Sam Walton started with a single store in 1962. By 1990, the Wal-Mart chain had become the nationÆs number 1 retailer (ôWal-Mart Stores, Inc. Historyö). When it entered the international market in 1991, Wal-Mart was already a highly successful domestic corporation with 1,573 stores in 35 states and expansion plans in the works for spreading out into the adjacent states (ôWal-Mart Fact Sheetsö). Wal-Mart has since built over 1,500 international stores in nine countriesù Argentina, Brazil, Canada, China, Germany, Korea, Mexico, Puerto Rico, and the United Kingdomùand owns a 37.8% interest in Seiyu, Ltd., a leading Japanese retailer (ôWal-Mart Fact Sheetsö, Fig. 1). By building a global chain from that single store in less than thirty years, Sam Walton has outstripped his biggest competitors and prompted industry analysts to examine his strategies and methods.
With a view to making the connection between Wal-MartÆs international beginnings and its situation today, a strategic audit of Wal-Mart International reveals the companyÆs current position, as well as its strategic intent and the other considerations that impact its success in the international market. Wal-Mart clearly intends to continue expanding in international markets; in fact, the companyÆs web site states:
We view Wal-MartÆs expansion throughout North America, Latin America, Asia and Europe as a solid foundation with many promising areas for further growth. International sales reached $47.5 billion in fiscal year ending 2004, a 16.6 percent increase over the previous year, and operating profits rose to $2.3 billion, an increase of 18.6 percent (ôWal-Mart Fact Sheetsö).
Furthermore, an examination of Wal-MartÆs standing shows that its Corporate Governance Quotient as of August 1, 2005 is better than 74.3% of S & P 500 companies and 96% of Food & Staples Retailing companies (ôWal-Mart Stores Inc.ö). Employing 1,700,000 people worldwide, Wal-M...