Theglobalization of stores has attained progress, but notwithout meeting challenges in some countries. This indicates that the stores have been successful in some parts, while it has beenless successful or failed in some other parts. The aim of this paperis to discuss the success of the stores in England, Mexico,China, and Germany.
InEngland, has been in a position to attain much success. Thesuccess of the stores can be indicated by the acquisition of the232-unit ASDA chain (www.xl-enterprises.com).The ASDA had started modeling itself and came to level theintegration. It is reported that after the acquisition of ASDA,sales increased from $16.8 billion to $21.7 billion from 1999 to2003. The success of in England can be attributed to theacquisition of a strong business ASDA already had a strongestablishment in England. Therefore, due to this acquisition, the stores have been capable of establishing a very successfulpresence in England. Besides, the expansion of stores inMexico has also been very successful. The success of storesin Mexico can be attributed to the creation of a partnership amidCifra in Mexico and (www.xl-enterprises.com).Furthermore, its success in Mexico can be attributed to its strategyof price cuts. de Mexico emerges as one of the largestretailer in Mexico, which emphasizes on the level of success that thestore has attained in Mexico.
Althoughit has operations in China, is still fighting to besuccessful in China and believes it will achieve the success soon.Since 1996, has been aggressive in opening its stores inChina (www.forbes.com).Currently, has approximately 398 units in China. Muchsuccess in China has been hindered by the stiff competition ofhypermarkets and supermarkets. Indeed, the Chinese market hasattracted hypermarkets and supermarkets, which command above 80% ofthe market. Thus, has not been less successful in China dueto stiff competition from players such as Carrefour, Beijing HoalianGroup, and Tesco among others (www.forbes.com).Reports have also indicated that has not been in a positionto achieve much success in China because of the Merchandise it sells.The merchandise it sells in China is cheap, but consumers want bettermerchandise. However, has plans of opening freshdistribution facilities in the region that would ensure consumers’demands are met. Therefore, in China, stores have not been aposition to attain much success, but it is seeking a growth strategyin order to attain much success.
has experienced its weakest business in Germany. For the 92 stores ithad set up in Germany, the company realized substantial loss. Thecompany has not been successful in Germany due to different factors.One of the factors entails the regulations in Germany, where it isnot allowed for any business to price commodities below cost(www.xl-enterprises.com).Another factor is the curtailing of weekend hours Sunday is usuallya dark day for retailing. Besides, another factor contributing to theunsuccessful presence of in Germany is the lack of strongacquisitions. The acquisitions that the company made were poor. Inaddition, the company has not been successful in Germany due toproblems associated with the implementation of the distributionsystem of the company.
Loeb,Walter. How Will Fight to be Successful in China,June 2013. Retrieved fromhttp://www.forbes.com/sites/walterloeb/2013/11/06/how-walmart-will-fight-to-be-successful-in-china/
Masters,Greg. ’sGlobal Challenge,May 2004. Internet Source. Retrieved fromhttp://www.xl-enterprises.com/RetailMerchandiser_WalMart.pdf