Case analysis and discussion $6$: Walmart Goes All In on Africa

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Walmart Goes All In on Africa

By Alexandra Wexler $|$ September $11,2023$

Topics: Foreign Entry Strategies, Global Strategy

Summary: More than a decade ago, Walmart spent $$2\mathrm{.}4$ billion to buy a controlling stake in South African retailer Massmart, which also had operations in a dozen other sub$-$Saharan countries. Although Massmart has struggled and exited many countries, Walmart has decided to double down on Africa, buying the remaining $47\%$ of Massmart.

Questions:

$1.$ Based on this article and what you have learned in other classes, in which countries has Walmart been successful and in which countries has Walmart been less successful?

$2.$ What is the pattern?

$3.$ What kinds of countries fit the Walmart model and which kinds of countries evidently offer Walmart fewer opportunities?

$4.$ How do African countries compare in this regard?

$5.$ On paper, are sub$-$Saharan countries the kinds of markets where Walmart should expect to do well? Why or why not?

$6.$ How have Walmart$$s investments in Afrika fared in practice?

$7.$ What mode of entry did Walmart use to penetrate sub$-$Saharan countries?

$8.$ Finally, why is Walmart doubling down?

$9.$ Do you think Walmart will eventually make money in Africa?

$10.$ What is the basis of your thinking?