Essay on wal-mart south korean

Submitted By yigitpala
Words: 417
Pages: 2

‘’Why is it a challenge to open a business overseas? ‘’. There are many factors which should be taken into consideration when looking into opening up a business, especially when there are foreign elements involved. First of all, the companies must observe the culture of the area in which they want to open a business. The first problem in Wal-Mart’s attempt to occupy South Korea was location. Most Wal-Mart outlets in South Korea were placed outside instead of inside the cities, and most people willing to buy foreign products would, obviously be in big cities because they are typically less traditional and more “westernized”. The South Korean culture is very tied into the markets, and South Korean consumers expect to see local products presented in a localized fashion. Many housewives did not want to buy foreign foods and beverages, and since they are doing most of the shopping for the typically Korean household, not customizing the stores to their liking was a huge mistake. Also, one of Wal-Mart’s leading sell-points to consumers (especially in America) are its discount prices. This is a concept the South Koreans didn’t understand. Although Wal-Mart prides themselves on their efficiency and savings in North America, this concept failed to impress South Korean shoppers. South Koreans do not distinguish between discounts and normal prices, especially since they are use to their outdoor air markets, which are already at what westerners would consider “discount” prices, with the added bonus that the products they are purchasing are fresh. Also, if Wal-Mart had done more research prior to setting up…