Germany Germany was Walmart's first European entry. They started in December 1997 by acquiring Wertkauf stores with 21 locations in the southern area of the country. Within months, Walmart acquired Interspar with over 70 stores in the northern region. They believed, as do many American companies, that expansion into Europe by way of Germany makes sense due to similarities in culture, language, and legal environment. Executives assumed that acquiring the two German retailers and then changing them to the Walmart name was a solid entry strategy, but they quickly learned of the operational differences between the two chains and that their locations and appearance were far below the average American standard. Other problems were related to Walmart's lack of Germans in management roles. The company never disclosed the full amounts of its operating losses in Germany. Analysts estimate annual losses at $200 to 300 million per year during Walmart's time in the country.

Germany Germany was Walmart's first European entry. They started in December 1997 by acquiring Wertkauf stores with 21 locations in the southern area of the country. Within months, Walmart acquired Interspar with over 70 stores in the northern region. They believed, as do many American companies, that expansion into Europe by way of Germany makes sense due to similarities in culture, language, and legal environment. Executives assumed that acquiring the two German retailers and then changing them to the Walmart name was a solid entry strategy, but they quickly learned of the operational differences between the two chains and that their locations and appearance were far below the average American standard. Other problems were related to Walmart's lack of Germans in management roles. The company never disclosed the full amounts of its operating losses in Germany. Analysts estimate annual losses at $200 to 300 million per year during Walmart's time in the country.

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter9: Reaching Global Markets

Section: Chapter Questions

Problem 10DRQ

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