History Overview

1962: Walton Brothers opened first

Walmart in Arkansas
1970: Walmart become public
1990: 1st national retailer
1991: international expansion
2003: largest corporation in the world
2014: 1st among the fortune 500
companies

Resource Based view of

the firm
Compete valuable
ncy

rare

Difficult
to
imitate

Difficult
conclusi
to
on
substitut
e

Integrate
d
technolog
y of
supply
chain

yes

yes

yes

yes

Ability to
generate
large
sales
volume

yes

No

No

yes

Comp.
parity

Superior
logistics
system

yes

yes

yes

yes

Sustainab
le comp.
adv

Sustainab
le compt.
adv

Main Competitors
Retailer industry: Target

Supermarket Industry: Dollar General

Internationalization
Forces favouring globalization
Saturated domestic market
Emerging markets with lower
disposable income offer huge
platforms for growth
Economic of scale
Growth
Revenues reduce political risk

Mode of entry of international

expansion
Year

Country

Mode of Entry

1991

Mexico

50% JV Cifra

1994

Brazil

60% JV Lojas Americana

1994

Canada

Acquisition Woolco

1995

Argentina

Wholly owned susbidiary

1996

China

New openings, JV,

acquisition

1998

South Korea

Acquisition

1999

U.K.

Acquisition of ASDA

2002

Japan

Acquisition

2002

Germany

ACQUISITION of Wertkauf &

spar

2007

India

JV

2011

SOUTHERN
African

Acquisition of Massmart
holding ltd

Example of international
Success
Mexico:
38 % retail market share in Mexico
Canada
one of the most successful international
expansion
Acquired Woolco stores & changed structure
China
Adaption to market
85% of products from local suppliers
Most populous country

Example of international
Failure
Germany
Culture differences
Unable to become cost leader
India
Political & legal barriers
Foreign companies are not allowed to
set up
big stores unless they
sell only one brand