Wal-Mart is a company that was founded in the year 1962 by Sam Walton and has its headquarters in Bentonville, Arkansas in the United States of America. This is an American multinational corporation that operates many large discount warehouse and department stores. This company was in the year 2010 ranked as the global largest public corporation in terms of revenues. This is the largest grocery seller in the whole of America and in the year 2009 it generated about $258 billion sales of which 51% were from the sale of grocery in the United States of America. This company has around 8,500 stores in 15 countries.
As indicated by Wal-Mart Corporate (2011), this company runs retail stores in different formats in the whole world and it is committed to save people’s money by selling their products at lower prices. This company operates on the philosophy of operating globally and giving back locally. This company’s operations are organized into three varied divisions which include; Sam’s Club, Wal-Mart International, and Wal-Mart Stores in the United States of America. According to Wollam (2009), Wal-Mart International operations are comprised 4,263 stores and 660,000 employees outside the United States of America where these stores are wholly owned in countries like Canada, United Kingdom, Argentina, Mexico, and Brazil.
Wal-Mart, as put forward by Hitt et al (2009), has entered into the international market as a result of competitive advantage and the aspect of globalization. In this case, the aspect of globalization has allowed this company to form alliances with other companies. For instance, this company was able to enter into Brazil through a partnership with a Brazilian company called Grupo Garantia where Wal-Mart represented 60% of the partnership while the Grupo Garantia controlled Lojas Americanas remained with 40%. Wal-Mart usually opens up stores in all countries where it enters as a market entry strategy. This entry mode is preferred over the other modes because through forming alliances a company is able to share resources and hence not many costs are incurred especially through marketing and distribution. As indicated by Hitt et al (2009), strategic alliances are very essential especially when a company does not have enough resources. This is because resources are shared between countries and hence the process of marketing and distribution is made easy and cheap. In Brazil, Wal-Mart was able to market its products cheaply since Lojas Americanas was already known in this country.
Wal-Mart has a very productive international human resource management and hence it is able to monitor and control all its employees in countries other than the United States of America. The success of Wal-Mart Company, as indicated by Wal-Mart Corporate (2011), is usually brought about by the aspect of motivating and satisfying the international employees in order to work hard in the pursuit of achieving organizational goals and objectives. Wal-Mart has developed a culture and control systems that help in creating incentives for associates and managers in order to improve their performance and give the best for the company. This company operates departmental and warehouse stores in different countries under different names. Additionally, this company fosters a culture that rewards and embraces diversity, integrity, and mutual respect (Wollam 2009).
In conclusion, Wal-Mart is a company that is operated internationally as it has stores and supermarkets in the whole world. Strategic alliances have been the entry mode used by this company in entering into overseas countries especially in Brazil and Mexico.