Answer:
I can provide you with some information and insights on Wal-Mart’s attempt and failure to enter the German market. Wal-Mart is the world’s largest retailer, but it has not been successful in every country it has tried to expand into. Germany is one of the examples where Wal-Mart faced many challenges and obstacles that ultimately led to its withdrawal in 2006..
Some of the reasons why Wal-Mart failed in Germany are:
Wal-Mart did not adapt to the local culture and preferences of the German consumers and workers. For example, Wal-Mart’s policy of smiling at customers and greeting them was seen as intrusive and annoying by many Germans, who value privacy and reserve smiles for close friends and family. Wal-Mart also tried to impose its American-style management practices on its German employees, such as forbidding dating among colleagues, encouraging whistleblowing, and conducting motivational training. These practices were met with resistance and resentment by the workers, who felt they violated their rights and dignity.
Wal-Mart faced strong competition from well-established and efficient German retailers, such as Aldi, Lidl, and Metro. These retailers offered lower prices, higher quality, and better service than Wal-Mart, and had loyal customer bases. Wal-Mart also failed to secure good locations for its stores, as many of them were in rural areas or outskirts of cities, where customers preferred to shop locally or online.
Wal-Mart did not understand the legal and regulatory environment of Germany, which was different from the US. For example, Wal-Mart had to deal with strict labor laws, high taxes, environmental regulations, and trade unions that protected the rights and interests of the workers. Wal-Mart also faced antitrust investigations and lawsuits from competitors and authorities, who accused it of predatory pricing, unfair competition, and market manipulation.
These are some of the main factors that contributed to Wal-Mart’s failure in Germany.. I hope this helps you understand the challenges and lessons of international business expansion.