Walmart’s Expansion in Africa: A New Exploration Strategy
Introduction/Objectives:
Follow the footsteps of several large enterprises, WAL-MART is trying to expand into the African market. The Walmart was founded by Sam Walton. And the most famous point for company is the “ Every Day Low Prices ” This world's largest retailer proposed $23 billion acquisition of South Africa Massmart holding share company. The Massmart is the third largest retailer enterprise on the Johannesburg stock exchange. Africa, owns many popular brands, such as Game, Makro (Makro), Dion wired, Jumbo and Builders Warehouse and so on. Massmart annual income in Africa area was up to $60 billion. It operates in 13 countries, and for Africa operates 290 stores. Massmart provides access to Africa market as the perfect springboard for WAL-MART for America retail giant through taking control of the company, so as to WAL-MART ranks among the three major retailers Africa is easy. WAL-MART have a great influence in the enterprise. The company annual sales is more than $4000 billion a year, almost is the two times of the South African’s GDP ( $2270 billion). As the world's largest retail enterprise, WAL-MART can make very simple global retail price plan. It is extremely successful business model is based on low price strategy, although the price prospects for consumers may be very attractive, but from the general direction,suppliers, retail labor and groups will lose.

Critical Issues/challenges presented in the case: Global purchase mode of WAL-MART forcing African suppliers adjust its price gap in countries like China supplier have to do. China use cheaper low labor standard to get win in the market. The Domino effect in a move that will be very extensive. African supplier sales may increase, but profit margins could not escape the fate of decline. The losers will be the