This document discusses Walmart's history and expansion. It notes that Sam Walton started the first Walmart store in 1950 in Arkansas. By 1962 there were 11 stores, and the company was incorporated as Walmart Stores Inc. in 1967. As of 2009, Walmart owned 8,400 stores globally and had over 2.1 million employees, generating nearly $540 billion in annual sales. The document then examines various economic theories and factors relevant to Walmart expanding operations into Pakistan, such as cultural acceptance of brands and a growing middle class.

2.  Raheel Raza
 Syed Danish Hamdani
 Raja Adil
 Saad Saeed
 Umair Rasheed
 Sumbal Akber
 Shabana Malik

3.  Wal-Mart headquartered in USA.
 Sam Walton started his discount store in 1950 by the
name of Walton's Five and Dime.
 Sam franchised it from 1944 to 1950 and then relocated
in 1950 to Bentonville iSam Walton owned 11 stores by
1962.
 Sam Walton incorporated the stores as Wal-Mart Stores
Inc in 1967.
 By the end of 2009, Wal-Mart globally owned 8400 stores,
had more than 2.1 million employees and generated
annual sales if nearly $540 billion.

4. Mercantilism:
 Thistheory will not apply on Wal-Mart. It
is due to this reason that it is not being
apply anywhere in the world.
 Maximum exports of high value products.
 Minimum imports of less value products.

5.  Wal-Mart has absolute advantage in
1: Low prices
2: Variety of products
3: Capital abundance
4: Latest technology

6. Wal-Mart has land, capital and
technology in abundance in home
country. As compared to the host
country.

7.  Variety of resources: All the perishable goods would
be taken from host country due to the nature of
product and in the host country its in abundance.
 Transportation cost: It also depends on the nature
of products as perishable goods would be taken from
the host country the transportation cost would be less
but other products has perishable goods the
transportation cost will be high.
 Economy size: The economy size of host country is
large. Its population is over 18 million. As high
population in major cities the demand for product
would be higher.

8. In product life cycle theory Wal-Mart places
itself at MATURITY stage. It is reflected as
Wal-Mart is facing severe competition (like
Sears. Kmart and Tesco) as they competing
by highly standardized products. So that’s
why it is expanding towards the developing
world.

9.  WAL-MART has basic factors land.
 WAL-MART has advance factors technology and
skilled labor.
The demand of WAL-MART is high in home
country.
The supporting industries of WAL-MART are
the firms which are producing their
products.
High quality products at low prices under one
roof.

10. This theory is not apply on WAL MART
because
 Wal-Mart attain economy of scale in home
country.
 First mover advantage.

11. CULTURAL FACTOR
 Pakistani society is family oriented
society where any outdoor activity that
supports family experience is preferred.
 Franchising Wal-Mart provides a place
where family enjoys a quality product.
 Day by day people are being more brand
conscious.

12. Legal Factors
 Legally acceptable to introducing a WAL-
MART franchise.

13. POLITICAL FACTORS
The current political condition of
Pakistan is favorable for Wal-Mart as
there is democracy in Pakistan.

14. Economic Factors
 The economic condition of individuals in
Pakistan is improving day by day.
 As now more members of the family are
earning hence the disposable income of
people are increasing so they can spent
more on personal needs.

15.  Competition is medium, because the
existing competitors have not captured
enough of the market share.
 The existing competitors are Metro, Cosmo
and CSD.

16.  Franchising

17.  GeographicallyIslamabad, Lahore and
Karachi are good locations for Wal-Mart
as they have good infrastructure and
Potential demand.