What factors and conditions influenced Wal-Mart to select the entry mode it used to enter each of the five countries?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter15A: Auction Design And Information Economics
Section: Chapter Questions
Problem 2.2CE
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Wal-Mart Overseas Entry
By the 1990s, top-level managers at Wal-Mart Stores (WMT) had concluded that successful
ventures into markets outside the United States were critical to the firm's long-term growth in
sales and profitability. A strong, cost-control-oriented corporate culture, a highly efficient
distribution system, and market power were competitive advantages on which Wal-Mart's
domestic success had been built.
Executives felt that being able to duplicate these competitive advantages would be critical to its
efforts to effectively compete in economies other than its domestic U.S. market. In considering
how that different modes of entry should be used to enter different markets. This decision found
Wal-Mart using multiple modes of entry rather than a single mode of entry into international
markets.
Part One
For this part of the exercise, use the Internet and other sources of information available to you to
research Wal-Mart's international operations in the countries appearing in the list below.
For each country, you should determine and discuss the entry mode Wal-Mart used to enter each
country market (use the entry modes discussed in class to make this determination).
• Germany
• China
• United Kingdom
• Japan
. Mexico
Part Two
Answer the question below with respect to each of the countries listed in Part One of the exercise.
What factors and conditions influenced Wal-Mart to select the entry mode it used to enter each of
the five countries?
Transcribed Image Text:Wal-Mart Overseas Entry By the 1990s, top-level managers at Wal-Mart Stores (WMT) had concluded that successful ventures into markets outside the United States were critical to the firm's long-term growth in sales and profitability. A strong, cost-control-oriented corporate culture, a highly efficient distribution system, and market power were competitive advantages on which Wal-Mart's domestic success had been built. Executives felt that being able to duplicate these competitive advantages would be critical to its efforts to effectively compete in economies other than its domestic U.S. market. In considering how that different modes of entry should be used to enter different markets. This decision found Wal-Mart using multiple modes of entry rather than a single mode of entry into international markets. Part One For this part of the exercise, use the Internet and other sources of information available to you to research Wal-Mart's international operations in the countries appearing in the list below. For each country, you should determine and discuss the entry mode Wal-Mart used to enter each country market (use the entry modes discussed in class to make this determination). • Germany • China • United Kingdom • Japan . Mexico Part Two Answer the question below with respect to each of the countries listed in Part One of the exercise. What factors and conditions influenced Wal-Mart to select the entry mode it used to enter each of the five countries?
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