The example is given in bullets below please dont use this:
Please dont write in bullets. I need in paragraph’s
600-700 words please
In short, here is a brief example of a market entry failure (please note that not all components required for the
assignment are discussed here as it is only a brief example of issues): Walmart entered Germany in 1997
Walmart exited Germany and its attractive grocery/retail market after only 9 years in business.
Issues:
Ethnocentric View (lack of adjustment to local culture)
Labor relations (pro-labor union culture in Germany): Legal/Political Environment
Shopping culture (Germans prefer to shop in smaller stores, no bulk purchases
Environmental Issues (Germans are too “green” and oppose the plastic culture)
Ethics (different perceptions of what is considered ethical; such as spying on employees)
Differences in corporate culture (German employees and customers did not buy into the US
corporate culture – smiling )
Lack of economies of scale/ High competitive environment in Germany grocery market
Strategy was not transferrable: Low-cost leader with huge supplier network (shop local is more
important in Germany than the US)
Price sensitivity (consumers are already used to local chains with cheap prices but higher quality):
Economic Environment
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IndividualWritingAssignment_20221.docx