Wal-Mart Case Study

The forces and events that led to the growth of Wal-Mart business are traced far back in 1962 when Sam Walton founded it. It is apparent that many customers were attracted to the Wal-Mart business because it offered variety of goods at affordable prices.

As a result, the business spread all over the globe both as retail and as wholesale business thus paving way to many suppliers. Although the Wal-Mart business traversed numerous countries, it is obvious that it failed in some countries like German while at the same time it triumphed in others like the United Kingdom.

The success of the Wal-Mart business in the United Kingdom was attributed to the proper company management and the excellent consumer manipulation. To begin with, the Wal-Mart business procured the ASDA retail chain that was thriving so well in the United Kingdom and this meant that it was bound to succeed because the retail chain had already acquired a great portion of the market share.

Moreover, because the ASDA retail chain had acquired the Wal-Mart business strategies before its purchase, it served as the beginning of the accomplishment of the Wal-Mart business because it paved way for easy establishment of the business.

For instance, Wal-Mart business did not have to set strategies because the United Kingdom traders had already adapted its previous strategies and as a result, they did not have to campaign for awareness of their strategies but to focus on increasing the sales.

On the other hand, the approach of consumer manipulation stimulated the victory of Wal-Mart business in the United Kingdom because many customers were attracted to it. Additionally, the consumer manipulation was by means of offering variety of goods to the customer at reduced prices and this attracted customers of all ages and sex.

The charges that the Wal-Mart business did not gain popularity in German are for the reasons that Germans have an egocentric culture that the customers, suppliers and competitors embrace. In the eyes of the Germans, friendship is far much apart from business because they believe that after sales services make products expensive and they neither want their goods packed nor handled by someone else.

Unfortunately, Wal-Mart business based their success on the principle that a friendly atmosphere would increase the sales but the Germans did not value that friendship. Furthermore, the prognosis that the Germans would adapt Wal-Mart business system failed because the Germans emerged as hostile.

In support of this contention, a strained relationship existed between the Wal-Mart business and the German suppliers and, as a result, the signing of supplier contract was futile and it became difficult for Wal-Mart business to set up its infrastructures.

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Additionally, Wal-Mart business structured its supply chain in a manner that was different from German and consequently, the Germans did not accept it leading to failure of the Wal-Mart business.

Moreover, the economic competition that ensued in the German market resulted into impoverishment of Wal-Mart business because the German retailers had more customers who were conservative in nature and were not willing to give in to a foreign competitor.

Although, the rationale for retail regulation in German was to prevent monopoly practices and smother competition, German would benefit from a more liberal retail environment. It is perceptible that if establishment of business is not restricted to towns, more people would establish their entrepreneur close to peoples homestead and this would increase the sales because of increase in accessibility.

Additionally, the idea that price setting would prevent monopoly is unfounded because instead of streamlining the market prices, it would cause collapse of other businesses that cannot cope with the set price. For instance, Wal-Mart business did not survive in German because it could not cope with the regulated price. Besides, it did not have a chance to lower or raise its prices so that it fits the consumer demand.

Therefore, German need to allow individual businesses to regulate their own prices provided that exploitation of the customers does not occur. Furthermore, the idea of labor relation was the root cause of failure of many businesses in German like the Wal-Mart. This means that German should liberate its retail environment so that employers can determine the wages of their employees based on the company profit.

Finally, the concept of limited store hours paved way to economic downfall. This is because when the businesses were not operational, profit was lost and as a result, the economic growth slowed down. Therefore, Germans needs to permit unrestricted free business if it wants to increase its national income.

Wal-Mart has come a long way and it has survived many obstacles, therefore, in order for it to turn things around German, it should work collaboratively with the Germans because German has the largest customer market in Europe. Additionally, Wal-Mart should stop the tendency of introducing its culture to Germans but instead it should focus on embracing the German culture so that the indigenous people accept its products.

For instance, Wal-Mart business should not mix friendship with business because the Germans do not trust a business friendly environment. Finally, Wal-Mart business should focus on adhering to the German trade regulations because it would help them gain acceptability in German.

On the other hand, if Wal-Mart business wants to go against the set policies, it should consult the German government instead of implementing the changes without the Germans opinion. In this case, no one would be against them and as a result, they would traverse the German market.