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International expansion has become most important for all types of business and gained a lot of attention. While considering for global expansion, various factors shall be diagnosed in order to make expansion decision viz. entry modes, threats and opportunities in the proposed market and appropriate business strategies to mitigate the risk of failure in such global markets.
Established in 1962 by Sam Walton, Wal-Mart has become the world’s largest retailer chain today. It is a multinational retail company having its base in US and sells groceries and other general merchandise. It is basically a family business with almost 10,130 stores having more than $400 billion revenue (Walmart, 2013). Wal-Mart serves about 100 million customers in US every week and due to highly saturated domestic market and such rapid expansion, Wal-Mart faces expansion limits in US’s home market requiring considering international expansion opportunities. Wal-Mart is well known for its low pricing strategies and thus can attract customers in emerging economic markets. Internationalization of business opens new networks into new as well as existing countries and cities with an increase in the new customers’ base and hence sales (Wal-Mart de Mexico, 2008). Consumers today don’t prefer traditional markets and posses changing preferences on buying groceries and daily merchandise. They now mostly prefer supermarket chains, standard hypermarkets and stores offering attractive and lower prices with appropriate convenience. This revolutionary change in consumers’ preferences has created expansion opportunities for Wal-Mart enabling it to open its stores into more cities.
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