Global Strategies and Risk Assessment and Mitigation Strategies of Walmart

Global Strategy and Risk Assessment – Walmart’s Case
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Table of Contents Introduction. 3 Part 1: Evaluation of Global Strategies. 3 Global Strategy. 3 Competitive Environment 4 Impact of Globalization. 5 Part 2 – Risk Assessment and Mitigation Strategies. 5 Mitigation Strategies. 6 Conclusion. 8 References. 9 Introduction
The company's massive international footprint presents Walmart with various challenges (Hitt, Ireland & Hoskisson, 2014). This report examines Walmart's international operations in detail, including the company's global strategies, competitors, macro factors, and potential risks.
Part 1: Evaluation of Global Strategies
Global Strategy
Walmart’s Historical Expansion. Sam Walton founded Walmart in 1962 and initially entered foreign markets cautiously. It now has a presence of 10,500 stores and clubs in 20 countries and eCommerce websites with extensive operations in China, Canada, and the UK (Kam & Rimmer, 2022). Walmart’s global reach is evident in its nearly 25% revenue from international sales.
Cultural Nuances Adaptation. Walmart’s international growth has been a story of adaptation and standardization. Their dedication to the “Everyday Low Price” strategy demands a combination of both. By acquiring the Woolco chain in Canada, Walmart was able to corner the market and later tailored its product line to suit regional tastes. Nevertheless, Germany presented various challenges (Hunt, Watts & Bryant, 2018). Thus, the company encountered challenges due to a lack of cultural awareness and an understanding of regional market dynamics.
Legal Compliance in Diverse Markets. Every region has a distinct legal environment. In some cases, Walmart has been the target of criticism and legal action, such as labor disputes in China (Lin, 2020). Walmart invests in legal training for its local employees to meet local standards (Bal & Pawlicka, 2021). Also, Walmart has collaborated with local governments in Mexico to comply with zoning and business regulations.
Economic Impact. The arrival of Walmart can have a significant impact on the local economy. Local suppliers have benefited from its sourcing practices in nations like India, where its “Direct Farm Program” supports thousands of farmers. Its sizeable purchasing power, however, can put excessive pressure on vendors to lower prices. Walmart’s extensive supply chain infrastructure generates economic benefits by creating jobs in retail and ancillary sectors (Sarker et al., 2022). However, Covid disruption in the supply chain, the adaption of technology, and n fluctuating exchange rates affect business performance (Musella, 2023). For instance, Walmart changed its pricing and product mix strategies in Argentina during economic downturns to stay adaptable and current.
Competitive Environment
Competitive analysis. Walmart competes fiercely internationally. In Europe, Walmart competes with established giants like Carrefour, and in China, the young e-commerce platform JD.com poses a significant threat. These two tech-savvy companies have a...