Case

Walmart (USA, Germany)

In 2006 Walmart sold its 85 German stores to Metro with a loss of about USD 1 billion; an example of poorly adapted market entry.

Industry
Retail
Frameworks applied
Foreign market entry modesTriple liability of young international firms
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Frameworks applied

This case is read through the frameworks below.

  • Foreign market entry modesWhen a business owner is about to take a product abroad, should they export, license, form a joint venture or invest directly to balance control, commitment and risk?
  • Triple liability of young international firmsWhen a founder of a small, recently started firm wants to sell abroad early, which liabilities of newness, smallness and foreignness should they expect, and how can they overcome them?

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. The New York Times (2006) Wal-Mart decides to pull out of Germany (28 July).No DOInytimes.comSource page
  2. Yoder, S., Visich, J.K. and Rustambekov, E. (2016) ‘Lessons learned from international expansion failures and successes’, Business Horizons, 59, pp. 233–243.doi:10.1016/j.bushor.2015.11.008Source page