Wal-Mart in 2005: Managing Globalization
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Case Code : BSTA137
Case Length : 18 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : US
Industry : -
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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.
Wal-Mart entered China in August 1996, with the opening of its first Supercenter and SAM'S Club in Shenzhen. Wal-Mart focused on providing quality merchandise at low prices. The retailer introduced advanced retail techniques and concepts to improve operational efficiency and customer service...
In 1997, regulations governing foreign retailers in South Korea were liberalized. Wal-Mart entered Korea in July 1998, by acquiring a majority stake in Makro. Wal-Mart purchased four former Korea Makro stores and also opened six new Wal-Mart stores: three in the capital, Seoul and one in Taejon...
In Japan, Wal-Mart decided the best entry strategy was to join hands with a local partner. Accordingly, in 2002, Wal-Mart paid $46.5 million for a 6.1 percent interest in Seiyu, Japan's fourth -largest supermarket...
Wal-Mart's experience in Germany (the third-biggest retail market after America and Japan), a country with 80 million people and the largest economy in Europe had not been entirely happy. In December 1997, Wal-Mart purchased the German Wertkauf group of twenty-one stores...
The United Kingdom
In the United Kingdom (UK), Wal-Mart had acquired ASDA, a profitable chain in 1999. ASDA had been formed in 1965 by a group of farmers from Yorkshire. Wal-Mart had kept an eye on ASDA for some time before seeking to purchase it...
The Road Ahead
Scott had publicly stated that over the next few years sales from the overseas division would grow to a third of earnings and sales growth. While Wal-Mart had kept its specific plans tightly under wraps, rumors floated about an acquisition in India, the Esselunga chain in Italy, France's Auchan, Carrefour, Cora or Casino chains, Poland's Casino Géant stores, Spain's Mercadona and Japan's Daiei or Aeon chains...
Exhibit 1: Impressive Sales Growth between 1995 and 1999
Exhibit 2: Top Five Retailer in Argentina by Market Share
Exhibit 3: Top Five retailers in South Korea by Market Share
Exhibit 4: Wal-Mart South Korea
Exhibit 5: Top Five Retailers in UK by Market Share
Exhibit 6: Pricing Philosophy
Exhibit 7: The Wal-Mart Cheer
Exhibit 8: International Operations
Exhibit 9: Stores Breakup
Exhibit 10: Wal-Mart's Store Count
Exhibit 11: Wal-Mart's Operations
Exhibit 12: Financial Highlights