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Companies Usually Go Overseas When They Run Out Of Room To Grow In Their Own Market.

Companies Usually Go Overseas When They Run Out Of Room To Grow In Their Own Market.

Question 1:
Companies usually go overseas when they run out of room to grow in their own market. So imagine someone like Wal-Mart who believes “we’re the best company in the toughest retail market in the world.” I have a great quote from [former Wal-Mart CEO] Lee Scott who suggests, “Look, if we can move from Arkansas to Alabama, how different can Argentina be?” They used to really think that. This is the oldest mistake highlighted by international businessmen. With all the hype around the “flat world,” it seems that people need periodic reminding that you need to think hard about what the differences are. Pankaj Ghemawat

What would the marketing environment differences be for Wal-Mart to move into the Argentinian market? Identify two macro-environmental differences and two local market differences.

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