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When expanding outside of the United States, what competitive advantages does Walmart bring into new markets? What disadvantages does it have?

Marketing Dec 21, 2020

When expanding outside of the United States, what competitive advantages does Walmart bring into new markets? What disadvantages does it have?

Expert Solution

Walmart has a strong presence in the United States on all fronts. When expanding into new countries, Walmart definitely has the advantage of size. This means that they can pull their weight financially and are not too worried about initial operating losses. It takes little for Walmart to win its suppliers over. With several years of practice, Walmart has learnt to optimize management systems to have smooth operations. Thus, in a new location, Walmart is not starting from the bottom; they have a head start already. On the flip side, however, Walmart is very Americanized. Its modus operandi is suited to a particular market type, which brings forth a cultural barrier to infiltrating other continents, for example, Asia. Europe is closer Geographically and perhaps culturally, but there are established market players such as the French retailer Carrefour and the German retailer Metro AG. To enter this market is to compete on foreign soil for a foreign market.

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