Today in the Wall Street Journal there was an interesting article written about Wal-Mart and their expansion across the globe. The article was titled "After Early Errors, Wal-Mart Thinks Locally to act Globally" and the piece was written by Miguel Bustillo. Wal-Mart, as we know it, is the massive corporation that has made headlines in the past for their remarkable deals, local business take overs, and a sometimes spotty record of poor treatment of employees. However, this well written article by Mr. Bustillo explains Wal-Mart's push to establish themselves in international markets while upholding the cultural practices in foreign countries. Wal-Mart has learned that crashing into new markets and disrupting the flow of commerce that has already been established is not proven to work. Even with the global name of Wal-Mart, the Company is taking a new approach to their foreign constituents. As Mr. Busitllo reports, Wal-Mart has been looking for new formats in which they can deliver their goods and services to these countries. These new formats implemented by Wal-Mart is a look and feel that is closer to the individual culture in which they are immersed in. Wal-Mart has acquired many small discount markets but kept the names of these store fronts in efforts to blend in with the cultural surroundings. This has proved to be a difficult task for Wal-Mart as many of the established market places in these countries have the upper hand with strong ties with the local suppliers. Other ways in which Wal-Mart is finding success is through what Mr. Bustillo calls "cross pollination." This "cross pollination" is explained as Wal-Mart lending ideas that have worked in other markets across the world in order to grow business. In India, Wal-Mart and its local affiliates studied a formula that had success in Brazil and simply incorporated into their business. This tactic has been paying off for Wal-Mart. By realizing that some of their best ideas are sprouting in other countries, Wal-Mart is capitalizing on their growth. These methods are even beginning to migrate back into the United States. Wal-Mart supermarkets are now turning into Supermercado de Wal-mart in which is capitalizing on the increasing Latino market. It seems Wal-Mart is taking a global approach and applying it locally. A breath of fresh air has swept through the headquarters at Bentonville, Arkansas. As Wal-Mart is making its way around the world they are also dropping off pieces of social responsibility along the way. In Sao Paulo, Brazil Wal-Mart is adding community centers which include internet cafes and even micro-lending services. Free computer classes are also offered to lower income children of the local area. The bad press that has engulfed Wal-Mart in the past may appear to be turning. Wal-Mart is establishing themselves around the world. While the giant blue sign with white bold lettering may not be there, Wal-Mart is again recapturing the world's attention.
To Read the Full Article written by Miguel Bustillo pick up today's (August 14, 2009) copy of the Wall Street Journal, or visit www.wsj.com
Source:
Bustillo, Miguel. "After Early Errors, Wal-Mart Thinks Locally to act Globally." The Wall Street Journal 14 Aug. 2009: A1
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