Case Analysis: Haier in Japan and Walmart in Africa
Haier’s global venture in Japan was a non-traditional type of expansion where the target expansion market is a difficult market with plenty of tough competition, while Walmart’s current strategy in Africa can be labeled as a traditional expansion strategy. However, Haier’s expansion tactics are identical to Walmart’s first international expansions; both Haier and Walmart first expanded into nearby geographic markets in Japan and Mexico respectively. The argument about Walmart’s current expansion strategies being traditional, is certainly valid, however, the American retail juggernaut has already reached most major markets in the world, while Haier is still in the preliminary phase of its global ventures.
- Walmart in Africa: target easy (emerging) markets.
- Haier in Japan: targets developed markets first, then shift interest towards emerging markets.
Cultural/Organizational Structures and Challenges
In the case of Haier in Japan, Chief Executive Officer, Zhang played a huge role in the company’s development. Zhang primarily resolved an unfortunate financial situation by taking over a failing refrigerator factory, he then implemented his own philosophy, which encourages brand building and reinforces product quality. Zhang turned the business around by installing a collective ownership system between him and his employees. In the case of Wal-Mart in Africa, and after some negotiations took place, the Competition Appeal Court of South Africa ruled that U.S.-based Wal-Mart stores could go ahead with its US 2.4 billion purchase of Massmart.
With Zhang’s management and inverted triangle system, and Duke’s expansion into Africa with the purchase of Massmart, both desired to expand their companies into different areas of the world. “It is very easy to merge and purchase any enterprise with capital, but success can only be achieved with culture and...