WritDiscuss a lesson that can be learned by leadership on attempting to expand into another’s choice

Leaders often look for new opportunities for expanding the operations of their organizations beyond the borders of the country of origin. Research and discuss two articles that detail difficulties experienced by Walmart in attempting to expand operations into another country. Discuss a lesson that can be learned by leadership on attempting to expand into another country.

Reading material links:
https://www.proquest.com/docview/398989638?accountid=32521

https://www.forbes.com/sites/walterloeb/2013/10/16/walmart-what-happened-in-india/?sh=51febc517d1c

ANSWER

International Expansion

Walmart’s failures in India and expansion into other countries have lessons that leaders can learn from, especially in charting international markets. According to the article by Loeb (2013), after the split of the partnership between Walmart and Bharti in India, Walmart will have a hard time complying with the laws of the Indian government on retail stores. According to the Indian government, retail stores need to source 30% from small suppliers, which will be difficult for Walmart to accomplish. Leaders that are planning to expand their businesses should learn from Walmart. One of the most important things they should do before expanding is to understand the laws and policies of the country. Understanding the market culture and weighing the advantages against the disadvantages is essential before deciding to go international. If Walmart had prepared itself before partnering with Bharti, it would have been prepared in case of a split and had contingencies.

It is important for leaders to understand the market culture of their target market. According to Bellman (2007), while in the U.S., the dollar stores target low-income communities, in Mumbai, dollar stores are paced in middle-class communities. Such an understanding of the market is an important piece of knowledge for a retail store such as Walmart to have learned. While the company is successful in the U.S., failure to understand its new market and to try to change things to ensure they are in line with what the company already knows can only lead to failure. Leaders should be ready to adjust to the market trends and learn that their target market might change depending on the market they have entered. For example, in India, instead of targeting the low-income communities, they are targeting the middle class.

References

Bellman, E. (2007). A Dollar Store’s Rich Allure in India a U.S. Franchise’s Success Shows ‘Made in America’ Sells; Lessons for Wal-Mart’s Entry? https://www.wsj.com/articles/SB116950107935584105

Loeb, W. (2013). Walmart: What Happened in India? https://www.forbes.com/sites/walterloeb/2013/10/16/walmart-what-happened-in-india/?sh=55f06c457d1c