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Sample Essay

Asia and Europe offer Wal-Mart opportunities for global market because the European and American consumers have somewhat similar consumer preferences and the language barrier is also not present due to which it is easier to present to the consumers what services and benefits they get when they shop at Wal-Mart.

As mentioned in the case study that Wal-Mart met with success in Japan and China in 2005 and its international operating revenues touched $2 billion and an increase of 16.6% was noted (Yoffie 04) The management style of people in both Asia and Europe are vastly different and as Wal-Mart continues to expand and acquire foreign companies, it also inculcates a global culture and improvements in management style such as in the case of Seiyu in Japan and also China where technology helped the integration of management techniques and forecasting methods. Inventory had a 94% match rate in Japan which is also the highest amongst the world. In Europe, ASDA became part of Wal-Mart in 1999 and soon surpassed Marks & Spencer as the leading retailer of children’s wear by taking over management of 256 ASDA stores, 7 GEORGE apparel stores, opening the first Wal-Mart-ADSA co-branded supercentre and employing 134,000 associates (Yoffie 03). In Japan, it found opportunities in ailing retailers and it can further develop that business strategy and acquire more small scale retailers and merge them into supercentres or bigger retailers. It also saw successful openings of SAM’s CLUB in various areas such as in Shenzhen in August 1996. Because cost effective labor force is available in Asian markets Wal-Mart has also considered unionization of employees to some extent.

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