Question

Establishing business in your own country is hard enough, so imagine doing so in others. Now take it a step further by thinking of the barriers you have to overcome when you're a mogul in the game, hence Walmart and Amazon. Wouldn't it be intimidating if these businesses were asking to set-up shop within your country? When researching how both organizations entered different markets in varied countries, provide details on the political and economic hindrances they both faced. Next, highlight the ways in which they were able to overcome these roadblocks and penetrate these markets regardless.

Answer 1

Both these companies are still facing problems on political and economic areas. Politically the major problem is to convince the local governments that they are their for business and providing their services to the consumers and not to harm the national interests of local government. There are many political ideaologies in almost every country. Many countaries are having exterme nationalism political parties. These political parties with hardcore nationalism ideaology creates the problems for these mutlinationals. It does not matter whether these political parties are in government or opposition. When they are in government, they make such policies which creates hindrances for these multinationals and when they are in opposition, then also they create pressure on the rulling party to make such policies which create Hindrances for these multinationals. On economic front, they have to face the economic policies of the host countries. The economic policies of the host country could either be liberal or conservative. If economic policy of the host country is liberal, then these multinationals face less problems but if economic policy is conservative then this create a lot of hindrances for these companies. Despite Political and Economic policy hindrances, both these companies ae successful in entering in many of the countries due to their local strategy. Thes companies deeply study the social, economic, financial, political and other factors of the host country and accordingly draw a strategy before entering these local markets. They believe in aggressive marketing and giving a tough fight to local competitors. Their local tie ups are very strong. Both these companies believe in strong local tie up with local distributors and wholesaler.