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Overview
Introduction
The Growth of Walmart
International Expansion
The Secret of Success
Why is Africa so attractive?
Massmarts acquisition
Growth strategy
Expected strategic advantage
Challenges
The Year 2011
International Expansion
Mexico (1991)
Canada (1994)
Argentina (1995)
Brazil (1995)
China (1996)
India (2007)
South Africa (2010)
OUT: Germany, South Korea and Japan
approach
EDLP
Offering extended
services
Adaption to local cultures
3 magic principles
Respect the individual
Service for customers
Strive for excellence
Why is Africa so
attracitve?
Emerging market
Expected growth of 5 %
Important market
infrastructure
Entering Africa
Growth Strategies of
Massmart in the African
Continent
Founded in 1990
Second largest distributor of consumer goods:
and investment
Business model
Chain
Private
Brands
Financial
New
services
format stores
Sustainability
The problem
Massmart lay-off closely linked to the
merger
Walmarts use of its influence to boost imports
The solution
No
Expected Strategic
Advantages
Make use of high GDP growth in Africa
Rise of the middle class, thus increasing
demand
Benefit from Massmarts developed network
Africa
the deal to
be re-examined
Re-hire workers
13 million dollars fund
new jobs
Use their 51% stake to expand
Expanding may be slowed
346 stores in
RSA
down
Discussion
Why do you think Walmart is not present in
Austria?
What could they have done differently to
succeed in China or Germany?
Which CSR actions could Walmart take in
Africa in order to imbed itself in the
community?
Do you have personal experience with
International
Management
Managing Across Borders and Cultures Helen Deresky
Walmart
??
http://www.reuters.com/article/2012/03/09/us-massmart-walmart-idUSBRE8280KH20120309
http://www.forbes.com/sites/greatspeculations/2011/06/10/wal-mart-takes-on-africa-with-massmart/
http://www.bloomberg.com/news/2011-05-31/wal-mart-s-2-4-billion-bid-for-south-africa-massmart-approvedwith-terms.html
http://www.africastrictlybusiness.com/growing-middle-class
http://www.bloomberg.com/news/2013-04-15/wal-mart-brand-favored-in-massmart-s-africa-growth-drive.html
http://www.comptrib.co.za/assets/Uploads/Wal-Mart--Massmart-Transcripts/Wal-Mart-order-31.05.2011.pdf