Walmart

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Walmart

Over the past years, Walmart is a leading retailer that has extended its operations to many countries. Currently, Walmart has its operations based in nine countries, and additionally, the multinational corporation is also extending its global trade to other 27 nations (Courtemanche et al, 2017). The continuous trade and globalization have enabled Walmart to have entry into new markets, and thus, it has continually attracted a new bunch of investors over the years. However, many challenges come with the expansion of Walmart to other countries like India. Internal or external factors can buy the challenges. The internal challenges are typically bought by the fact that the company sees itself as unbeatable. As a result, stiff competition is one of the main challenges that is facing Walmart. Another huge challenge is the company’s government restrictions while trying to expand its operations to other countries. In India, Walmart’s main challenge is the government restrictions that the Indian government imposed upon multinational corporations (Rajan, 2020). The governments made Walmart acquire their retail through the Mom and Pop Stores, which had a considerable dominance in the retail sector.

Some lessons can be learned from Walmart, especially in expanding the business activities in other countries. The first lesson is related to the choice of market. Choosing a fair market is essential. For instance, Walmart had the opportunity to choose the Asia or European markets because the markets have many consumers, but instead, it did not. Therefore, choosing the correct market is essential. Another great lesson is that a company should consider the mode of entry of starting a business in a foreign country. Modes of entry can include building an alliance with other corporations or partnering with other companies. Also, this will help combat stiff competitions that are facing the corporation. However, it is essential to undertake detailed market research before expanding business activities to new markets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Courtemanche, C., Carden, A., Zhou, X., & Ndirangu, M. (2019). Do Walmart supercenters improve food security?. Applied Economic Perspectives and Policy, 41(2), 177-198.

Rajan, T. (2020). The Flipkart Story in India: From the Start to Walmart. Asian Journal of Management Cases, 0972820120914526.