Wal Mart Failure In Germany

WAL-MART GERMAN MISADVENTURE
CASE STUDY, INTERNATIONAL MARKETING

PARIS

Content 1. Introduction 2 2. 1History/Company profile 2 3. Wal-Marts strategy in Germany-and why it failed 3 3.1. Flawed entry by acquisition 3 3.2. Poor management and cultural adaptation 4 3.3. Failure to deliver “everyday low prices” 5 4. PESTEL Analysis 7 5. Supply Chain 9 6. SWOT Analysis 10 7. Porters 5 Forces Analysis 11 8. Marketing Mix 12 9. Marketing strategy 13 10. Conclusion 13 References : 14

1. Introduction

This case study will observe Americas and one of the world’s largest retailers Wal-Mart and its flop in the German market. The objective is to understand its misadventure on the German market through observation of the global environment- PESTEL analysis, supply chain, SWOT analysis, Porters 5 forces analysis and also by understanding its marketing plans and marketing mix at the time of the misadventure.

2. 1History/Company profile

In 1962, brothers Sam and Bud Walton opened their first store in Arkansas. Today Wal-Mart is not only the largest retailer in the world but also the largest corporation in the world. Wal-Mart has more than 1.2 million workers making it the largest private sector employer in the world. Wal-Mart has 1.478 Wal-Mart discount stores (all located in the US), 1.471 Supercenters, 538 Sam’s Club membership warehouse (the number two U.S. warehouse chains) and 64 Wal-Mart neighborhood markets.
In the late 80’S Wal-Mart decided to go international with an ambitious strategic goal to have its foreign operations contribute a third of Wal-Marts total profits by 2005. International operations officially started in 1991 with its first store outside the USA, a Sam’s Club membership warehouse in Mexico City.
Today Wal-Mart international operations include discount stores in Canada and Puerto Rico;