CASE STUDY - Walmart TNC

Question 1

When was Walmart founded?

Answer 1

1962

Question 2

How many Walmart stores are there worldwide?

Answer 2

Over 11,000

Question 3

When did Walmart become an international company?

Answer 3

1991

Question 4

How has Walmart had to adapt its global marketing strategy in favour of glocalisation?

Answer 4

Walmart localised its product range to adapt to local cultures - the vegetable section in Chinese Walmarts is double the size of American Walmarts and products such as chicken feet and pickled lettuce are available.

Question 5

What are the advantages to China of Walmart operating there?

Answer 5

1. 85% of products sold in Walmart China come from 14,000 Chinese suppliers
2. More likely to attract more US tourism due to familiarity of the brand

Question 6

What are the likely advantages for Walmart operating in China?

Answer 6

1. In 2002, Walmart purchased $6 billion worth of goods from China - economies of scale lead to reduced unit costs, this gives them huge pricing leverage over competitors.
2. Able to achieve long term strategy ‘to be where we’re not’
3. Lower labour costs than the USA due to more lenient labour laws

Question 7

Outline the potential conflicts that might arise from Walmart operating in China.

Answer 7

1. Poor employment practices and regular lawsuits could damage the brand reputation
2. Civic activists have accused Walmart of turning central business districts into ghost towns (franchising of Walmart)
3. Competition with Chinese brands