1) Walmart struggled when entering the German market in the late 1990s due to stringent regulations around store size and development. German competitors like Metro and Aldi were already well-established with loyal customer bases. 2) Porter's 5 forces analysis showed high bargaining power for suppliers and customers in Germany. Competition was also intense from dominant German retailers. 3) While Walmart's entry provided some benefits like jobs, it made mistakes by imposing an American approach and not adapting to the local market. To succeed, Walmart needs to create goodwill and develop European suppliers.

1. Wal-Martin Europe Presented by: BakulSanakalFenella Andrade Sarah ChoudharyMasters in European Studies and Management (MESM) 2010-2012Manipal Centre for European StudiesManipal University, Karnataka, India

2. Wal-Mart: BackgroundFounded by Sam Walton in 1962 in Bentonville, USA1970s marked the beginning of significant growth-opening of the first Wal-Mart distribution centre1980s- transformed from regional to national discount retailer-aggressive diversificationLate 1990s Wal-Mart became the largest private employer in the worldEntered German market in 1997,followed by UK -acquiring ASDA in 1999Present:8,986 retail units under 55 different banners in 15 countries

3. CultureFollowed 3 key principles: respect the individual

4. provide superior customer service

5. strive for excellenceSundown ruleIn Sam Walton’s words -“never put off till tomorrow what you can do today”

6. company’s dedication to customer service

7. products should be available to the customer whenever they wantTen Foot ruleSam Walton encouraged associates to take this pledge with him"I promise that whenever I come within 10 feet of a customer, I will look him in the eye, greet him, and ask if I can help him.“

8. Staffs offered assistance to customers within the radiusStrategies adopted Everyday Low Price Guarantee, inventory control, efficient distribution strategyAggressive bargaining with suppliers Unique cultureStores located within a day’s drive from distribution centreAdopted Radio Frequency Identification Technology (RFIT) - able to track inventory as it moved through distribution centers to storeEfficient supply chain managementOverall cost leadership

9. Consequences US economy experienced boost in productivity (late 1990’s)Increased employmentGrowth in labor productivityTechnological innovationsRaised the standard of living of average Americans

10. Criticisms faced by Wal-MartLow salaries to its employeesLegal suits regarding hiring practicesfailing to pay overtime

11. underpaying hourly workers

12. sexual discrimination

13. non-compliance with the Americans with Disabilities Act

14. Underpaying immigrant workers

15. ‘locking in’ overnight workersStrike by the unions for better health benefits (2003)

16. Globalization of RetailEarly 1990s - rapid global expansion in retail sectorExpansion became crucial for Wal-MartPlayers in international retailing in Europe:Woolworths, USA ( Canada+ UK+ Germany)

17. Sears Roebuck, USA (Cuba+ Mexico)

18. Metro group, Germany