mploying 1,700,000 people worldwide, Wal-Mart commands the market at home and abroad and appears to be well-positioned for further growth internationally. According to Counterpunch writer Stan Cox, if Wal-Mart were a separate nation, it would rank number 5, ôamong ChinaÆs biggest export marketsùahead of Germany and Britainö (ôTurning People Into Profits: Wal-Mart's Magic Numbersö 2004). Do these ômagic numbersö translate into a solid competitive advantage for Wal-Mart despite past mistakes and current threats and weaknesses? The answer is almost certainly ôyes.ö
Wal-MartÆs strengths outweigh the many challenges that have beset it. In its first foray into the international market, it made a number of mistakes, such as stocking tennis balls that would not bounce in high-altitude Mexico City (Camerius 2003 21-16). It has done well in Canada, Mexico, and the UK, and over 80% of its international revenue comes from these three countries (Upbin 2000). Since then, however, it has in many cases mastered the adaptive challenges posed by venturing into international markets, tailoring its stores and their stock more closely to the cultures they are located in and to address the sometimes fierce local competition. One such strength is its successful global brand identity. Bobby Martin, an early President of the International Division, is quoted as saying, ôWe are a global brand name. To customers everywhere, it means low cost, best value, greatest selection of quality merchandise, and highest standards of customer serviceö (Camerius 2003 21-18). A local shop owner confided that Wal-MartÆs brand name is so compelling that retailers whose businesses depend on high traffic attempt to locate their stores near a Wal-Mart, where the parking lots are always activeùday or night.
No one would argue that low pricesùpopular in any market, domestic or internationalùare the hallmark of Wal-MartÆs success. Wal-MartÆs great...