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Managerial Econ- Walmant
Walmart opened its first store in 1962 and saw great success, reaching $1 billion in sales by 1980 and $100 billion by 1997 when it opened its first store in Germany. However, the German store only survived 5 years, accruing $100 million in losses. Walmart's failure in Germany was due to a lack of market research and understanding of EU regulations and German consumer interests, as well as an international strategy focused on monopolization and predatory pricing that backfired in the regulated German market.
Managerial Econ- Walmant
- 2. Walmart Known for itsdiscounts- “Price Wars” Open 1962 by Sam Walton 1980- 1 Billion in sales 1997- 100 Billion & opened it’s 1st store in Germany Survived only 5 year- acquiring 100 millions in losses
- 3. What went wrong? Lackof empirical lead to: EU regulations did not let Walmart monopolize the market. Failure to comply with EU regulations Lack of consumers identity and interests No international strategies= not relevant business strategy
- 4. Managerial Perspective Underestimated Demand LowMarket Share Price Elasticity Monopolization Predatory Pricing Conclusion- couldn’t keep up with other companies because they were not financially stable enough to offer discounts and suffered great profits losses