Wal-Mart A Case for Latin American Expansion

While thither is still process potential in the US merchandise through with(predicate) green initiatives, improved cost and technology efficiency, and its neighborhood market format, Wal-Marts greatest growth opportunity lies in its summation competency. Wal-Marts success has been driven by strong chisel in expansion, leveraged through best in class supply chain management. In a saturated US market, Wal-Mart should look to emulate this schema in emerging markets. Wal-Marts international footprint is relatively broken with limited presence in the three primary markets of China, Latin America, and Europe. We believe Latin America has the most potential growth opportunities due to its proximity, culture, economics, and infrastructure.

Wal-Marts domestic expansion has progressively change magnitude every year. For precedent, from 2004 to 2008, the company opened 976 supercenters in the united States, an average of 244 supercenters a year.¹ There is now a Wal-Mart store within 15 minutes of 90% of Americans.² The inevitability of this continue expansion is market saturation. This has already become apparent as the worlds largest retailer has ventured off its core competency into on-line music, health care and other lowest-cost initiatives to maintain its double-digit percentage growth of revenue.

While expansion into new products and services still debate Wal-Marts low cost structure, other companies have become more than adept at securing market share. A recent example is the on-line music industry which Wal-Mart dominated until February of 2008, at which taper Apples 19% market share surpassed Wal-Marts 16%.³ Apple gained sovereign share despite Wal-Mart pricing its songs at $0.94, a mount five cents cheaper than Apples iTunes cost of $0.99 per song.⁴

Wal-Mart also faces increased domestic concern over its negative externalities. The retailers business dynamics have been harshly criticized and have led many to dare the companys ventures into other industries forcing Wal-Mart to spend a substantial portion...

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