Wal-Mart International: The Challenge Abroad.

Given that its sales account for only a small slice of the vast $7 trillion global retail marketplace, Wal-Mart in fact has plenty of places around the world to conquer. And Wal-Mart will increasingly need to look overseas to maintain its brisk growth as its domestic markets mature. But despite its successes so far, further expansion abroad will be a challenge for Wal-Mart. The reality is that its early success abroad has been concentrated in only a few countries where it was able to make key acquisitions. Expanding on those successes and building on the modest starts in other countries will be difficult, even for Wal-Mart.

To capitalize on the global opportunities, Wal-Mart’s international division will need to take action on several different fronts, ranging from enhancing its global procurement capabilities to entering new countries. Despite the challenges, Wal-Mart will undoubtedly emerge as a truly global retailer. That should mean leading market positions in Europe, Japan, and emerging markets - places where Wal-Mart’s presence is limited today. Competitors and suppliers around the world will need to prepare to compete in markets that will be shaken and remade by Wal-Mart’s global expansion.