It turns out that Wal-Mart cannot be successful everywhere it sets up shop. While Wal-Mart dominates the American market, the biggest retailer in the world does not have stores in Germany, India, South Korea and Russia. American marketing strategies simply did not work on people from different cultures; German men did not like the way female clerks smiled at them, and the South Koreans were more interested in food and beverages rather than Wal-Mart’s wide selection of everything.
Coming from an Asian background, I can understand Wal-Mart’s difficulty in tapping into the Asian and European market. In Asia, consumers are used to purchasing groceries and other goods locally, and they are often cheaper and more accessible for those who do not own a car. The same can be applied to Germany; Germans can purchase food at German discount chains for cheaper prices than at Wal-Mart. Wal-Mart’s success in foreign markets is simply limited by the culture of the country.
After reading Michelle Wong’s post about Wal-Mart’s expansion into e-commerce, I agree that Wal-Mart would be successful in e-commerce, and they should focus on expanding that instead of their unsuccessful international operations. If Wal-Mart conducted extensive research into consumer behaviour and preferences through surveys, I believe that online shopping would be a very popular option among consumers, and that number will only continue to grow.
David vs. Goliath
Sources:
Berfield, Susan. “Where Wal-Mart Isn’t: Four Countries the Retailer Can’t Conquer.”BloombergBusinessweek. Companies & Industries, 10 Oct. 2013. Web. 11 Oct. 2013. <http://www.businessweek.com/articles/2013-10-10/where-walmart-i isnt-four-countries-the-retailer-cant-conquer>.
Landler, Mark, and Michael Barbaro. “INTERNATIONAL BUSINESS; No, Not Always.”The New York Times. World Business, 02 Aug. 2006. Web. 11 Oct. 2013. <http://www.nytimes.com/2006/08/02/business/worldbusiness/02walmart.html? pagewanted=all>.
Wong, Michelle. “One Stop Shop: Without Leaving Your House.” UBC Blogs. 15 October 2013. Web. 26 October 2013 <https://blogs.ubc.ca/michellewong95/>.