Wal Marts Failure in Korea - 1166 Words

Wal-Mart’s Failure in Korea This case will present Wal-Mart’s unexpected failure to conduct local market research and conform to Korean consumers’ needs and wants. Introduction: There are many frameworks that help characterize the differences between different cultures and the way people communicate across different cultures. In our paper we will focus on the differences between Korean and American cultures and what effect these differences might have on conducting business between both sides. We will concentrate on a failure business case of Wal-Mart entry and withdrawl for the Korean market to explore these differences. Literature Review: Cultural orientations can be view as lying on a continuum with high – context cultures on one†¦show more content†¦(Gandolfi amp; Ã…  trach, 2009). Wal-Mart had a very sophisticated IT infrastructure in place to help integrated its suppliers into its supply chain. This IT system was a source of competitive advantage for Wal-Mart in the US allowing it to be a top notch negotiator and lower prices from vendors (Kim R. B., 2008). In Korea, however, Wal-Mart met with resistance from its distributors regarding integration into the IT system and ultimately did not create a nation-wide distribution network. (Kim R. B., 2008) The managerial style of Wal-Marts executives, especially their direct demands for lowering prices while negotiating and having distributors pay to have their wares displayed in good shelf space were direct causes for the soured relations between Wal-Mart and its vendors in Korea (Chang, 2008). Wal-Mart strategy in the US was to have price dominance. In Korea, not only could they not achieve consistent price dominance due to soured vendor relations, price dominance is not a very good strategy. Koreans cared more about service and convenience and the warehouse look did not convey saving to them. (Gandolfi amp; Ã…  trach, 2009) Method: Findings: Analysis: Recommendations: References: Works Cited Chang, D. R. (2008). The case of Wal-Mart and E Mart in the Korean discount retailing industry. In J. I. Ki, Corporate Competitive Strategy inShow MoreRelatedEssay Case Study #1: Wal-Mart’s Foreign Expansion1027 Words   |  5 PagesCase Study #1: Wal-Mart’s Foreign Expansion 1. Do you think Wal-Mart could translate its merchandising strategy wholesale to another country and succeed? If not, why not? I don’t think Wal-Mart could translate its merchandising strategy wholesale directly to another country and succeed. Because different countries have different cultures and backgrounds, in order to succeed in another country, it needs to adapt to these differences and find a way that best fits in the local market. ApparentlyRead MoreCh 13 Organization of International Business Essay882 Words   |  4 Pages1. 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In researching Wal-Mart and analyzing this case it has opened the window to the ability of a small town business man of Bentonville, Arkansas. This man is the legendary Sam Walton. Who, in 1962, created his â€Å"Wal-Mart Discount