global Business Activities However. the competitor can take the chance makes the change and improve to customer needed. As case occur in Japan. thus Walmart able to achieve high operation efficiency. sometimes the location of the stores of Walmart has a disadvantage. but they did not focusing on quality of product and the competitors. they have the lack quality of products without focused on competitors also. The competitors only gaining in the other surrounding countries and only present in the UK. Walmart has a lot of consumer over the world sales that have low prices and well-known name. Walmart also needs to consider the consequences of 17 . it will make extremely difficult to survive. and stationary. most of the small shops have been forced to close. since Walmart sells variety of products like food. Walmart Sieyu chain failed due its inability to attract shopper of quality-obsessed. They are angry because the powers of Walmart monopolize gain over past few decades. The lack focusing of Walmart on quality of product because of only focus on lowering price. It‟s difficult to control certain place with different culture. Then. growing too big in many areas in the world makes lack of control. Other than that. So that. they still do not have a large part although Walmart has grown and expanded into the international market. Because of this issue. It kept tightly aligned with their own 18 . We usually know that Walmart always support their low-cost and enhance it with an integrated system of capabilities. Walmart need consider to open another location of store. Competitive Advantages Discuss the competitive advantages of these companies. some companies may gain a competitive advantage as a result of access to raw materials. starting from food to prescriptions until electronics. others may gain an advantage through the use of technology for production and distribution or as a result of a well-known brand name). As we focus on Walmart. we can see that the difference between Walmart with the other two is because their motto of their company which is “always low prices”. Because of the increasing number of stock in store. (For example. Walmart cannot only one store to save the others stock. the major competitor of Walmart is Kmart and Targets. include with their real estate acquisition. This two major competitor always compete with each other to become the successful company that have their own competitive advantage. “Always low prices” is well-defined how Walmart play and focus more in a wide range of consumer product. As we know. So the competitive advantage that Walmart have is to sell their product with the lower price compared to Kmart and Targets.GFMA 2023 INTERNATIONAL BUSINESS placing their stores too close together. Walmart also known as the company that mix between their product and service. no frills store design and superior supply chain management that involve many expert point-of-sale data analytics. In addition.GFMA 2023 INTERNATIONAL BUSINESS capabilities systems which can avoid big ticket items. the fundamental of Walmart principle is everyday-low prices which is sell the product in a lower price to their customer as low as the customer can‟t get from the other company. Furthermore. We can see that the strong relationship between vendor and the company can make our company be more successful and our vendor will trust us for a long time. And Walmart also innovates constantly within its chosen constraint like tailoring product assortments to local trends. 19 . Besides. Walmart also commit to customer service which is they also concern about what really the customer want from the product that they sell and always concern about the quality of their product that they want to sell to their customer. Walmart always care about their relationship with their vendor. Walmart also efficient in their operation network. or where new service capabilities might be required. We can see how the process that Walmart do to make sure that the company that their joint ventures with is going well in not making some losses. where it has no cost advantage. Publix. Walmart also have competitors in Germany like Edeka Group. Target. the other company which is their competitor will beat it to the punch. For example the competitor. Aldi. Mexico‟s Commercial Mexicana and Soriana. then the other retailer also decreases their price. the main competitors for Walmart are stores like Shopko and Meijer. When Walmart decrease the price. there are three strategies that they use. Metro AG. There is Client-oriented culture. According to Daniel (2004) there are some key factor for evaluation and selection of a country for international operations which is 20 . Rewe and other. Lidl. Walmart realized that if they do not take the challenge to make the business internationally. Competitions the prices between retail are not follow the Germany‟s market. transformation and innovation.GFMA 2023 INTERNATIONAL BUSINESS Analysis on existing competitors and their global strategies. we are taking the Carrefour Company. and adaptation. However. Canada‟s The Real Canadian Superstore and Giant Tiger. Analysis for the Carrefour global strategies. In north America. Kmart. Walmart‟s president said one of the main strategies is the promotion of a global brand name. ease and compatibility of operations. Walmart must know that the profit will not achieve easily and they have to know certain thing that can bring them to success in retailing online.GFMA 2023 INTERNATIONAL BUSINESS the market size. that is the important aspect because these opportunity will gives us more access into markets at local and gives Carrefour more chance in business. The internet also have specialties that will help to improve the walmart‟s business to growth up. By using the internet in business. The pricing strategy is one of the main features Walmart has been known. The marketing strategy is to ensure the lower prices in every transaction. Walmart also used the internet and technology to promote their goods and services all over the world. Walmart started the competitive business strategies. Every day low price (EDLP) is the term that tells all about Walmart. To attract the potential customers. Their main idea is to focus on consumers needs and provide the good services as possible. Besides. The meaning of the term is Walmart provides product that are high quality at the lowest prices. This is because when we want to enter certain market with the huge scale. we really needed the local partner so that we can understand market and move master. cost and resources availability and economic. There are 21 . For me. it‟s easy for Walmart to open the services to internet users. the Carrefour and Walmart slightly have the same strategy for expansion their own business. After they recognized the solution for problem that faced. For the purpose of expansion the business. politic. Carrefour also makes consideration about the important of having the local market. The business becomes highly recognized and easily remembered because of the strong commitment of Walmart for policies and customers. monetary and financial risk. Walmart used this communication strategy. Wal-Mart offered unique warranties and brand images and achieve the strategy.GFMA 2023 INTERNATIONAL BUSINESS many problem that faced in retailing online such as delivery costs. The customers of Walmart believe that Walmart provided the special thing that do not provide in others competitors store. customers must believe that are something special offered to them. developed one of the most efficient distribution systems in the world. The conclusion is. The Walmart‟s account will manage by a new company which is Li & Fung. Walmart has grown rapidly from the smaller to the largest retailer in the world and Walmart was a leader in the performance of information systems in track the product sales and inventory. Whether the types is real or just in the mind of the customer. data security and merchandising returns. Walmart defined about the source of product that imported into the market. Identify and analyze the opportunities and challenges faced the company in expanding its business internationally. This means differentiation strategy used by Walmart to succeed by making a unique goods or services to the customers. Walmart also uses differentiation strategy. By rearrange the relationship with the suppliers all over the world that offer the lower price for the product that competitive and lower prices. Walmart was one of the first companies to promote widespread stock ownership among employees. Existing opportunities Walmart was established in Arkansas by Sam Walton since year 1962. Walmart was realized that its opportunities for 22 . However. Other than that. The competitor for Walmart in Canada is Target and Walmart have the competitive advantage in food retailing because Targets is limited in food retailing. the largers online retailers in China and if Walmart success in doing online shopping market it can increase the revenue for Walmart. Other than Mexico and China. Walmart also expand the companies to China and China is the best place to expand the companies because China has the bigger populations. Besides that. Walmart was decided to expand the company globally to increase the growth in business world and Walmart used different strategies in different places. Walmart can attract more new customers and the same time dominating the market widely. Because of that.Com. By doing the expansion into the new city. Walmart had signed the contract to get a little stake of Yihaodian. To start with the plan. Walmart also have the opportunities to expand the companies to Canada in food retailing sector. Another opportunity that available for Walmart in China was the concept of discount store formats and Walmart could be the first companies that used that concept because it was an attractive concept in China that time. Walmart start to expand internationally in Mexico and Mexico has been choose as the first stores. Other than Mexico. The main strategy by Walmart in Mexico was the multi-format strategy. Therefore.GFMA 2023 INTERNATIONAL BUSINESS growth in the United States were becoming more limited since year 1990. customers can buy anything or get their needs in the same place and that time Mexico was not that popular. Walmart always make sure that the 23 . GFMA 2023 INTERNATIONAL BUSINESS quality of the products that they offer is in good condition because Walmart is still new to customer. 3. Cultural misunderstanding Walmart was failed to attract the customer and retail environment in Japan. a lot of stores have the same concept with Walmart. At the same time. Japanese people like to buy in small quantity but American like to buy in bigger quantities. Carrefour and also Macro. Competition with other stores. Supply chain not efficient. Walmart used low price strategy to attract the customer and it was a great opportunity for Walmart to expand the companies in Canada that time. Other than Walmart. 24 . Lack of influence with local suppliers in the country such as Mexico. Such as Tesco. Walmart thought that Japanese would adapt to the way of Walmart operates. A lot of suppliers do not deliver the stock directly to the Walmart‟s stores or distribution center. Challenges faced the company in expanding its business internationally 1. „stocking up’ 2. and also Ito-Yokado Co. Therefore. Aeon Co. 4. Walmart had decided to expand the companies internationally but a lots of problem was occurred when the first shop was operate in Mexico. All the companies have the different strategies to make the customer be one of the loyal customers for their companies. the road in the Mexico is not in good condition so it is difficult to attract the customer. Other than that. Walmart must compete wih 7-Eleven Japan Co. Mexica is the first country that Walmart choose to expand the companies. Explain how the company overcame various challenges and conquered the overseas market. Walmart had decided to compete by changing the concept of the stores 25 . Poor infrastructure As we know. Walmart need to compete with the companies that already popular in that country. Walmart had learned from its early mistakes and Walmart had adapted its Mexican operations to match the local environment. the infrastructure still poor because Walmart still does not have the experience in expanding the companies.Ltd.GFMA 2023 INTERNATIONAL BUSINESS All the companies must compete to be the top spot in the world. crowded roads. the infrastructure was also poor. Other than that.. Such as Japan.Ltd. Other than that. Because of this. lack of leverage with local suppliers and the last one was problems with merchandise selections. when Walmart was compete with Tesco. The problems are Walmart had problem in replicating its efficient distribution system in Mexico. The importance of the promotion tools differs. Suggest future strategies/actions that the company can adopt in overseas market . radio. For example. internet and so on to get customer‟s awareness. depends on nature of the product and the number of possible consumers. they can avoid from spent big expenses for 26 .GFMA 2023 INTERNATIONAL BUSINESS to neighbourhood market concept that Walmart will carries only groceries. For the competition between Walmart and Carrefour. Walmart had decided to increase the capacity of its Distribution center in Tianjin in autumn 2007 so that it could supply to 90 Walmart stores. however. product lines typically found in a grocery market and also a pharmacy.to ensure long-term sustainability. Future strategies for Walmart to adopt in overseas market are by increasing customer‟s awareness and get customer‟s willingness to buy the product. Walmart will be the first choices of hypermarket for the customer because Walmart have everything in one place. By changing the concept. Walmart should know the current demands of customers and do promotion of that product only. So. Walmart can keep on doing advertising through television. they also can do promoting such as give sampling and couponing to increase customer‟s willingness to buy the product. Then. As portion of this new plan. the others future strategies are make a strategic alliance.GFMA 2023 INTERNATIONAL BUSINESS promotion. To increase customer‟s readiness to purchase their products by decrease the risk related with buying something new. Walmart also confirmed a series of agreements with Li & Fung that are non-exclusive agreements and do not include volume and shipment obligations. Walmart‟s new worldwide sourcing plan involves the creation of Global Merchandising Centers and makes a tactical alliance with Li & Fung. The strategic alliance between these two corporations will let Walmart to understand the benefit of combining a portion of its sourcing portfolio. Move the products into new groups or demographic sections it‟s requiring to do market research. Li & Fung. 2010. increases intellectual capital and delivers operational efficiencies. On Jan 28. These partners it could be new distributors so that the product would be distributes faster. The benefit it will get such as expands their customers. a worldwide sourcing organization. Other than that. Its means a merger or acquisition combines the better of two companies. Walmart should progress a new market section or move into new geography. 27 . According to Walmart vice chairman Eduardo CastroWright he said. Then. “the important basics in the firm‟s plan to distribute even greater value to its customers and shareholders. It can be done by allowing customers to try the product without obligations or create a small packaging for try or test the product. the partner of Walmart which is creating a new company to accomplish the Walmart account that expected to build size that would be allow it to act as a buying agent for goods valued around US$ 2 billion within the first year. For example Walmart has done to this strategy to ensure long-term sustainability. Lastly. They should continually look for ways to decrease costs and maximize their operating efficacy. They also should look for every opportunity to drive down cost at their operating system. the huge and large retailer like Walmart corporation. brilliant and remarkable story and it created history in the business world for maintaining and keep going till now on their businesses not only domestically. In a quickly changing and stimulating global business environment.GFMA 2023 INTERNATIONAL BUSINESS For example if they want produce a kid products so that the advertisement should relates to kid‟s advertisement to get more attention even though the cost are a bit high costly but the expanding market segment will increase the profit. but also globally. Walmart‟s success is a great. they should continually adapt their worldwide operations system to meet current market dynamics. have given the huge success to the company and this can seen through Walmart‟s power around the world and Walmart‟s domination into the market. For a rapid growing. Walmart company should maximize their operating efficiency. best entry modes are necessary and vital to enter into a new 28 . Conclusion Walmart‟s determination to expand globally regardless of profit or loss. Walmart managed to make a successful entrance into the market even they have been facing a lot of problems and challenges in the foreign markets and they still able to overcome their competitors in the retail industry. Walmart also well-known for treating and satisfying their customers‟ orders by offering multiple products using a low pricing strategy.com/case-walmarts-global-expansion/ 29 . from http://www. REFERENCE Carrefour And Wal-Mart's Differing Expansion Strategies In China. This shows Walmart courage. (2008). Retrieved on 28 April 2014. determination and independences which make Walmart notable and outstanding retailer in the industry beyond the borders. Another extraordinary work done by Walmart is the firm able to survive during a tough recessions period which slower the economy and business growth.thefreelibrary.GFMA 2023 INTERNATIONAL BUSINESS market.com/Carrefour+and+WalMart's+differing+expansion+strategies+in+China. Walmart still continues its business during that time regardless of recession period. This will ensure the efficiency and effective of a long term basis. Walmart make out a very strong and stable strategic management techniques and skills in order to make a wise decision to choose their location and target countries to expand their business. and rise unemployment rates. minimize business cycles.-a0213856460 Case: Walmart’s Global Expansion. (2013). Nevertheless. from http://unimasteressays. Retrieved on 28 April 2014. 35: 573-591. (2009). (2008).L.com/term_paper_topics/2010/03/global-strategy-analysis-walmart. America.com/GL/en/Issues/Businessenvironment/Six-global-trends-shaping-the-business-world Walmart’s Major International Strategy. Retrieved on 28 April 2014. (2012). from http://ivythesis. from http://globalmarketingtoday. P-465. Retrieved on 28 April 2014.typepad. Chow Hou Wee & Krishna Udayasankar.perishablenews.typepad.blogspot. 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