Business Case Studies, Corporate Strategy Case Study, Wal-Mart’s,Germany

print page
Tell A Friend

Case Categories

Corporate Strategy Case Study

Case Title:

Wal-Mart’s Exit from Germany

Publication Year : 2006

Authors: Rudrajit Mishra, Abhijit Sinha

Industry: Retailing


Case Code: COS0055K

Teaching Note:  Not Available

Structured Assignment:  Not Available

Buy This Case Study

The world’s largest retailer, Wal-Mart was growing at a rapid pace with more than 6100 stores world wide, with the net sales reached to more than US 312.4 billion for the year ended in Jan 31, 2006. Since 1990, Wal-Mart was pursuing aggressive international expansion, but the strategy was apparently failed in the country of Germany. Wal-Mart was about to take the reverse turn in July, 2006 by selling its underperforming German stores to the county’s leading retail chain Metro AG. Wal-Mart which used to operate 85 hypermarkets across Germany by, admitted that it would incur a roughly US $1 billion pretax loss on the deal of its 2007 fiscal year. Ever since entering the US retail giant had struggled to capture the cut-throat German retail market. Analysts perceived that US Model of business was not effective in Germany besides that they failed to understand the customer want, and also German labor law. Analysts also thought that limited critical mass, insufficient square meter productivity and too aggressive pricing policy and above all cut throat competition from the local competitors like Aldi, Metro AG might cause Wal-Mart’s downfall in Germany. This case deals with the detail analysis why Wal-Mart failed in Germany and its decision to exit from Germany was strategically correct or not.

Pedagogical Objectives:

  • To understand the global retail market
  • To discuss about Wal-Mart’s initiatives in Germany
  • To analyse Wal-Mart’s failure in Germany
  • To argue on its decision to exit from Germany

Keywords : Wal-Mart; Retailer; Hypermarket; Aldi; Metro AG; Wertkauf; Corporate Strategies Case Study; Interspar; Arkansas; Germany; Western Europe; Acquisition; Discount food retail; Pricing policy; German antitrust law; Every day low prices

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»

Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501203, Telangana, INDIA.
Mob: +91- 9640901313,

©2020 - 25 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap