Business
Questions on Wal-Mart's International Expansion
Other than profit, what other reasons would Wal-Mart have for opening stores globally?
The pursuance of the international markets by WalMart has been the strategy adopted to enable the firm to continue growing profits. With less than 100 stores opening each year in the U.S. The market appears to be moving towards a saturation point, and new stores may result in a diminishing return. Opening stores in new markets will allow for the firm to continue growing and pursue profit, but there are also a number of additional motivations that could drive the international expansion.
The first reason may be linked to the diversification of risk. The firm is well developed in the U.S. market with a dominant position. However, when a firm has a significant amount of revenue coming from a single market, there is a risk of a downturn if that market suffers; for example economic shock (Mintzberg et al., 2011). If a firm is operating only in one country, and that country suffers a significant economic downturn, then the firm may suffer reduced revenues and lower profits, and may have to undertake new strategies to satisfy new market needs. If the firm...
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The differences in culture with the American culture will meant the American staff that may go to help open the branches in China will have to take quite some time to learn the culture and the ways of the people there. The other difficulty will be the language barrier that may exists between the Americans and the Chinese. It may even call for a translator in the initial days as
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8%) and all were s-commerce users. 58.2% were Korean natives, 14.6% were Chinese and 10.8% were American. 9.7% were European and 6.7% were Japanese. The majority used s-commerce to purchase tickets for entertainment (44.5%) and 67% had been using s-commerce for more than two years. The study shows that transaction safety (.480) and reputation (.450) both at the .01 level of significance, most contribute to trust in an s-commerce platform. The
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