The paper "Wal-Mart Organisation Business Strategies" is a great example of a business assignment. The Wal-Mart organization targeted the Latin American region as among its first investment avenues. In its expansion in Latin America, Wal Mart sought to utilize the direct investment approach. In this regard, the organization established subsidiaries in the market. The establishment of the subsidiaries allowed for increased direct market influence in the market. A study by Nwankwo (2013) established that organizations adopting this approach have increased market influence in the industry. In this case, the study developed a hypothesis that subsidiaries' adoption allowed for increased market influence in the industry.
In its analysis, the study affirmed this hypothesis. It established that subsidiaries enhanced organizational foreign market success through a number of factors. On one hand, it allows for ownership and development of a brand name. Branding is an imperative new marketing tool that allows and provides for organizational strategic market positioning. For instance, in its expansion mechanism, Wal-Mart developed a subsidiary in Mexico formerly known as Sam’ s club (Luthans & Doh, 2012). The establishment allowed for an increased relationship between the organization and its customer base.
In this regard, the increased customer relationships in the market allowed for increased market influence as the organization was able to brand its products (Ming-Ling, Donegan, Ganon & Kan, 2011). This is the same case that applied in the organization's investments in Brazil. In its initial years in the market, the organization targeted Mexico, Brazil, and Canada as key among the Latin American nations in which it established its influence and subsidiaries. The Mexican and Brazil markets provided an investment opportunity due to reduce market competition as well as the reduced risk of substitutes in the market.
These are two key elements essential for enhancing eventual organizational success. This can be argued based on the porters’ five forces model analysis. In the model analysis, Karagiannopoulos, Georgopoulos, and Nikolopoulos (2005) argued that industrial success is based on reduced existing competition as well as a low possibility for product substitutes. The existence of such a market situation enables organizational industry success and strategic establishment and influence exertion in the market. Historically, it is established from the case study that the organization diversified its operations to the financial industry y in both markets.
This is a drastically developing industry with increased income levels and subsequent financial management ignorance reduction in the economies. Thus, both markets provide Wal-Mart with an increased market expansion potential into the future. In addition, the organization targeted Canada as an ideal investment destination (Luthans & Doh, 2012). In this case, the market, relatively mature, provides the organization with a conducive expansion environment due to its transparency and fair trade policies and practices. In developing into the discusses Latin American countries, the organization faced a number of cultural challenges that on the other hand presented growth and expansion potential for its models.
One key cultural challenge in the market was the existing financial management systems. The Latin American society was traditionally adapted to its own home storage for gained finances. Moreover, society was accustomed to the use of informal lending Shylocks. As such, the lending system was unregulated and minimal trust existed in the concept of money management agency mode (Bailey, 2004). Therefore, the venturing of the Wal mart business into the market faced establishment challenges.
In this case, the organization faced an increased challenge of establishing its market influence by establishing a business model that was in defiance to the existing societal cultural perspectives’ . Therefore, the organization faced an increased market challenge through increased promotional costs in a bid to establish and create increased market knowledge on the products offered in the new banking system.
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