What are the major reasons for wal-mart's decision to go global?
Answers:
Usually "globalization" is used to mean economies of scale. From a couple of the answers here, it would seem to mean economies of power in some people's opinion. This might have some truth, but Walmart does offer value from economies of scope. For example, its entry into the UK was done via purchasing a grocery store chain. From this it acquired a logistics channel for produce which it has gleaned expertice and procedures which it now uses in the US as well.
Its expansion into Canada was done by acquiring Woolco, which was floundering at the time. This seemed more of an opportunistic expansion than a deliberate attempt to focus internationally.
Gupta & Govindarajan 2003 suggest that Walmart's international expansion is as much opportunistic as it is an intentional effort to foster development of local idea that can be used in other locations (like the UK logistics example). There are instances where Walmart's existing abilites were able to outcompete incumbents in new markets, like Korea's "I" mart. Little discussion is ever mentioned about Walmart's blasting of its real number 2 rival, Carrefour, in Brazil where the locals found it the best value and customer service freindly department store yet.
Anyhow, economies of scale and economies of scope are the broadest reasons that Walmart has expanded. There have been some opportunistic moves, but Walmart claims (and seems to follow) a belief in large strategic initiatives rather than piecemeal grabs at new directions.
No, I do not nor never have worked at Walmart. I use Walmart as an examples in business cases to demonstrate various aspects of business unit, corporate and enterprise strategies.
to spread amerikan propaganda over the world. the first step is to dispatch the fast food restaurants, that softens them up then they unleash the beast that is WAL-MART. the amerikanization of the world is easy after that.
To increase their PROFIT
To make more money and to monopolize. Walmart would like to put every other retailer on the planet out of business.
Walmart' like most other businesses would like to become a monopoly in their sector, and eliminate all competition.
In any business where we have a monopoly, services are usually poor, and prices are usually high. Examples
(1) government services (education, police, taxation, social security etc)
(2) cable television
(3) gas companies
(4) electric company, water and utilities
(5) Microsoft - practically a monopoly.
(6) Telephone companies - used to be monopolies.
Walmart, Starbucks, Home-Depot etc are slowly working to monopoly status as they shut down the smaller retailers, coffeee houses, bistros, and mom & pop businesses wherever they go.
Do you really want to see a Starbucks in the forbidden city in China or in France where a small "Chez Pierrot's" bistro used to be?
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