Walmart Case Study

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Wal-Mart | A Case Analysis | | | | | | Although Wal-Mart is a large company, they are still exposed to major threats and challenges. Wal-Mart has definitely outgrown itself in the United States. However, they have been having extreme difficulty when it comes to international expansion. It is important for Wal-Mart to figure out what the International Market is looking for versus the American Market. Due to cultural differences, Wal-Mart can’t expect to make progress overseas without clearly defined market goals. Sales at Wal-Mart in China have declined. In addition, Wal-Mart has pulled the idea off the table when it comes to building in South Korea and Germany. Germany wanted Wal-Mart to build smaller neighborhood stores and provide legal restrictions on store opening hours. Wal-Mart is also facing problems with their expansion into Canada. “The United Food and Commercial Workers Canada, which represents employees at the retailer’s only North American store with a union contract, said on Wednesday that the company was trying to thwart its organizing efforts.” Wal-Mart is using whatever resources they have available in order to keep the Canadian Wal-Marts from going Union. This is another example in which Wal-Mart has got to learn to improve its international relations in other countries if they wish to expand successfully. When you are a global retailer, a company is also exposed to the political problems in the countries in which they operate. Since Wal-Mart is the number one retailer in the United States, it is the major target of local and global competition. “The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost has fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price
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