Professional Documents
Culture Documents
Wal-Mart entered into Germany in 1997 and faced number of problems which
are listed below:
Wal-Mart was not able to understand the culture of Germany and their
managing inventory.
A bad word of Mouth for Wal-Mart was created by the employees which
Categorization of Problems:
External Environment(PEST)
Factors
Government support to local players
was a threat to Wal-Mart.
Also various laws were imposed on
Political
Economical
environment.
It was a price sensitive economy
Cultural Mismatch of Germany and
U.S. Culture.
Germans had
Socio- Cultural
preference
different
and
taste
altogether
and
a
Technological
Which
Category
did
Wal-Mart
encounter
the
most
German Market and Failed to adapt itself with the same which lead to a huge
loss in terms of profit and in terms of Brand image. When a Company goes
international it has to comply with the norms, Culture, rules and regulations
of the host country which was not done by Wal-Mart. It stick to its traditional
method of working which proved a disadvantage to them.