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Wal-Mart
Introduction number of companies today are experiencing financial setbacks and bankruptcies.
It is important to examine Wal-Mart and understand how the company is functioning in the economy today.
Marketing
Wal-Mart standardizes its global marketing strategies with methods such as global sourcing. This global marketing strategy is aimed at improving a product's quality, lowering its price or gaining efficiency.
Wal-Mart has become a global firm as it has learned to incorporate proven marketing strategies of the countries it has expanded to. The company has done well in Canada, Mexico, Puerto Rico and the United Kingdom, which could be attributed to the fact that consumers in these markets are looking for more for their money, and have lower incomes.
Wal-Mart will do well in the Russian market, however it needs to be aware of the depressed economy the country is experiencing. Wal-Mart may do well in Japan, however, it should remember that the consumers there are similar to those in Germany, and take actions accordingly. The company should consider expanding into Australia and New Zealand next. These countries have a similar market to that of Canada and the United Kingdom, which they have had proven success in.
Problem
Wal-Mart entered the international market 10 years ago and has had great success in a number of countries. There are some markets, however, in which they are having difficulties realizing a profit. In Germany, Wal-Mart tried to expand too quickly and didn't completely understand the type of consumers in this market. Wal-Mart needs to conduct detailed studies to find out exactly what these consumers want in order to increase sales. The company should also consider not expanding in this country until it starts to realize a profit.
As of yet, Wal-Mart has not shown in profit in this market, although they are currently working on new strategies.
Conclusion
Although Wal-Mart has not excelled in Germany, it is the largest retailer in the world. Its sales continue to grow, and the company had a 12.3% increase in sales worldwide during the past year (www.wal-mart.com).With its current marketing and employment policies, Wal-Mart should continue to grow in the future as not only a preferred place to shop, but a good place to work as well.
Works Cited
Annual Report. (accessed 06 December, 2003). www.wal-mart.com).
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