Wal-Mart Company has aggressively entered into the international market by opening up new stores in many countries of the world. In the current situation, this company has more than 8,500 departmental and warehouse stores in 15 countries. The main area of concern is how this company has been able to succeed in foreign countries. This has been contributed to by the international business strategy that is adopted by this company. In order to compete stiffly with other companies producing similar products in other countries, Wal-Mart has adopted productive business strategy where in each country its stores have a different name and hence products produced are of different quality according to the preferences of customers of that particular country.
It has been put forward by Joan (2002) that, international business is very competitive and hence only those countries that have good business strategies are able to compete stiffly and make profits. Wal-Mart operates under its name in the United States of America but under different names in other countries of the world. This indicates that Wal-Mart strategic choices are different in each and every country it operates in order to compete with its competitors. For instance when this company entered into Korean market in the year 1998 and therefore started offering high quality products to the Koreans in order to compete with Korean companies. The major customers of this company in China were the Chinese citizens and hence on realizing that Chinese customers preferred choosing their own live fish and other seafood, Wal-Mart stores in this country started to display uncovered meat and installed fish tanks so that Chinese may sea and chose their favorites. This shows that multinational approach is helpful as it determine how customers of different countries will be treated. This is so because the way Wal-Mart Company operates in China is different from the Korean one because customers are different and hence should not be generalized with a global approach. This aspect, as indicated by Wal-Mart Corporate (2011), increased the company’s sales drastically.
The concept of multinational approach that is used by Wal-Mart Company in different countries involves, as indicated by Hitt et al (2009), locating the company autonomously in separate countries as people are very different in different countries. In this case, each people are served according to their tastes and preferences but not according to the international approach. This approach is very advantageous as it helps in ensuring that even the most local people are reached and served. Under this business strategy, Wal-Mart Company is able to respond to national operational, market requirements, flexibilities, and product qualities in order to satisfy customers of different countries differently. This approach has assisted Wal-Mart Company to get a lot of profits especially bearing in mind that governments of different countries are different. On this basis, customers from different countries are served differently according to their likes. This approach requires a lot of marketing research in order to make sure that cultural factors of citizens of a country are thoroughly researched. According to Joan (2002), multinational approach has helped Wal-Mart to enter successfully into the global market as it does not use business strategy used in the United States of America.
In conclusion, Wal-Mart Company has been able to successfully enter into the global market because of the use of multinational business strategy. This strategy involves that customers of different countries are treated differently and hence productivity and profitability are high.