Walmart has attempted international expansion numerous times in its lifespan. Some have been successful, others have failed but for every case the result has been dependent on their understanding of the local environment and preferences. Walmart has a very clear and differentiated market position; they sell product in large quantity for cheap prices. In the United States and Canada consumers are very receptive to this format as they appreciate the cheap prices and find the quality to, at least, rival that of most competitors. However, in other cultures the bulk products are sign of low freshness and the cheap prices give the consumers a perception of low quality.

Inside of a Walmart Super Centre

Walmart has made poor decisions in assuming the strategy they have employed in the United States would have the same effect in countries around the world. A product will not become successful if it is not greatly accepted by consumers upon its inception. If Walmart is not successful in realizing local trends and habits then their products will not even be considered as a possible alternative when the consumer undergoes the decision process. Sure, Walmart could attempt to entirely alter the culture of various nations in order to sprout belief that their product fills an overwhelming need. Would it not make more sense to alter their own market offering in order to coincide with the needs that are already there.

Big Baazar, a rival supermarket

Adapting to cultural differences may pose a threat to the company as a whole because as their company changes they lose brand identity. If each region of stores is tailored to local needs customers will become confused and could quite possibly change their perception of the company entirely. It is possible that the only option is to continue absorbing similar companies already located in the international regions in which they target. With as much uncertainty as there is in the global market place it will be very interesting to see what the next move of Walmart will be.

Related Article: http://www.forbes.com/sites/walterloeb/2014/03/26/walmarts-international-challenge-trying-to-understand-local-shoppers/