INTERNATIONAL MARKETING

International Marketing

Table of Contents

Introduction2

Company Profile2

Rationale for Internationalization3

Assessing the Target Markets3

1.Algeria3

2.Kazakhstan4

3.Pakistan4

Chosen Target Market5

Country Analysis5

Competitor Analysis6

Positioning7

Conclusion8

References9

International Marketing

Introduction

Company Profile

Wal-Mart is an International Retail store which started out in 1962 in USA as small retail store. Over the years, it expanded its business to various countries of the world. From a small retail outlet it now runs various chains of discount stores, supercenters, and wholesale stores (Cruz et al, 2008, 6). It now operates in 27 different countries around the globe (Walmart, 2012). It is currently the market leader in the hypermarkets and super centers around the world (Data Monitor, 2011, 2). It offers its consumers products at everyday low prices (Company Profile Wal-Mart, 2011, 4). Wal-Mart currently looks further to expand their business to explore new International Markets.

Rationale for Internationalization

The retail sector around the globe is experiencing rapid advancement due to increase investment in the developing countries (A.T Kearney, 2007, 1). The main reason for entering foreign markets is to enhance the company's growth and profitability, by introducing new products according to the needs of the local customer and increasing the customer base. Another key factor that motivates the company to enter foreign markets is to create employment opportunity in the developing countries. Also, the retail sector in the countries where Wal-Mart is currently operating, is getting highly saturated, and there can be no further growth. Hence, to keep growing and expanding they need to move to other countries with potential for growth and prosperity. Thus, fulfilling the Wal-Mart's aim of becoming a global company.

Assessing the Target Markets

There are several factors that can be evaluated in order to find out the markets that offer the best opportunities. Several factors affect the attractiveness of a retail market like economic development, social conditions and cultural assumptions (Alexander and Doherty, 2009, 32). Currently we have identified three potential countries where they will be starting their operations. For this purpose, each country is evaluated on the basis of their potential growth in the retail business. The three countries are Algeria, Kazakhstan and Pakistan.

Algeria

Algeria has a lot of growth potential for Wal-Mart. The retail industry has seen growth in recent years and will continue witnessing growth in the coming years (Planet Retail, 2012, 4). This is mainly because of the youthful population and the increase in income. Wal-Mart can also grow in this market because of the fact that there are only few competitors present in the region. Though Algeria has got the potential for growth, but till now it has fallen short of its target growth. Mainly, because of the government intervention and regulations that has hampered the private sector (Planet Retail, 2012, 3).

Kazakhstan

Kazakhstan is the most developed economy among all the central Asian states due to the presence of vast natural resources and political stability (Das, Kumar & Saha, 2010, 660). It is one of the major attractions for the retail industry. It is a developing country and has an under-developed retail sector which provides foreign retailers with an opportunity to get ...