Wal-Mart in 2005: Managing Globalization


IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
 
Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTA137
Case Length : 18 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : US
Industry : -

To download Wal-Mart in 2005: Managing Globalization case study (Case Code: BSTA137) click on the button below, and select the case from the list of available cases:





Price:

For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges


Business Strategy Case Studies
Case Studies Collection
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Area Specific Case Studies
Industry Wise Case Studies
Company Wise Case Studies



Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

Introduction

In 2005, Wal-Mart, the largest retail chain in the world was also the world's largest company with a turnover of $285.2 billion. Wal-Mart's globalization had started in 1991, when it opened a SAM'S Club near Mexico City. In 1993, Wal-Mart International was set up to oversee the growing opportunities for the company worldwide. Since then, the overseas operations had enjoyed rapid growth and consumer acceptance. Wal-Mart International employed more than 400,000 associates in Argentina, Brazil, Canada, China, Germany, Korea, Mexico, Puerto Rico and the United Kingdom. Wal-Mart also owned a 42% interest in Seiyu, Ltd., a leading Japanese retailer. Overseas sales amounted to $56,277 million in 2005.

Wal-Mart's approach to competing in overseas markets had evolved over time. When it entered a foreign country, Wal-Mart adjusted to the local regulatory framework and customer tastes. The retailer made necessary modifications such as merchandise offerings.

However, Wal-Mart did not change three main ingredients: Brand names (Wal-Mart and Sam's Club), everyday low price strategy (EDLP), and high ethical standards. Brand names had been an important asset while entering foreign countries and establishing an initial market. Wal-Mart extended ELDP to overseas markets both to make supply chain management more effective and to gain the trust of customers. Despite the difficulties involved, Wal-Mart had also held steadfast to its high ethical standards.

Wal-Mart believed customers were alike across the world, regardless of how different their countries looked...

Excerpts >>



 

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Study, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.