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Walmart

Wal-Mart
Several external environmental factors that a company needs to review when marketing a product domestically and globally. Some of those are demographics, logistics, culture and technological factors. This paper will discuss some of the factors that Wal-Mart reviewed before the decision was made to take their business to the global market.
Wal-Mart has saturated the market in the United States (US) and the only way for this company to grow was to take its operation globally. The US accounts for approximately four percent of the worlds population and for Wal-Mart to grow the, decision was made to tap into the other 94 % of potential customers. What Wal-Mart needed now was a marketing strategy to target other countries and increase their sales.
Since the rapid expansion of technology, lower trade barriers and increasing cultural homogenization Wal-Mart set out to conquer a part of the Latin American population. With a need to stay competitive with other lower levels of disposable income
Wal-Mart needed to chose a 50-50 joint venture to penetrate the market because of the considerable income and cultural differences between Mexico and US. Wal-Mart approached Cifra, Mexico’s largest retail business to provide operational expenses in the Mexican Market. The Wal-Mart was open in Mexico City first in 1991 after the agreement was made between the two corporations. Wal-Mart chose Mexico as the main entry point into one of the three largest populations in Latin American market with Brazil (1994) and Argentina (1995) to follow.
Since the European market would be more of a challenge to penetrate because its characteristics were less attractive, Wal-Mart decided that they wanted a piece of the Asian market. This was very attractive especially with China hosting 1.2 billion people; that about a quarter of the worlds population. The problem was that it would take considerable managerial resources and financial backing to establish a presence in Asia. Wal-Mart...