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International Marketing

International Marketing

International Marketing

The example is given in bullets below please dont use this:

Please dont write in bullets. I need in paragraph’s

600-700 words please

In short, here is a brief example of a market entry failure (please note that not all components required for the
assignment are discussed here as it is only a brief example of issues):  Walmart entered Germany in 1997
Walmart exited Germany and its attractive grocery/retail market after only 9 years in business.
 Issues:
 Ethnocentric View (lack of adjustment to local culture)
 Labor relations (pro-labor union culture in Germany): Legal/Political Environment
 Shopping culture (Germans prefer to shop in smaller stores, no bulk purchases
 Environmental Issues (Germans are too “green” and oppose the plastic culture)
 Ethics (different perceptions of what is considered ethical; such as spying on employees)
 Differences in corporate culture (German employees and customers did not buy into the US
corporate culture – smiling )
Lack of economies of scale/ High competitive environment in Germany grocery market
 Strategy was not transferrable: Low-cost leader with huge supplier network (shop local is more
important in Germany than the US)
 Price sensitivity (consumers are already used to local chains with cheap prices but higher quality):
Economic Environment

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