Walmart Immi 141130114114 Conversion Gate02

8/15/2019 Walmart Immi 141130114114 Conversion Gate02

1/16

Case 7Walmart’s Expansion in Africa:

A New Exploration Strategy

The (M)inh-Thi, (A)lexanr!, (R)aphael, (K)atharina,

(S)il"e


2/16

#$er$iew%ntro!ction

The &rowth of Walmart

%nternational Expansion

The Secret of S!ccess

Why is Africa so attracti$e'

(assmart)s ac*!isition

&rowth strategy

Expecte strategic a$antage

Challenges

The +ear ..


3/16

The &rowth of Walmart/o!ne in .012y Sam Walton in 2renton$ille, Ar3ansas

Went p!4lic in .07%nternational expansion in the 0)sAnticyclical meas!res

2elie$e in re$en!e Toay)s sit!ation

original Walton5s /i$e an 6ime, now the Wal-(art

isitor5s Center


4/16

%nternational Expansion

(exico 8.00.9

Canaa 8.009

Argentina 8.00;92raorea an ?apan


5/16

The Secret of S!ccessC!stomer centric

approach

E6@

#Bering extene

ser$ices

Aaption to local c!lt!res Dmagic principles

Fespect the ini$i!al

Ser$ice for c!stomers

Stri$e for excellence


6/16

Why is Africa so

attracit$e'Emerging mar3et

Expecte growth of ; G

%mportant mar3et

Entering Africa ?oint ent!re with (assmart

=sing existing 3nowlege an

infrastr!ct!re


7/16

&rowth Strategies of(assmart in the African

Continent/o!ne in .00

Secon largest istri4!tor of cons!mer goos:

7 stores in . co!ntries in s!4-Saharan Africa

/oc!s on high $ol!me, low margin, low-cost

istri4!tion of 4rane cons!mer goos

Strategy: contin!al impro$ement of 4!siness moel

an in$estment


8/16

2!siness moel


9/16

A three-year loo3 aheaH/oc!s on:

@eaership

S!pply Chain

ri$ate 2rans

/inancial ser$ices

New format stores

S!staina4ility


10/16

Walmart’s Ac*!isition of (assmart The eal

%nitial oBer: I 4illion for a .G sta3e

/inal oBer: I, 4illion for a ;.G sta3e The pro4lem

(assmart lay-oB closely lin3eH to themerger

Walmart’s !se of its inJ!ence to 4oost imports The sol!tion

No staB ismissal for two years

Kono!ring the existing la4o!r agreements


11/16

Expecte StrategicA$antages

(a3e !se of high &6 growth in Africa

Fise of the mile class, th!s increasing

eman

2eneLt from (assmart’s e$elope networ3


12/16

Challenges Walmart will ha$e toface in the African continent

#ne-si


13/16

What happene to Walmart’soperations after ta3ing a ;.G share

in (assmart in ..'

. - So!th African go$ernment re*!este

the eal to 4e re-examine

Fe-hire wor3ers

. million ollars f!n


14/16

What happene to Walmart’soperations after ta3ing a ;.G share

in (assmart in ..'

(ain reason to eal create

new "o4s

=se their ;.G sta3e to expan

Expaning may 4e slowe

own346 stores in

RSA


15/16

6isc!ssionWhy o yo! thin3 Walmart is not present in

A!stria'

What co!l they ha$e one iBerently to

s!ccee in China or &ermany'Which CSF actions co!l Walmart ta3e in

Africa in orer to im4e itself in thecomm!nity'

6o yo! ha$e personal experience withWalmart ''%nternational (anagement (anaging Across 2orers an C!lt!resH Kelen 6eres3y

http:OOwwwPre!tersPcomOarticleO.OO0O!s-massmart-walmart-i=S2FEQQ>K.0http:OOwwwPfor4esPcomOsitesOgreatspec!lationsO..O1O.Owal-mart-ta3es-on-africa-with-massmartOhttp:OOwwwP4loom4ergPcomOnewsO..-;-.Owal-mart-s---4illion-4i-for-so!th-africa-massmart-appro$e-with-termsPhtmlhttp:OOwwwPafricastrictly4!sinessPcomOgrowing-mile-class

http:OOwwwP4loom4ergPcomOnewsO.--.;Owal-mart-4ran-fa$ore-in-massmart-s-africa-growth-ri$ePhtmlhttp:OOwwwPcomptri4PcoP


16/16

Than3 yo! for yo!rattentionR

Documents

Walmart Immi 141130114114 Conversion Gate02