8. Why Germany? Robust consumer spending Third largest economy of the world $370 billion German retail market was hugely lucrative Good transportation infrastructure, easy stock replenishment Centralized location of Germany to expand business into Europe Germany was price sensitive and perfect for Wal-Mart’s EDLP (Every Day Low Pricing)
9. Setting Up Setup a centralized distribution system Top management from US, hired rest from Germany Acquired 21 stores of Wertkauf and 74 Interspar stores Interspar and Wertkauf controlled 19% of the German retail market Reconstructed Interspar’s stores, initial investment of US$150 million German govt. denied licenses for food and grocery retailing so they had to enter through an acquisition
15. USA versus German cultures particularly public versus private space explaining: ‐ German resistance to baggers and greeters ‐ German issues of company control over private life of employees
16.
17. Govt. restrictions limited Wal-Mart to acquisition option
28. “There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money some where else.” -Sam Walton