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Globalization and Walmart

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Globalization

Retail giant, Wal-Mart will always have competition however they have successfully cornered the market with the use of several strategies including Globalization and expansion through the horizontal market. Entering the global market is never exclusively the result of a grand design, it’s an approach that requires opportunism and flexibility within a broad direction set by a systematic framework (Govindarajan & Gupta, 2002). Wal-Mart made the decision to enter the international arena after it was established that they had saturated the United States domestic market, which only accounts for 4 percent of the World’s population (Govindarajan & Gupta, 2002). Wal-Mart executives realized that they were missing out on 96 percent of the World’s possible customers. In addition, “other competition had already capitalized on such growth tanks to the rapid expansion of information technology, increasing cultural homogenization and lowered trade barriers” (Govindarajan & Gupta, 2002). In order to live up to the current competition, Wal-Mart had no choice but to pursue globalization aggressively. Wal-Mart had leverage entering international territory, exploiting its buying power with supplier giants including; Proctor & Gamble, Hallmark, Kellogg, Coca Cola, Pfizer and Revlon to secure low price goods for its new non United States stores. The global expansion began in 1991 and during the first five years, Wal-Mart established a strong presence in Mexico, Brazil, Argentina and Canada (Govindarajan & Gupta, 2002). Today, Wal-Mart operates over 11,000 retail stores, with more than 6100 international stores (corporate.walmart.com, 2015). Wal-Mart’s international division is currently the fastest growing sector of the business (corporate.walmart.com, 2015). To continue their massive success, Wal-Mart will continue to open stores Worldwide.
Horizontal Market...

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