Walmart’s Expansion in Africa: a New Exploration Strategy

In: Business and Management

Submitted By andreeamirel
Words 3069
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The mission statement for Walmart is a simple statement to focus on consumer needs. “We save people money so they can live better. If we work together, we’ll lower the cost of living for everyone we’ll give the world an opportunity to see what it is like to save and have a better life”(Walton S.)
Walmart’s company culture includes a list of values and beliefs it establishes through its management and employee relations. The company’s marketing efforts are to establish awareness that they are the price leaders in their market. In recent times, the company has focus on becoming involved more in local communities by charity and service.
With the general instability of the global economy, corporations like to play it safe; Walmart is an example of a multinational which is making a bold move. Acquiring South African grocery chain Massmart offered Walmart a safe foothold to prepare for the next step, which is continental expansion. South Africa is arguably the most westernized country in Africa. Western companies in general perceive it as easier to do business there than in other African nations.

The SWOT analysis of Walmart shows that the company can have higher long-term success potential through aggressive global expansion, especially in retail markets in developing countries.
Walmart’s strengths are all related to the size of its business. These strengths enable the company to withstand threats despite its weaknesses. Walmart’s strengths for further global growth are:
• Huge and loyal customer base
• Global organizational size
• Strong employee base
• Strong financial position
• Low price strategy, special buy and roll back strategy
• Power brand in retail industry
• Core competencies includes high efficiency of information technology, global supply chain and inventory
• Huge market share in USA…...

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