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Walmart Globalization. Its size, power, and low prices are what make Walmart so
helpful to America. ... If you think about it, is Walmart really good for America? ...
WalMart and Target. Shopping is an integral part of our everyday lives. ... Two of the
leading and most important companies out there today are WalMart and Target. ...
walmart. Its size, power, and low prices are what make Walmart so helpful to America.
So why do some people think that Walmart is so bad for American people? ...
Target vs Walmart. ... Walmart: “Who has the better deal?” By: Jennifer Young When you
think about a great shopping experience, what stores come to mind? ...
Walmart – A Brief History. Walmart – A Brief History • In 1962 Sam Walton open his
first Wal-Mart in Rogers, Arkansas. ... ENVIRONMENTAL ANALYSIS-WALMART. ...
Submitted by radieschen on March 7, 2008
Category: Business
Words: 847 | Pages: 4
Views: 136
Popularity Rank: 75,801
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Globalization Imperatives
Did Wal-Mart need to go global? Clearly, it had developed a successful business model for competing in the United States. Why not just prosper as an American retailer? The answer is that the company needed to grow in order to survive, and the international arena was the only one in which significant growth was possible.
Why was growth so important? First, the company needed to show increases in both sales and profits to satisfy capital market expectations. Second, it needed to satisfy the expectations of its own employees. One of the key factors in Wal-Mart's success was its dedicated and committed work force. Thanks to Wal-Mart's stock purchase plan, the wealth of these employees was directly tied to the market value of the company's stock, creating a direct link between growth and its effect on stock price and company morale.
Given the necessity for growth, Wal-Mart could not afford to confine its operations to the United States for three reasons. First, it had already saturated most of the domestic markets. Second, the United States accounts for just over 4 percent of the world's population. By limiting itself to this market, Wal-Mart was missing out on 96 percent of the world's potential customers.1 Finally, emerging markets, with their lower levels of disposable income, offered huge platforms for growth in discount retailing. Other companies had already capitalized on such growth thanks to the rapid expansion of information technology, increasing cultural homogenization and lowered trade barriers.2 Wal-Mart had no choice but to pursue globalization aggressively to meet this competition.
In undertaking global expansion, Wal-Mart had the capacity to leverage two key resources originally developed in the United States. It could exploit its tremendous buying power with such giant domestic suppliers as Proctor & Gamble, Hallmark, Kellogg, Nestlé, Coke, Pfizer, Revlon and 3M to procure goods cost-effectively...
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