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Global Marketing Wal-Mart

In: Business and Management

Submitted By xredchickax
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Wal-mart

A global organization that has been unsuccessful in transferring their successful products or ideas from their home country to foreign markets is Wal-mart. Wal-mart has failed to do this in many countries. For example, in Brazil and Germany, Wal-mart did not understand the local culture, and failed to transfer their products into these countries. In Brazil, there were many other discount stores in which food was available at cheaper prices. Wal-mart’s business model of selling low prices, having obsessive inventory control, and a having a large variety of merchandise failed in this market because Brazil already had their own discount chain stores which were successful there. As we have established, there are some companies that experience "issues" when deciding to move their products or services to a changing consumer market. Although these companies have shown success in domestic locations, it is evident that without consideration of the changing consumer, and the ability to adapt product and services, companies, as large as they may be in some locations, have an increased failure rate internationally. “US based Wal-Mart, the world's largest retailer, entered Brazil in 1995 by forming a 60:40 joint venture with one of the country's leading business conglomerates, Grupo Garantia (icmrindia.org).” The entry mode would be in association with Lojas Americanas, which is controlled by Grupo Garantia. Wal-Mart’s intention was to achieve the number one retailer position in the Brazilian retail market in a very short period of time. Shortly, after entering Brazil, Wal-Mart encountered several operational problems during the initial years, due to which its expansion plans went wrong. “Wal-Mart then realized that most of these problems were due to the company's effort of replicating the basic store format prevalent in the US in Brazil and its failure to...

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