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Wal-Mart Case

Submitted by jasmine_ss on March 8, 2005

Category: Business
Words: 4418 | Pages: 18
Views: 1555
Popularity Rank: 1,533
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Wal-Mart International Case

Introduction

In 1993, Wal-Mart had become Americaˇ¦s leading retailer, with net sales of $67 billion from its Wal-Mart stores, Samˇ¦s Clubs, and Wal-Mart Supercenters. The Company had grown at a rate of 25% per year since 1990, and it was clear that to continue at its current rate of growth, Wal-Mart would have to seriously consider continuing its recent international expansion.

During 1992, Wal-Mart had entered into a joint venture with CIFRA, Mexicoˇ¦s largest retailer, which currently operated 24 stores in Mexico and had plans to open 70 new stores by 1995. The Company had also recently completed the acquisition of 122 Woolco department stores in Canada. Each of these expansions had presented unique challenges for Wal-Mart to adapt its operations to suit local market demands, but Wal-Mart had successfully risen to the challenge. Given the Companyˇ¦s successful track record, it seemed logical to continue to expand internationally.

If Wal-Mart didnˇ¦t expand internationally, David Glass, Wal-Martˇ¦s CEO, felt that companies would start to come to the US and increase competitive pressures domestically. International expansion would drive growth and help in maintaining Wal-Martˇ¦s dominant domestic position. Namely, entrance into foreign markets would force competitors to focus on their primary markets. If Wal-Mart planned to maintain its dominant position in the U.S., international expansion would not only drive growth, but it would also keep potential competitors trying to operate stores in their home markets rather than expanding into the U.S.


Wal-Mart

Company Background:

Sam Walton began his retail career working at J.C. Penney while in college and later leased a Ben Franklin franchised dime store in Newport, Arkansas (1945). In 1950, he relocated to Bentonville and opened a Walton Five and Dime. By 1962, Walton...

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