Global Strategy Of Walmart

Nowadays, more and more companies are crossing borders and reaching potential consumers from every corner of the world. It is imperative that companies understand there is no such thing as a one-size fits all approach for international trade. Companies must take it upon themselves to know their company and industry, determine the appropriate market entry strategy, select a target market, develop a business plan, and seek assistance to make the expansion process as smooth as possible.
Overview of a Global Strategy
Industry Analysis
An industry analysis is a critical component to track the company’s success, gauge the competition, an identify risks and opportunities in a new market. A full industry analysis should include an overview of the industry and cover everything from market size, current and future growth rate, profitability, the industry’s driving forces and key

Nevertheless, Wal-Mart could not enter these markets at the same time. Based on their market research, Wal-Mart decided to focus its expansion efforts on Mexico, Brazil, and Argentina during its first five years of globalization. Although the European and Asian markets had great potential, entering these markets would come with several difficulties. The European market was mature at that point, which meant that Wal-Mart would be competing against well-established retailers. According to Govindarajan & Gupta, “Wal-Mart might have overcome these difficulties by entering Europe through an acquisition, but the higher growth rates of Latin American and Asian markets would have made a delayed entry into those markets extremely costly in terms of lost opportunities.” (2002) The Asian market, on the other hand, would have required even more financial and managerial resources due to its geographical distance and cultural and logistic differences from the United States