Wal-Mart Readings Assignment

Both of the articles, Wal-Marts Foreign Expansion and Wal-Mart Finds That Its Formula Doesn’t Fit Every Culture discuss how Wal-Mart has adapted to the demands of local customers as they continue to bring their company to countries all over the world. Although they have not been successful in each of the countries they have tried to bring their business into, Wal-Mart has learned that in order to be a successful company in foreign countries, they must adapt to the cultural differences. One initiative that Wal-Mart took to improve and adapt to their international locations was hiring local managers who understood the local culture. 1. I think that it depends strongly on the country and what the desires of the consumers in that county. In poorer countries, people may be looking for goods that can be offered at a lower price, such as in Mexico, which is why it worked out so well for Wal-Mart. However, although low price is important, cultural customs play a big role and that may interfere with the company’s success. 2. The reason that I believe Wal-Mart was successful in Mexico, was because the company hired local managers that were able to relate to and understand the locals’ needs. Once they were able to figure out that the shopping habits of the Mexicans were different to the Americans, they were able to fan out their success. The people of Mexico were looking interested in smaller stores that offered more fresh produce. So what did Wal-Mart do? With the help of the local managers, Wal-Mart was able to build smaller stores that locals could walk into daily and be offered fresher produce. By building up its distribution systems in Mexico, Wal-Mart was able to lower its costs, which caused Mexicans to change their shopping habits and purchase these cheaper goods. Today, Wal-Mart is Mexico’s largest retailer. 3.