After its beginning in 1962 Walmart ever since had constant growth rates and
successfully gained market share in the merchandise and food retailing markets. “By
1990, however, Walmart realized that its opportunities for growth in the United
States were becoming more limited”. To keep steady
growth rates and profits the company decided to expand globally. The core competency of Walmart is the price.Selling merchandise and food for low prices made them earn market shares andcontinue the growth rates. Going global gives companies the opportunity of usinglocation economies to secure the quality, use economy of scale to lower the productions costs per unit and benefit from learning effects. A global supply chainand global markets will lower the production costs since more volume is orderedfollowing a higher demand trough international markets. Especially for Walmartexpanding internationally supports and secures their core competency: Sellingeveryday life goods at a low price.