Topics: Wal-Mart, Africa, South Africa Pages: 15 (4912 words) Published: October 15, 2011
Will Wal-Mart succeed or fail in South Africa and Chile?

Research Paper

Research Paper Guide: XXXX

Submitted by: XXXX

Research Paper
Topic Will Wal-Mart succeed or fail in South Africa and Chile?

Hypothesis Labour issues, cultural differences, and logistics and supply chain issues in host country will stall Wal-Mart’s success in South Africa and Chile.

Objective To determine if factors such as labour, cultural differences, and logistics and supply chain impact Wal-Mart’s entry and operations in an international market, and if they do, how does it influence its long term success of failure in those markets.

Scope of the Research The domain of the research has been limited to two markets - South Africa and Chile - for these are two new markets where Wal-Mart has entered recently and hence, these will serve as a good opportunity to study the above mentioned factors and their impact on WalMart’s operations.

Research Methodology The research methodology consists of secondary research. 25-40 peer-reviewed journals and articles have been referred to as part of this research.

Expected Contribution This research paper will ascertain whether the factors such as labour issues, cultural differences, and logistics and supply chain issues in South Africa and Chile will stall WalMart’s success in these countries or not; and if they do, how will they impact its operations and growth in these countries. This will serve as a good learning for any global retail player planning to foray into any similar new emerging world market.

Justification/Need of the Research Wal-Mart, the US based world’s largest retailer, has been known to have carved many niches in the front-end and back-end of the burgeoning global retail sector, and has been successful in not only its home country but in many of its International forays too. However, not every International stint has been a smooth ride for the retail giant. The wide array of problems it’s faced in China and its exit from Germany and South Korea in the past, highlight a grave area of concern for all the stakeholders of the retailer. Hence, it becomes imperative to study these factors and tackle them, for these very factors are likely to now impact WalMart’s success or failure in its new International Markets - South Africa and Chile. A detailed understanding of these factors can help Wal-Mart fine-tune its strategies to gain a sustainable competitive edge in these markets, and establish its long term success there. These learning can then be leveraged while foraying into any new similar international markets in future, in order to avoid any unforeseen pitfalls in those markets.

Wal-Mart Wal-Mart Stores, Inc. is the largest retailer in the world, the world’s second-largest company after Exxonmobil and the nation’s largest nongovernmental employer. Wal-Mart Stores, Inc. operates retail stores in various retailing formats in all 50 states in the United States. The Company's mass merchandising operations serve its customers primarily through the operation of three segments. The Wal-Mart Stores segment includes its discount stores, Supercenters, and Neighborhood Markets in the United States. The Sam’s club segment includes the warehouse membership clubs in the United States. The Company's subsidiary, McLane Company, Inc. provides products and distribution services to retail industry and institutional foodservice customers. The use of new information technology enabled WalMart to know what customers were buying and to tell manufactures what to produce and where to ship the goods.

Globalisation & Wal-Mart’s International Expansions The world economy has undergone a radical transformation in the last two decades. Geographical and cultural distances have shrunk significantly which has allowed business corporations to widen substantially both their markets and their supplier sources. Globalization is about worldwide economic activity - about open markets,...

References: 17. Retail Internationalization: Gaining Insights from the Wal-Mart Experience in South Korea; Franco Gandolfi; Review of International Comparative Management, Volume 10, Issue 1, March, 2009
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