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Essay / Research Paper Abstract
Wall-Mart are a successful retail chain in the US and in other countries, such as the UK, with the acquisition of Asda. The company has invested $1.6 billion with the acquisition of the Wertkauf hypermarket chain and Interspar stores. This 9 page paper considers why the success seen in the UK as well as in the US has been elusive in Germany. Issues such culture clash, the different competitive environment and lack of real planning are all discussed. The bibliography cites 12 sources.
Page Count:
9 pages (~225 words per page)
File: TS14_TEwalmartg.rtf
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Unformatted sample text from the term paper:
purchase of the Asda chain in the UK. However, not all of the international acquisition have been as successful, as seen with the comp[nays operation in Germany. Germany is virtually
very different form the US, as such some of the problem may be argued as being cultural, misunderstanding the market and the need for a steep learning curve. The competitive
environment was also very different, with higher levels of competition, different service standards divergent laws, and a lack of cross cultural management skills, may all be seen as contributing
to the hardship of Wal-Mart in Germany, where there has not been a single profitable year since the entrance to that market in 1997. The problem may
be seen as originating with the entrance of Wal-Mart into Germany. There were already indicators of this market being one that would be difficult to break into, at the time
there were no non German operators of discount retail chains in the country (MMR, 2003). Today, Wal-Mart is the only major non domestic company (MMR, 2003). The main competitors are
Aldi, the market leader, Metro AG, Tengelmann, and Lidl & Schwarz (MMR, 2003). Of all the discount stores in Germany, 25% are operated by Aldi (MMR, 2003). Discounters as a
whole account for 30% pf the food retail market, however, the market is one that is declining, with 2002 seeing a 0.9% fall on 2001, falling to ?325.2 billion (Euromonitor,
2003). The discount market share was ?99 billion (Euromonitor, 2003). As such the market ay have been attractive at one point in 1996, when the market was growing, but
as conditions have changed the weaknesses of Wal-Mart have been emphasised in their inability to adapt to this market. Looking at areas where Wal-Mart has been successful, it has stuck
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