WalMart International Expansion Literature Review WalMart International Expansion Literature Review Introduction While a company aims for international expansion, there are lots of factors that it needs to consider regarding the country in which it aims to expand its operations. Some of the factors are the barriers to entry, the current and future growth prospect, cultural differences, GDP growth, Political stability etc. In this case it is seen that the reason behind widespread success of Wal-Mart in foreign locations is due to the fact that it has taken into consideration the aforementioned factors. The following pages analyze the case of entry of Wal-Mart into South Africa and the opportunities and challenges that were faced by the company in South Africa are also discussed.
Wal-Mart markets sell everything — from groceries and clothes to electronics and even cars. Some argue that this retailing company provides much-needed jobs to the neighborhoods, thus supporting local communities Kneer, However, critics disagree and claim that Wal-Mart adversely affects independently owned small businesses that cannot compete with this large corporation Lutz, In this essay, I argue that Wal-Mart is indeed detrimental to local economies, as it eliminates more jobs than it creates.
Let me begin by looking at some of the positive effects attributed to Wal-Mart stores. Research published in showed that neighborhoods with Wal-Mart supercenters enjoyed gains in taxable retail sales and the increase in total retail business permits Walmart, However, given the fact that no other reliable studies have confirmed these findings, the results resemble a well-planned marketing campaign.
Furthermore, Wal-Mart stores offer a great variety of cheap products and goods, which means that people can buy more by spending less Semmens, However, evidence suggests that all the negative effects of Wal-Mart outweigh the positive ones.
To begin with, Lutz argued that the main disadvantage of these stores is their location.
Typically situated on the outskirts, these large stores pay less in taxes compared to small markets located in the downtown. As a result, one large Wal-Mart store contributes less in retail and property taxes compared to a smaller building in the center Lutz, Moreover, although Wal-Mart is larger than any neighborhood stores, it gives fewer jobs per acre than downtown businesses do.
In this way, the comparison shows that small local businesses are actually more beneficial for the neighborhoods compared to their large competitor. Moreover, many critics have argued that Wal-Mart employee policies discriminate workers.
It is believed that the corporation pays poverty wages and forces its employees to work overtime Semmens, Studies show that Wal-Mart stores negatively affect individual businesses, which contribute to the local economy more than this multinational corporation de Blasio, Small shops located in the neighborhoods cannot compete with the giant retailer and suffer significant sales declines.
Many owners have to go out of business because people simply stop buying enough products in smaller markets de Blasio, It is also important to note that Wal-Mart costs too much for taxpayers because of thousands of its associates who qualify for Medicaid. One may also mention several cases of tax avoidance attributed to Wal-Mart, which once again demonstrate that the impact of this corporation on local economies is extremely detrimental.
To summarize, I would like to say that despite active marketing, Wal-Mart stores are perceived as the example of the corporate greed. Although some studies show that this retail chain positively influences local communities, there is little evidence to believe in this claim.Excerpt from Essay: Wal-Mart International Expansion International Expansion (Wal-Mart) Company Background Wal-Mart Stores, Inc.
is the prime retailer in the world, the world's second-largest company after Exxonmobil and the nation's leading nongovernmental company. This paper provides a strategic audit of Wal-Mart's international division, including a SWOT analysis, and makes recommendations for the future.
Wal-Mart faces stiff competition in both its domestic and international markets; however, Wal-Mart has a huge lead over its competitors. Wal-Marts sales were more than twice that of the combined sales of its two closest rivals (Home Depot 65 Billion & Target 50 Billion).
Wal-Mart is often considered to be the most American of all corporations. Huge, monolithic, and dominating, Wal-Mart is the source of labor controversy, pricing debates, and a horde of other major issues.5/5(2).
Wal-Mart is a household word in the U.S., but it is quickly becoming a well-noted name in the international realm. Wal-Mart became an international company in when a Sam's Club opened near Mexico City. Wal Mart Essay.
numerous small competitors such as Target and K-Mart. There is a low industry growth so the degree of rivalry is increased as well as the lack of differentiation between products which brings little separation between competitors.