Strategy Highlight 10.1 discusses the failure of Walmart in Germany. Using the CAGE distance framework, discuss how
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Strategy Highlight 10.1 discusses the failure of Walmart in Germany. Using the CAGE distance framework, discuss how Lidl should seek to be successful with its move into the US market.
Data from Strategy Highlight 10.1:
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Strategy Highlight 10.1 Walmart Retreats from Germany, and German Ultra-Low-Cost Grocers Invade the United States Walmart entered Germany by acquiring the 21-store Wertkauf chain and 74 hypermarkets from German retailer Spar Handles AG. Walmart also entered Germany using the U.S. operation policy and procedures, such as the Walmart cheer and door greeters. As the strategy highlight discusses, this did not work well. Worse yet for Walmart, after the success that European Aldi has had in the United States, Lidl has also decided to cross the Atlantic and enter the U.S. grocery marketplace, thus competing on Walmart's home front. Lidl has several dozen stores mostly on the U.S. East Coast. At the same time, Walmart is building its online capabilities and presence in efforts to compete against Amazon. Because groceries are about 60% of annual revenues, getting this right is crucial for Walmart's future success.
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