WALMART IN EUROPE EXAM
QUESTIONS AND ANSWERS 100%
CORRECT.
How international is Wal-Mart? How many countries, stores, employees? -
ANSWERVery. 27 countries, 11,300 stores and 2.2 million employees
What growth strategies did Wal-Mart use? Organic growth or acquisition? -
ANSWERInternationally market entry through M&A
Domestically mainly organic
e-commerce/digital -> acquisition
How did Wal-Mart contribute a quarter of all US productivity in the late 90s? -
ANSWERPursued an aggressive diversification strategy, including membership only
formats (sam's club"
Smaller more convenient pharmacy/ grocery stores, and supercenters
Became the world's largest retailer in 1991
35% annual compound growth of both revenue and net profit.
EDLP guarantee (aggressive bargaining, efficient distribution)
Focus on large discount stores and low prices, unmatched efficiency, superior
information technology. This forced other retailers to follow suit. By making goods cheap
and available, Walmart has raised the standard of living of average americans"
Describe Aldi's business strategy. How big of a threat is Aldi to Walmart? - ANSWER40
year old retail chain owned by Europe's wealthiest family
Privately held (no stock market pressure)
Employs a limited number of cashiers and stockroom workers
Spends little on store presentation and upkeep
Cashiers were paid based on the number of items they checked out
Stores accepted cash only
3,100 stores vs. Walmart's 94 stores
Aldi Owner also owned US retailer Trader Joe's
Germans trust them. Dedicated customer base, and can extract low prices from
suppliers
How restrictive were zoning laws in Germany for Walmart's expansion? -
ANSWER"Blaues Wunder"- shock of its life
German retail market was unique- "the Frank Sinatra Principle: If you can make it
there(Germany) you can make it anywhere..."
German retail landscape is "virtually littered with the carcasses of foreign retailers trying
to conquer the country"
QUESTIONS AND ANSWERS 100%
CORRECT.
How international is Wal-Mart? How many countries, stores, employees? -
ANSWERVery. 27 countries, 11,300 stores and 2.2 million employees
What growth strategies did Wal-Mart use? Organic growth or acquisition? -
ANSWERInternationally market entry through M&A
Domestically mainly organic
e-commerce/digital -> acquisition
How did Wal-Mart contribute a quarter of all US productivity in the late 90s? -
ANSWERPursued an aggressive diversification strategy, including membership only
formats (sam's club"
Smaller more convenient pharmacy/ grocery stores, and supercenters
Became the world's largest retailer in 1991
35% annual compound growth of both revenue and net profit.
EDLP guarantee (aggressive bargaining, efficient distribution)
Focus on large discount stores and low prices, unmatched efficiency, superior
information technology. This forced other retailers to follow suit. By making goods cheap
and available, Walmart has raised the standard of living of average americans"
Describe Aldi's business strategy. How big of a threat is Aldi to Walmart? - ANSWER40
year old retail chain owned by Europe's wealthiest family
Privately held (no stock market pressure)
Employs a limited number of cashiers and stockroom workers
Spends little on store presentation and upkeep
Cashiers were paid based on the number of items they checked out
Stores accepted cash only
3,100 stores vs. Walmart's 94 stores
Aldi Owner also owned US retailer Trader Joe's
Germans trust them. Dedicated customer base, and can extract low prices from
suppliers
How restrictive were zoning laws in Germany for Walmart's expansion? -
ANSWER"Blaues Wunder"- shock of its life
German retail market was unique- "the Frank Sinatra Principle: If you can make it
there(Germany) you can make it anywhere..."
German retail landscape is "virtually littered with the carcasses of foreign retailers trying
to conquer the country"
