Wal-Mart in Canada

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Name Course Instructor Date Wal-Martin CanadaWal-Martis one of the largest retailers with outlets in different parts ofthe world. The Canadian division of Wal-Mart has been in operationfor at least 20 years. Wal-Mart has enjoyed a relative success in theCanadian market. This is mainly because the Canadian market isrelatively similar to the United States market. As a result, therehas been an attempt to replicate the American format of Wal-Martretail outlets in Canada. However, before opening a new Wal-Martretail outlet in any country, there are some factors the managementneed to consider. This is mainly because a retail store is a megainvestment that requires huge capital. Social, economic, legal andpolitical factors will have an important role in the success of theretail store. The choice of Canada is based on the understanding thatthe social and political environment in Canada is similar to that ofthe United States where Wal-Mart is located (Gaspar,2014).Themost important factor to consider when starting a new retail store inCanada is the consumer factors. This includes demographic factors,lifestyles and cultures of the immediate population. For example,Wal-Mart would like to locate a retail store in a major city where itis accessible by a large number of shoppers. Additionally, thecharacteristics and lifestyles of the target customers are veryimportant. Majority of Wal-Mart retail outlets target the middleclass members of the society. In Canada, the middle class mainlylives in major urban centers. As a result, majority of Wal-Martoutlets would be located in major urban centers. Thus, a new Wal-Martwould probably consider being located close to an emerging middleclass residential estate in a major city such as Ontario.Technological factors are also important to consider. This includesboth the technology used by the customers as well as technologiesused by the retail outlet. Canada is a relatively developed country.Therefore, the target clientele is significantly influenced bytechnology. Since the Canadian middle class uses advancedtechnology, it is expected that a retail store will also use similartechnologies in improving customer experience (Asefeso,2012).Itis also important to consider the factors that influence thecompetitiveness of the store relative other similar retail stores.For example, it would be inappropriate to locate a retail store nextto another major retail outlet. This is because the massivecompetition will have a negative impact on the performance of theretail outlet. However, this is largely dependent on thecharacteristics of the immediate market. For example, Wal-Mart maydecide to start a retail shop near another major store due tostrategic reasons. This may include a large clientele base in thearea or if there is an identifiable gap in the market. Additionally,if the location is strategically near the proximity of the targetclient, a competitive location would be desirable even when there areother retailers (Asefeso,2012).Thelegal and political factors re also important to consider whenstarting a new retail outlet in Canada. Canada has a relativelystable environment. There are no incidences of political instabilityor political influence in Canada. The political situation in Canadais relatively similar to that in the United States. Wal-Mart is not anew company in Canada. Therefore, there are relatively less legalhandles. However, the store will require several business permits andlicenses before its starts operating. The microeconomic situation inCanada is also very essential. Since the economic outlook of Canadahas been relatively good in the recent past, starting a retail storemakes economic sense (Asefeso,2012).

References

Asefeso, A. (2012). CEO Guide to Doing Business in Canada,ISBN 147108244X, AA Global Sourcing Ltd.

Gaspar, J. (2014). Introduction to global business : understandingthe international environment and global business functions,Mason, OH: South-Western Cengage Learning.