Market entry plan for Walmart Essay Example | Topics and Well Written Essays - 3000 words

Market entry plan for Walmart - turn out ExampleThe firm that is analyzed in the paper is Walmart that was founded in 1962 by Sam Walton. Over the years, it has expand to become one the US largest chain of retail stores, growing into almost 300 stores by the dying of the 1970s, and now with over 10,000 stores globally. Its first foray into the multinational market was in the early 90s, when it entered into a stick venture with Mexicos largest retailer Cifra to operate Sams Club. This move was to be considered its most successful entry into unusual trade, having conquered the Mexican market and contributing approximately 30% of all food sales in the local market. To date, it has not really matched its tremendous success in Mexico. Walmart now has global heraldic bearing in Mexico, Germany, China and the United Kingdom, among others. It has 5,651 stores and approximately 780,000 associates in 26 countries outside the continental US. It has acquired stores, co-branded or rattli ng brought the Walmart brands into these new locations. However, its market entry strategy has always been perceived as weak, primarily because the company has use the same market entry strategies in majority of the locations it ventured into. Management failed to take into consider the idiosyncrasies of each orbit that the company has tried to penetrate, and understand the unique market needs within each culture and well-disposed setup per location. (This is not America. Why Walmart left Germany 2012). In fact, Walmart was even described as among the several retailers that wealthy person underestimated the role of conducting cultural due diligence prior to foreign market entry, resulting to massive pullouts in strategic locations such as Germany and South Korea, and losing of billions of dollars in the process (Retail Internationalization 2012). Taking into consideration diachronic hits and misses in global market penetration, this paper aims to discuss and recommend appropriat e market entry strategies to examine that the companys next international venture will promise more success than failure. II. market enthrone ENTRY STRATEGY Australia is considered to be one of the strongest economies in the world. The country has been highly praised by various international organizations like the International Monetary Fund (IMF) for its brilliant macroeconomic management and consistent economic clear up. The Australian government has created a stable and strong base for economic harvest-home. Its current GDP growth rate is 3.8% with an inflation rate of 2.5%. It is considered to be the second easiest economy for new businessmen and the third easiest place to get credit for a business, and has few restrictions in the field of Trade and Investment (Australia Business and sparing 2012). Australia has a reliable banking system and has fast and friendly regulatory procedures. It is known for having little restriction of crop markets. This country is best fit as v enue for global expansion as far as Walmart is concerned. Walmart entered various locations through several entry strategies. The company entered the Mexican market through a 50-50 roast venture with Cifra, Mexicos strongest retail company. It counted on home grown Cifra to provide operational expertise, something that is needed by Walmart considering the cultural difference between the two countries, and the economic and political situation of Mexico. This bold move to collaborationist with a local company proved to be highly successful for Walmart considering that this is their most successful foreign partnership to date. In Canada, Walmart acquired local company Woolco to be able to penetrate the Canadian market. This decision is brought approximately by the fact that the Canadian mark