Analyzing foreign market entry strategies: the case of Wal-Mart’s entry into Thailand

Abstract

The paper is devoted to foreign market entry strategies, particularly, studying the case of the entry of the US company Wall-Mart–the world leader in whole sale and retail trade– into the Thailand market. In terms of globalization, many firms are trying to expand their business by entering foreign markets which determines the relevance of the study. That brings many social and economic benefits. However, the process is related with big risks which requires developing proper strategies for business success. In the research it is analyzed the external business environment, and causes why Wall-Mart has decided to enter the Thailand market, taking into account macroeconomic characteristics, growing domestic consumer demand, purchasing trend, as well as positive forecasts of sales growth in the overall retail sector. Moreover, the entry modes of Wal-Mart entering the Thai  market are considered. It is performed the risk assessment and risk management strategies developed, accordingly. The importance for international businesses to conduct an in-depth external business environmental and risk analysis is proved before entering into other markets, as it provides insightful information about the features of the host country,  its culture, knowledge of the local market and consumer needs, competitive business strategies and etc.