Pres Article: Walmart in Germany

Question 1

What was wrong with Walmart’s cultural approach in expanding to Germany? What’s an example?

Answer 1

Did not study German culture and failed to adapt. Ex: Do not want to be greeted with smiles. Wanted smaller stores

Question 2

What was wrong with Walmart’s business approach in expanding to Germany?

Answer 2

Did not understand German laws - tried selling products below manufacturing costs.

Question 3

Which companies did Walmart in Germany struggle to compete with?

Answer 3

Aldi, Lidl - low-cost leaders that appealed to German shopping habits.

Question 4

What does the author argue was the issue with Walmart’s failure in Germany?

Answer 4

It was not Germany’s high labour costs or union power that was the problem. It was Walmart’s inflexibility of local conditions.