Essay about Case study unit 3 LD

Submitted By ldebernardi
Words: 1008
Pages: 5

I believe Walmart’s global strategy will prove to be an effective one over time. In the case of South Africa Walmart has chosen to maintain the strategy of the business it is merging with buy buying 51% of the company. It will focus on generating growth through the current strategy in place set by Massmart. I believe this is a wise decision as it will allow Walmart to acclimate itself in a foreign environment that places much emphasis on the cultural notion of Ubuntu and all of the mores that this concept entails by simply maintain the policies which accommodate for the values that Ubuntu employs. (Black Mendenhall) This will be essential in that it will allow Walmart to ingratiate itself socially in a market where one of its competitors has successfully complained to the authorities concerning Walmart’s emergence into the marketplace by compelling the authorities to force Walmart to fork up some money to donate to other businesses success in the region. By demonstrating that it will respect the notion of Ubuntu it is also giving itself time to learn the parameters of Ubuntu and what adjustments can and can’t be made to the strategy currently being employed when the time comes in order to maximize efficiency without creating cultural friction as a result.
With regard to the economy of South Africa and how it may affect Walmart’s success consumers are currently inclined to purchase discount goods so the market is ripe for the marketing fashion Walmart traditionally has employed elsewhere.
The mistakes made in Germany resulted from a lack of necessary circumstances that would allow for Walmart to prosper. In South Africa however the market share of the business it is buying into is a large enough outlet to allow for large scale acquisition of products to be sold in the marketplace. The critical difference between the failure in Germany and the potential for success in South Africa is the scope of the outlet for products being sufficient enough to create the opportunity to buy its products to be sold on a large enough scale to reduce the price of its products low enough to drown out competitors and gain more and more market share. In other words the size of the stores will allow for an adequate intensity of competitiveness for Walmart to succeed as it has in other nations in which it gained market share tenfold.
As for any potential future problems with regard to the reaction to its success and the inevitable vast grasp of market share that Walmart’s success always entails on the part of Cosatu the grievances laid forth by Cosatu will be greatly mitigated in effect the longer Walmart maintains the current strategy of Massmart which aligns with Ubuntu. This cultural conformity or demonstration for respect for the traditions of the South African people will appeal to the citizenry of South Africa who ultimately influence the governing bodies as South Africa is a parliamentary democracy essentially run by the people. The efforts of Cosatu to hinder Walmart’s presence or scope will be undermined by Walmart’s endearing itself to those who hold power over the regulators.
As for the requirement of Walmart to dole out a considerable amount of capital to help other businesses develop in the region a key tactic would be to give the money to specific businesses that do not sell the same products as Massmart and any future products that Walmart may plan on selling in South Africa. There is no sense in aiding one’s competitor unless the objective is to shoot oneself in one’s foot.
As for the point in which Walmart does decide to buy out Massmart and implement any changes it has in mind to increase growth even more this should only be done when there is certain there will be no ramifications pushed for by Cosatu through the Competition Commission. An sufficient period of time for Walmart to gain the…