Wal-Mart's German Misadventure

            
 
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR082Electronic Format: Rs. 400;
Courier (within India):Rs. 25 Extra
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Themes

International Marketing
Case Length : 13 Pages
Period : 1990 - 2003
Organization : Wal-Mart
Pub Date : 2004
Teaching Note : Available
Countries : Germany
Industry : Retailing

Abstract:

The case focuses on the retailing giant Wal-Mart and its experience in Germany. The case explains in detail the reasons for Wal-Mart's decision to go global in the early 1990s, and its decision to enter the European market through Germany - the most difficult market in Europe. The case discusses the problems faced by the company in Germany due to its lack of understanding of the German retailing and regulatory environment. The case discusses in detail the various problems faced by Wal-Mart in Germany - entry strategy problems, problems in the operational environment, regulatory problems and cultural problems.


Issues:

Understand the nature and structure of German retailing industry including its size, scope, spread and unique characteristics

Highlight the implications of entry through acquisition in an overseas market

Contents:

  Page No.
German Blues 1
Background Note 2
Business Segments 2
Wal-Mart's International Operations 3
Wal-Mart in Germany 5
Entry Strategy Gone Wrong? 5
Problems in Operating Environment 6
Problems in External Environment 7
Cultural Mismatch 8
Future Prospects 9
Exhibits 11

Keywords:

Retailing giant, Wal-Mart, Germany, global, 1990, European, Germany, retailing, regulatory environment, rational environment, regulatory problems, cultural problems

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