Wal-Mart has become a mainstay in American's shopping experience. Wal-Mart has also been scrutinized over the past 10 years with less favorable opinions of the organization's corporate culture. Wal-Mart has also been noted as a leader in incredible logistics and supply chain management strategies, and is known by some to be a master at managing inventory.
Wal-Mart's entry into the international markets was not without issue. Wal-Mart's plan to enter the African markets was considered extremely risky. Africa, with its poor political and economic conditions, did not offer the best of markets. However, Wal-Mart saw an opportunity. Review Case 20: Wal-Mart in Africa (pp. C295-305) and watch the video, "
After reviewing the case and watching the video respond to the following points and questions (Must provide resources and in text citations):
- Describe Wal-Mart's international strategy leading up to its acquisition of Massmart in Africa.What did Wal-Mart learn from its experiences in Germany, Japan, and South Korea?
- What grade would you give Wal-Mart for its performance to date in diversification into international markets?
- Explain how Wal-Mart should resolve the tension between market pressures to localize its product offerings country by country and competitive pressures to lower costs.
- In your opinion, was buying controlling stake (51%) in Massmart in Africa the best strategy for entering the African market?
- Should Wal-Mart adapt its business model to better suit local conditions in Africa? In what ways? What are the pros and cons?
- Research Wal-Mart's current position in Africa. write a very brief SWOT analysis. In your opinion, did Wal-Mart make the right decision to enter Africa?