Lp6.2 Assignment Research Paper

Wal-Mart global strategy: Expansion into Nigeria a gateway to Sub-Saharan AfricaName:Institutional affiliationWal-Mart global strategy: Expansion into Nigeria a gateway to Sub-Saharan AfricaIntroductionWal-Mart is an American multinational company founded by Sam Walton in 1962 and ranks among the world’s largest companies by revenue. The company operates hypermarkets, discount department stores and grocery stores in over 6,100 outlets. Wal-Mart has achieved great success in the North American countries such as the United States, Canada and Mexico. However, the company has achieved mixed reception outside this region. The U.K., South Africa, Latin America, and China are among the successful regions, while the German, South Korean, Hong Kong and Indonesian markets have been unsuccessful. Wal-Mart biggest competitor is Amazon.com, the pioneer in online retailing. However, unlike Amazon, Wal-Mart’s inability to respond quickly to local demands is largely to blame for the mixed reception. Nigeria is an ideal potential market for Wal-Mart. The low price strategy would appeal to the ballooning size of middle class in Nigeria and the entire Sub-Saharan region. Wal-Mart entry strategy Wal-Mart needed to expand to foreign markets to sustain its low price strategy that was heavily