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Wal-Mart's Global Branding Strategies

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In 2004, 18.5 percent of its revenues derived from their foreign operation, and the trend shows that its foreign market dependence is steadily increasing (Wal-Mart 2004 Annual Report). In both domestic and international operations, it uses two names, Wal-Mart and Sam’s Club. This simplified naming and operation means its adoption of a standardization global strategy and its importance in global marketing strategies.  

When it enters a foreign country, it makes necessary such as merchandise offerings. However, it does not main ingredients, even in foreign markets. They are names - everyday low price strategy, and high ethical standards. 

By using only the two names described above (everyday low price strategy, and high ethical standards), it develops a global brand like IBM, Coke or Intel.  Wal-Mart means everyday low price and value. In all countries, a large group of consumers is concerned about value and merchandise variety. There is enough of this type of consumer to encourage Wal-Mart to expand its operation to the global market.

High ethical standards are very difficult to maintain in foreign countries where different standards exist. For instance, when Wal-Mart enters a certain country, it may be asked to provide a “political donation” as a condition of approval. If it refuses the donation, it will lose its market. If Wal-Mart refuses to make the donation, it will maintain its high ethical standards and clean image.

Companies can learn from these examples and try to effectively develop, enforce and promote a Global Brand for their product and services offerings. 

Cite this as:

YouSigma. (2008). "Wal-Mart's Global Branding Strategies." From http://www.yousigma.com.

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