In 2005, Wal-Mart, the largest retail chain in the world was also the world's largest company with a turnover of $285.2 billion. Wal-Mart's globalization had started in 1991, when it opened a SAM'S Club near Mexico City. In 1993, Wal-Mart International was set up to oversee the growing opportunities for the company worldwide.
When Wal-Mart enters a foreign country, it makes necessary modifications such as merchandise offerings. However, Wal-Mart did not change three main ingredients: Brand names (Wal-Mart and Sam's Club), everyday low price strategy (EDLP), and high ethical standards.
By using only the two names described above, Wal-Mart 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.
CITE THIS AS:
YouSigma. (2007). "Wal-Mart Marketing Strategy." From http://www.yousigma.com.