Wal-Mart was sentenced to pay a fine.
Part of the problem was the lack of infrastructure. It started in by opening two stores through a joint venture in Mexico.
However, the customer reaction was rather negative, because customers who normally do their grocery shopping in discount supermarket chains are used to self-service. This points towards a competitive landscape that might prove to be challenge for Wal-Mart to succeed in.
Wal-Mart could bring its expertise in improving retailing efficiency while its partner could provide Wal-Mart its local supplier and labor union relationships, brand recognized by customers for low prices, and local market and legal knowledge.During the s, Wal-Mart began to further expand and thus pushing some retailers to closing some of their regional stores. Through collective bargaining and related tactics, they can have a strong influence on political decision making. You are on page 1of 2 Search inside document The main challenges faced by Wal-Mart in Germany are: Germany has a strict planning and zoning regulation designed to protect traditional retailers. A related problem is that these stores were located far apart, which resulted in high logistical costs. Wal-Mart could bring its expertise in improving retailing efficiency while its partner could provide Wal-Mart its local supplier and labor union relationships, brand recognized by customers for low prices, and local market and legal knowledge. The objective was to expand to stores in Germany. The final outcome was that Wal-Mart had to abandon its offerings in Germany. Wal-Mart had been able to implement its Every Day Low Price strategy by focusing on 1 developing a sophisticated logistics system with heavy information technology investments, 2 efficient distribution system by placing retail stores close to distribution centers and using RFID technology, and 3 being a non-union employer. As a result, the retailer conceded a salary increase that was 0. It started in by opening two stores through a joint venture in Mexico.
The plan to organically scale up operations would not work well in Germany given the current stringent regulatory environment. Unlike many of its German rivals, Wal-Mart offered credit card payment and free bags for goods purchased, improved store interiors, and friendly customer service. This resulted in little to no success rate especially since the German government did not want retail businesses to pull away customers to outside of a town leaving old buildings and monuments in the city center vacant.
In Germany, there is extreme competition in the retail food sector.
Labor Union Relations Germany service sector union Ver.