Question

Read the attached article called "Emerging markets: Lessons from Walmart" (Jopson, 2011) and answer in a concise, short post the below questions: - What were the biggest challenges for Walmart? Why? - What are the top opportunities for Walmart in those countries? Why? Emerging markets_Lessons from Walmart .docx

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Answer 1

The Biggest challenges for Walmart were as below:

1. The Challenge that Walmart faced in India was the change in planned reforms that would have allowed foreign retailers to own majority holdings in local supermarket chain.Walmart has thus only set up a joint venture with Bharti Enterprises, an Indian conglomerate, to run a small wholesale supply business that would provide the foundation for an expansion into retail. However this has a limit on how much a foreign investor can actually invest.

2. The difficulties that Walmart faced in Russia is that any acquisition comes with a lot of corruption and governance. Corruption ultimately slows the growth and expansion of the company as a whole.

3. It also faced challenges in China where it was accused of mislabelling ordinary pork as organic and was asked to close 13 stores for two weeks. This was a big blow in a country where, against a background of food safety scandals and deep consumer concern, foreign grocers use the quality of food to differentiate themselves.

4. In Brazil it was accused of forcing a single merchandising and marketing message.

The Top opportunities for Walmart in these countries are as below:

1. There is a great opportunity for Walmart for expansion in these countries through joint ventures, acquisitions, etc.

2. Most of these countries need a greater amount of foreign direct investments in the country and thus this creates a greater opportunity for Walmart.

3. Walmart would have a greater presence and its sales would grow even further through expansion.

4. Since Walmart is far more innovative it has better chances and opportunities to compete globally.