Question

Walmart entered in some countries through acquisitions and in some countries through greenfield investment. What entry mode do you think was best? Provide reasoning. Did location characteristics drive the mode of entry? Why?

Answer 1

Walmart's international expansion has been quite diverse and they have applied their strategy based on the country they are targeting for the expansion. In some of the countries they have just used the strategy of acquisition where they have acquired an existing organization and has been quite successful in their venture of expansion. In some other countries they have use the strategy of greenfield investment which is setting up of all the facilities and factors that the organization plans to establish in a foreign country. I think that even if we cannot directly state that the ei8ther of the method is better because it depends quite a lot on the type of country the organization is dealing with. for example the strategy should be appropriate based on which country they are planning to expand and I believe that on a whole acquisition is better because in acquisition the process i simple where the organization takes over stock of an organization and establishes their own brand value with the help of the organization acquired. In this process there is minimum government involvement but in greenfield investment the government is actively involved and therefore is complex and time consuming.