Wal mart global expansion strategy

Environmental initiatives[ edit ] In NovemberWalmart announced several environmental measures to increase energy efficiency and improve its overall environmental record, which had previously been lacking.

Wal mart global expansion strategy

The company was incorporated on Oct. Inthe shares of the company got listed on the NYSE. It has over 8, retail outlets under 55 different banners in 15 countries. It has over 2 million employees globally.

Its headquarters are in Bentonville, Arkansas. It is the largest grocery retailer in the United States.

You are here

The reason for such low operating costs lies in its high quality and efficient distribution network. The distribution network derives its efficiency from the fact that it locates its stores in a strategic manner, manages supply and order related information efficiently through latest information technological tools, makes use of cross-docking, and strategic expansion designs.

It captures significant market share through this strategy and takes advantage of economies of scale in production, and produces on a mass scale. Another vital strategy that is instrumental to its success and growth is the quality customer service it offers.

High quality customer service in comparison to other discount retailers is derived through employees who are high in morale, prices that are relatively low, and customer information that is managed efficiently.

As there are a wide range of products available in the stores of Wal-Mart, therefore it is very convenient for the customers to shop for all their needs at just one destination Kneer The mission of Wal-Mart is to improve the living standard of a common man by means of relatively low priced and quality goods offered by the company, along with the superior customer service.

One of the Wal mart global expansion strategy aspects of the success of Wal-Mart has been its choice strategic location of its stores. The central part of its general strategy is to keep costs low, which it achieves by higher volumes and keeping level of inventory low.

Supply chain efficiency also contributes in reducing the distribution costs. The efficient supply and distribution network of Wal-Mart is a result of strategic relationships with suppliers and implementation of high end information technology tools.

Wal-Mart also makes use of sophisticated data-mining techniques to collect information on buying behavior of customers in order to forecast demand, enhance customer service, and keep inventory levels low. Some of the new aspects of the Wal-Mart strategy are its increased focus on internationalization, opening up of different formats other than supermarkets, and extension of product range.

Since the United States market of Wal-Mart is fast approaching a mature state, therefore the company is on the lookout for foreign destinations to expand its operations globally.

In order to accomplish this task, Wal-Mart is adopting a range of strategies from strategic alliances to mergers and acquisitions. Another new aspect of its strategy is to offer a more comprehensive range of products to its customers so its customer base gets increased and thus there would be an increase in its business.

Under this, services like banking, insurance, and travel are now being offered to its customers. Formats like neighborhood stores are a new initiative of Wal-Mart Munzer Universal bar codes were introduced in the retail industry by Wal-Mart, which forced manufacturers to adopt common labeling.

Over the years, Wal-Mart has used the information behind the bar code to its advantage and developed latest technology to track its inventory and cut the costs out of its supply chain. Wal-Mart not so long ago, pioneered the usage of radio frequency identification technology, popularly known as RFID, and demanded the producers for its usage.

In this technology, data is transmitted through radio frequency, and small tags can be used for the storage of such data, and in comparison to the bar codes more data could be stored in such RFID tags.

Walmart’s Downfall in Germany: A Case Study | Journal of International Management

The use of this technology has significantly reduced out-of-stock merchandise levels Wilbert Wal-Mart has been extremely successful in the past, and has a very promising future ahead of them.

But it is faced with opposition from small stores in small communities, as well as employees. In order to address these issues, Wal-Mart has already taken giant strides to be seen as a more environmentally friendly organization, as well as to increase the benefits of its employees.

Once Wal-Mart has invested in their image in their home country, they should also focus on increasing their market share in the international markets which hold the greatest growth potential.

Wal-Mart is facing a certain problems in expanding to other international markets currently. There are restrictions on foreign direct investment in multi-brand retail in certain countries, like India.

Wal mart global expansion strategy

This situation is proving negative for its expansion plans. The purchasing power of customers in the United States is quite substantial, which is a good sign for the business of Wal-Mart in the United States.

However, the after effects of recession and global economic slowdown do not present desirable scenario for its business. However, the growth in the economies of developing nations is a positive sign for its international business.

There are a number of countries where people do not like to travel a great deal in order to buy their daily rations. Therefore, it would translate into loss of business for Wal-Mart as it cannot open stores in every nook and corner.

In certain countries, it has to face the opposition of local retailers too as it is a threat to their small retail businesses. There has been abundant use of technology in the retail sector worldwide, and Wal-Mart is also leveraging technology to its advantage in supply and distribution, and online sales An Introduction to Walmart.

There are no adverse environmental factors for Wal-Mart in conducting its worldwide operations. Wal-Mart is facing numerous law suits filed by its employees in relation to various HR issues, which hampers its brand image as an employer.The world’s largest retailer Wal-Mart was founded by Sam Walton in the year He opened his first store in Rogers, Ark.

On 31st October , the company was incorporated as Wal-Mart Stores. Key success factor was the guidance of Sam. Presently they are operating in fifteen countries with more than 8, stores with [ ].

Wal-Mart is the biggest retailer in the U.S. with over 4, stores across the country. It serves more than million U.S. customers every week and accounts for about 10% of retail consumer. International results have been anemic, despite $22 billion in capital investment over the past five years.

Wal-Mart last year generated a % operating profit margin from international markets. Wal-Mart is a household word in the U.S., but it is quickly becoming a well-noted name in the international yunusemremert.com-Mart became an international company in when a Sam's Club opened near Mexico City.

In , 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. May 16,  · Walmart's Downfall in Germany: A Case Study By: Phoebe Jui In , Wal-Mart had entered in the German retail market through acquiring the failing German retail chain Wertkauf but quickly encountered problems.

Wal-Mart had demonstrated phenomenal success in the US by providing an Every Day Low Prices guarantee, inventory control, and efficient distribution. Wal-Mart rolled out a new app last year called Savings Catcher, which helps shoppers compare prices on merchandise and then pays them the cost differences on a gift card.

Case Study: Supply Chain Management of Walmart