Wal-Mart Globalization Strategy Story line: •Background and general globalization strategy oThings like continuum spectrum – where is Wal-Mart local /global etc. oInternational growth strategy like – JV and Acquisition oDiscussion industry level , firm level, globalization oDiscuss summary of general globalization
•Latin America ( Andy), Europe( Kim), Asia Markets( Phani) – oWhat are things that Wal-Mart done successfully to adopt?
Bringing in organizational processes that were very successful in US and adopting them to the Asian markets is a successful thing. The organization processes that are standardized include store management, people management , distribution systems ,procurement and IT infrastructure As the distribution systems are not matured in Asian markets Wal-Mart successfully adopted an education program for farmers both in India and China and helped them to offer consistent quality in fruits and vegetables.
This helped reputation of the store and confidence in the customer. The direct purchases from farmers raised the standard of living of farmers by giving more stable income and Walmart selling consistent quality in its super markets Adaptation of local markets and local taste is a big a thing in retail and Wal-Mart has done this very successfully in China . Some key examples include selling smaller quantities of foods since there is no refrigeration oWhat were the short comings in each of the market?
Short comings include process failures that included backlash against Wal-mart by mixing the labels of Organic meat and non-Organic meat Wal-mart failed completely in SouthKorea as it was not successful in understanding local market needs but was more operating like a westernized store. In Japan Walmart tried to implement low cost strategy and distribution strategy similar to markets in North America – US, Mexico and Canada. In Japan most of the suppliers for retailers are local and it is very hard to break those relationships. For a big retailer like Wal-Mart it was a time consuming affair to establish relationships . Low cost strategy did not register in Japanese mind .
oWhat are the lessons learned? oWhat are our key observations? •Is globalization successful for Wal-Mart? ( Shashi) oWhat in our terms success is? oPotentially bench mark financially, market share, adoption with peers internationally and with peers? •Recommendations and next steps oWhat are key challenges going ahead for Wal-Mart? oHow will Wal-Mart international look like in the next 5 years? oRecommendations for Walmart