Walmart expansion


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Walmart expansion

  1. 1. NicolasAlbornozZengYanni
  2. 2.  Walmart (officially Wal-Mart Stores, Inc. ) is a U.S. multinational that specializes in retail , founded by Sam Walton and now headed by his eldest son, S. Robson Walton . Founded under that name in 1962 , In 2010, with sales amounting to 421.849 billion of U.S. dollars and 16.389 billion dollars in profits 6 , Walmart has retained its position as the world leader in terms of turnover. With 2.1 million employees working in over 6,100 supermarkets and hypermarkets (as well as in subsidiaries), Walmart is the largest general retailer in the United States with 3,500 stores and 20% estimated market share and the largest distributor of toys with a 45% estimated market share, having surpassed Toys "R" Us in the late 1990s .
  3. 3.  International expansion in 1991 begins with Mexico in response to market saturation in the US Localization strategy adopted after trial and error the strategies of U.S. market did not work well initially due to difference in consumer habits. They hired local managers , they adapted to smaller stores to reach remote customers with different buying needs as compared to U.S. Walmart’s Persistence paid off , Mexicans changed their shopping habits.
  4. 4. UK , Germany and South Korea.Head to head competition from local giants.Discount strategy did not work well due tocultural demand of high quality merchandises.They pulled from Germany and South Korea in 2006 butstayed in UK.They changed international market strategy to lesscompetitive markets.
  5. 5. Identify more suitablemarkets and adaptablity tomodify local strategies asper the need of culture isthe formulae behind theWalmart’s Internationalsuccess.
  6. 6. U.S. Totals 1568 1258 525 49Grand Totals 2510 1496 596 86
  7. 7. Swan Optical ManufacturingExample 1 Design 1-5
  8. 8. In 1996 Walmart slowly entered China , while trying to adapt to Chineseculture and merchandise needs.American Culture versus Chinese culture.Walmart learned to allow unions in China as an exception to secure socialorder as per communal system.In 2006 Walmart bought 35 percent stake in Trustmart chain which has morethan 101 hypermarkets across ChinaIs it on Track ?
  9. 9. Thank you for shopping at WAL-MART
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