Walmart entered Germany in 1997 Walmart exited Germany and its attractive grocery/retail market after only 9 years in business. Issues: Ethnocentric View (lack of adjustment to local culture) Labor relations (pro-labor union culture in Germany): Legal/Political Environment Shopping culture (Germans prefer to shop in smaller stores, no bulk purchases Environmental Issues (Germans are too “green” and oppose the plastic culture) Ethics (different perceptions of what is considered ethical; such as spying on employees) Differences in corporate culture (German employees and customers did not buy into the US corporate culture – smiling ) Lack of economies of scale/ High competitive environment in Germany grocery market Strategy was not transferrable: Low-cost leader with huge supplier network (shop local is more important in Germany than the US) Price sensitivity (consumers are already used to local chains with cheap prices but higher quality): Economic Environment
