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The first reason that motivated the firm’s management team to consider entering the market is the intense competition in the domestic market.Over the years, the US retail sector has continued to experience an increment in the intensity of competition.After conducting a comprehensive market analysis, the firm’s management team decided to adopt acquisition mode of market entry.
In an effort to market its products to a large number of customers, the firm has adopted internationalization strategy.
Currently, Walmart operates in 27 different countries under 69 banners.
It is paramount for a firm to determine the most appropriate mode of entry in order to succeed.
There are different modes of entry that Walmart has adopted in its internalization effort.
Considering the size of Walmart’s operation, the firm has been able to attain higher economies of scale (Rocha & Luis 68).
Walmart has entered different international markets such as Canada, Brazil and Japan.
This has led to a decline in the sectors’ profitability potential.
In an effort to attain its profit maximization objective, Walmart’s management team made a decision to venture into the international market.
Additionally, the research will play an important role in determining the probability of succeeding.
Decision to enter the various international markets was motivated by a number of factors.