Walmart’s Global Strategies
Many multinational companies continue to adopt globalization. Companies are opting for globalization to increase their sales and profits and to satisfy capital market expectations. Walmart Retail Company is a perfect example that has implemented strategies to survive in the global world.
Walmart’s internationalization was motivated by several factors. Firstly, Walmart was willing to globalize beyond America, as it had saturated local markets in the USA (Adekola & Sergi, 2017). It continued to localize until it had flooded all the domestic markets in the USA. Thus there was a need for internationalization to fetch markets in other countries. Additionally, Walmart retail shop was motivated to serve more customers beyond America’s environs (Adekola & Sergi, 2017. These factors necessitated the need for Walmart retails to go global.
Walmart adopted several marketing strategies for internalization in different countries. Global strategies aimed at obtaining new opportunities in the worldwide market. The globalization process was not easy, especially deciding which country to enter first. Walmart adopted the best entry mode in Mexico. First, the company was familiar with income and cultural differences between the United States and Mexican markets(Panibratov, 2017). Therefore it had to tailor its operations strategically. The company engaged in a joint venture with Cifra, one of Mexico’s largest retails (Tsui-Auch & Chow, 2019). The profits obtained were shared equally between the two companies. Thus its the success of globalization in Mexico. The company should pursue other multinational strategies to have a competitive advantage over its competitors.
To succeed in the global market, Walmart should pursue global strategies. Adoption of a global strategy will enable the company to have a competitive advantage over its competitors. Walmart should pursue a low pricing strategy. Through this approach, the company will sell its products at lower prices than its competitors and acquire more customers to shop with them. Additionally, Walmart Company should increase its online stores to enable its customer to shop online without physical visitation. Walmart should strive to adopt more global strategies to have a competitive advantage over its competitors.
Walmart has adopted several entry modes and global enterprise strategies to enhance internationalization. However, Walmart should improve some of its strategies to remain more competitive. A low pricing strategy allows the company to obtain more customers. To foster this strategy, the company should buy products in bulk to reduce each product’s cost per unit. This move will allow the company to continue selling its products at a lower price than its competitors and still make profits from higher sales made.
In conclusion, Walmart is one of the companies that has internationalized its operations in the global market. It has expanded its markets in different countries to utilize secondary markets beyond America. Walmart’s globalization success is due to its global strategies such as low pricing strategy. The company should adopt more global strategies to remain competitive.
References
Adekola, A., & Sergi, B. (2017). Global business management. Routledge Taylor & Francis Group.
Panibratov, A. (2017). International strategy of emerging market firms. Routledge.
Tsui-Auch, L., & Chow, D. (2019). MNEs’ Agency Within Institutional Contexts: A Study of Walmart’s Post-acquisition Practices in Mexico, Germany, and Japan. Journal Of International Management, 25(2), 100655. https://doi.org/10.1016/j.intman.2018.11.001