According to Corporate Wal-Mart’s webpage, (www.corporate-walmart.com), “since their humble beginning as a small discount retailer in Rogers, Arkansas, Wal-Mart has opened thousands of stores in the United States and expanded internationally” (See Exhibit 4 and 7). When trying an international market and expanding globally, Wal-Mart utilized the appropriate strategies to minimize the risk of failure.
Many models of internalization go further into detail by explaining the sequence of foreign expansion, demonstrating that approaching a global market with the right tools and strategies, will make them perform better in foreign markets that are very similar to their domestic markets, explaining why Wal-Mart chose to enter the markets of Canada…show more content… Wal-Mart also implemented Radio Frequency Identification Technology (RFID) in 20 stores and about 12 of their suppliers. The parent country, United States, first practiced this technology to eliminate out-of-stock inventory. Wal-Marts in Canada focused on this to improve its supply chain and customer services. This was an important achievement by Wal-Marts in Canada as it reduced errors in manual restocking methods, over stocking in the stores, unnecessary transportation and ultimately the emissions of carbons (Mammarella, 2007). Its success was also shown through a large grocery insert in its Canadian discount stores called “Grocery Shelf” that provided a big return on capital at low risk (Orgel, 2005). Additionally, in Canada, the company ensured the quality of products they offer in the new stores (Canada, 2011). Wal-Mart’s low price strategy had given it a great opportunity compared to other retailers in Canada, and ensured that its path in Canada was stable (Swain, 1994). Another opportunity for the retailer in Canada was its decision to bring the Sam’s Clubs into the market; this helped to increase its