The Death of Wal-Mart

Competitors Poor locations Poor labor practices and poor track record Ethnocentric / American-style management practices in the workplace Poor attention to target market detail Cultural differences Lack of Experience with acquisitions and mergers Merchandising mistakes Refused to acknowledge the differences in customer behavior in Germany.

Rank 32.0

Company

Revenues in Germany (Bil..Euro)

1 2 3

Metro AG Rewe Group Edeka/AVA/Group

32.0 28.6 25.2

4
5 6 7

Aldi Group
Schwarz Group Karstadtquelle Tenglemann Group

25.0
17.2 16.1 12.5

8
9 10 11 12 13 14

Lekkerland-Tobaccoland
Spar Group Schlecker Globus Dohle Group Wal-Mart Germany Norma

8.2
7.5 5.3 3.4 2.9 2.9 2.4

15

Bartels-Langness

2.1

Lessons Learned
85 stores not enough to gain foothold on market Concentrate on local traditions, conform to local laws and regulations, German customers don't like receiving American-style service when they're shopping

Cross-cultural business is a challenge even for the biggest companies

Firms must localize their marketing strategy , not to ignore the local culture, local buying habits