1) Walmart has already shown the ability to translate its merchandising strategies to other countries successfully. Mexico is a perfect example. This, however, takes time to do. They learned that in order to succeed initially they need to make adjustments to their merchandising strategies to fit the culture of the country they are in. Once they have done so, they can educate consumers about the benefits of the American merchandising culture. Some countries will not be willing to change their culture. But if Walmart continues to approach change the way they have they will continue to find success in countries willing to open up to change.
2) Walmart was successful in Mexico because it adapted to the Mexican culture and over time introduced them to the benefits of the American culture. When they first opened and tried to operate the American way without understanding the Mexican culture they quickly realized that when international businesses are ill-informed about the practices of another culture they are likely to fail. (1) They had to play by the Mexican rules if they wanted to succeed. International businesses need to consider employing local citizens to help them do business in a particular culture. (2) They hired managers who were familiar with the Mexican culture and allowed them to control the merchandising. This was extremely beneficial to their success. They learned that smaller stores within walking distance and changing the things they offered that best suited Mexican consumers would increase their chances of success. Educating Mexican consumers on the benefits of the American culture gave them even more gain. Mexican consumers gradually learned that our culture had beneficial aspects to it and therefore started changing the way the shopped making Walmart the largest retailer in Mexico.
3) Not all cultures will adapt to change. I feel the biggest reason they failed is because it appears that Germany and South Korea show Ethnocentrism behavior. Even with Walmart’s attempt at cross culture literacy both Germany and South Korea displayed a disregard or contempt for the culture of another country. (3) Consumer preference for higher quality items was a part of their culture that Walmart was unable to persuade them from. In some countries deep cultural difference will often remain. (4) This was evident in Germany and South Korea. Mexico was more open to the idea of Walmart’s discount strategy. They learned over time the benefits of the American merchandising culture and how it could work along with their own culture.
4) Walmart needs to continue to cater to the Chinese culture. If they want to do business in China, they need to play by the Chinese rules. They have seen a large increase in sales since customizing their stores to fit the Chinese way of life. By allowing unions for Chinese employees Walmart has upped its success and needs to continue to do so. Chinese merchandising culture is similar to that of the American merchandising culture. This gives Walmart a big advantage. They are on the right track. As long as they continue to keep prices low and having a wide selection to choose from that is consistent with the Chinese culture Walmart will be successful in China.
5) Walmart can only change the culture of the nation where it’s doing business to the extent that the country is willing to allow. Cross cultural literacy is the most important factor when trying to promote change within another country. Each country has their own value system and norms. Some of these cannot be persuaded. South Korea being an example of this.