Background/Introduction of

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Background /Introduction of Wal-Mart Germany : A Failed Marketing Plan

The Wal-Mart , Inc . Story

Wal-Mart is not only the world 's most dominant player in the retail home market industry , it is also the world 's largest corporation in terms of revenue earning more than 240 billion in 2003 . It is also the biggest private-sector employer in the world today with around 1 .38 million staff on its payroll

The first Wal-Mart was set up in 1962 by brothers Sam and Bud Walton as a

five and dime store in Rogers , Arkansas . Forty years later , branches have mushroomed all over America . Today there are 1 ,647 Discount Stores 1 ,066 Supercenters , 500 SAM 's clubs and 31 Neighborhood Stores in operation across the country - all under the Wal-Mart corporate umbrella . Wal-Mart thrives on its everyday low prices (made possible by its sophisticated inventory management system and the biggest private satellite communication system in the world , emphasis on customer service , and highly-motivated personnel

With its huge and uncontested success in the homeland , Wal-Mart decided in 1991 to embark on an ambitious campaign to become an international retail store corporation . Its goal was to have its international operations contribute a third of its SAM 's club outfit , its first overseas branch , in Palenco , Mexico City Since then , Wal-Mart has opened branches in 9 countries and in 1993 , it opened the Wal-Mart International Division , to oversee the company 's international operations

So far , revenue returns has been spectacular . In 1979 , its annual turnover reached 1 billion for the first time . In 1993 , it earned a billion in only a week and in November , 2001 , in a record-breaking single day . In the year ending January 31 , 2003 , Wal-Mart posted sales of 244 .5 billion , with about 16 .5 earned abroad . Its 2003 turnover is three times higher than Carrefour 's , the world 's second biggest retailer

However , while Wal-Mart has become the market leader in the US , Mexico and Canada , the same didn 't hold true for its other overseas markets Its operations in Asia (which includes China , South Korea and Japan ) and Latin America (Brazil and Argentina ) are profitable but not as much as the North American profit rates . A notable case to consider , however , is Wal-Mart 's failure in the German market

The Wal-Mart Germany Fiasco

Germany is the third biggest retail market in the world after US and Japan . In December 1997 , Wal-Mart decided to expand into Germany - a move that was once considered as an initial foray to make its presence known throughout Europe . The company took over the chain of retail stores , Wertkauf , for about 1 .04 billion and Interspar hypermarkets for ?560 million . However , revenues have not mirrored those of North American postings . By 2002 , Wal-Mart Germany only earned an estimated ?2 .9 billion , a market share of 1 .1 . By 2003 , it has lost about ?1 billion , closed two outlets and laid-off around 1 ,000 staff

Wal-Mart 's German operations is said to have...