Walmart's African Expansion
(8 pages of text)
Walmart has decided to expand into Africa through the acquisition of the South African consumer goods retailer Massmart. In doing so, the world’s largest retailer faces significant backlash from South Africa’s largest union. The company must also contend with price-sensitive consumers and a lack of supplier relationships on the African continent. Will Walmart appeal to South African consumers and achieve the volume of sales needed to make its first African presence a success.
This case provides a platform to discuss issues around international expansion, with an emphasis on the differences and similarities between an increasingly significant emerging economy, South Africa, and the economic powerhouse, the United States. Students will tackle a variety of political, social and economic issues regarding cross-border expansion between two different organizations operating in different contexts. Students will increase their understanding of strategic international business issues, especially in relation to multinational enterprises attempting to expand into emerging economies.
South Africa, Large, 2011
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