The Globalization of Walmart

The Globalization of Walmart
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The Globalization of Walmart
Walmart is by far the largest retailer in the world, with net sales of above half a trillion in 2019 (Forbes, 2021). Although the retail giant operated locally in the United States until 1991, Walmart has taken the global retail market by storm, outshining its competitor by a huge margin. The competitiveness of Walmart both locally in the U.S. market segment and globally can be attributed to several factors. The U.S. remains the largest market segment for the retail giant. However, the international market segment contributes a huge chunk of its revenues in sales, thanks to the well-structured international strategy that the company has also put in place since it entered the global market. The factors that influenced Walmart's entry into the international market, coupled with the challenges and uniqueness with the move, make the international market a major component of the company's strategy.
Walmart had exhausted its limit in the local market, with little or no room for expansion in the U.S. market as early as the 1980s. Also, Walmart's major competitors in the retail industry hail from the U.S. The international markets are thus the only viable opportunity for expansion, necessitating a well-structured strategy to allow entry into the global market environment. Incorporating an international market into the company's strategic plan also allows the company to maneuver the various challenges that come with managing international operations. For example, well-established retailers in Europe proved a challenge to Walmart, causing the company to focus on emerging economies such as Brazil, Argentina, and China. The international market revenues have also become a crucial part of the company's overall revenues, making it a crucial component of the company's strategy.
Cultural differences, the economic disparities between the U.S. and the emerging econo...