Wal-Mart’s tagline which boasts Low Prices. Always, depicts the core idea and operational strategy which the company has employed since its inception in 1962. Like any multinational giant, it started with humble beginnings as the brainchild of a single man. Sam Walton founded the first discount store in Arkansas and this store format was highly popular among consumers leading to the incorporation of Wal-Mart Stores Inc. on Oct 31, 1969.
The company also opened the first warehouse SAM’s CLUB in 1983 and soon proceeded to open supercentres due to consumer demand and preference for buying all kinds of merchandise from a one stop shop. Wal-Mart went global by opening its first Sam’s Club near Mexico City and then proceeded to open stores all over the world in Europe, Asia and Americas (Wal-Mart)
As Wal-Mart continued to expand its operations all over the world either by acquiring superstores or popular neighbor stores in the countries where it was expanding and increasing its associates all over the world by the thousands, it neglected a basic factor of its potential consumer market and that was the cultural and social traditions of the country which affected the buying behavior process of the citizens of that country and also played a significant role in the choices made by the consumers (Yoffie 04) Wherever Wal-Mart expanded, it tried to impose its business model of bulk shopping, supercentres and as far as employees were concerned a cheerful workplace attitude. However, due to this, it faced a problem in Germany where employees were not particularly enthusiastic about the cheerful routine of Wal-Mart because in Germany it might be considered impolite to be overly friendly with a customer.