What is WalMart's acquisition strategy for taking over other companies?

WalMart, Acquisition Strategy, Mergers, Strategic Management
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I'm looking at, in particular, how WalMart actually goes about acquiring other companies i.e. in the case of ASDA in the UK. Not putting companies out of business. I'd like to know their strategy.

In the case of ASDA it was a company they knew very well because they'd been co-operating for years. ASDA announced a plan to merge with another company. It was a public company traded on the London Stock exchange, so Wal Mart just put in a higher offer and bought the stock.

In other words it was an opportunistic move. Wal Mart didn't have a presence in the UK, but figured they would need to buy something eventually and wanted to buy ASDA while it was still available.

Move in....set up...sell low...drive em out.

Just to be cheaper .And it works.We are carrying a better clothing line now to compete with Target our only real competitor.

Their business model is like those of most big chains.

A wide variety of products are sold just barely above the profit margin. Money is earned for selling such products in bulk.

Walmart rarely acquires companies in the US, because it doesnt need to, and would face anti-trust problems. They do look for overseas acquisitions, and their parameters are fairly the same as for other corporations:
1. Find a retailer that caters to the same customer profile as Walmart.
2. Look for retailers that are undervalued, and or poorly manged
3. Only buy in countries that are stable, and are not anti-business, or anti-foreign ownership.

i'm not sure what you're questioning. wal-mart has only aquired other companies in foreign markets.

in the US they prospect land to build on and then set up shop.

if you're wondering about them "putting other stores out of business" then, this gets tricky. they aren't actually aquiring those stores, merely causing their business to deteriorate. this is because the other store cannot compete for whatever reason.

the best thing for any store to do when near a wal-mart is to specialize. manys stores thive near wal-mart b/c if wal-mart doesn't have it, then they do. the craft store A.C. Moore is a perfect example. they specialized in crafts that wal-mart can't compete with. sure, wal-mart has a craft department, but not one like the entire store of A.C. Moore. same with Lowes, Home Depot, etc. this can be said of "mom and pop" stores also. don't try to compete with wal-mart by ebing the same. be soemthing different and you will thrive. the best is when you specialize and are close to wal-mart...you will increase your customer base just be being close to wal-mart. what they don't have you do!

i was with wal-mart for about 5 years and left as a manager. i can tell you some things, but not alot, since i can't "tell" until i've been gone for 5 years.

i'll put this on my watchlist in case you add some details.

EDIT:
in the management program at Wal-Mart, managers read Sam Walton's books. he wrote 3, i believe, and they are great reads. he was entertaining and well versed in his business, but doesn't make the reader feel alienated about the subject.
please remember that the business has changed a bit since Sam's departure, so what you're reading was a generation ago and there is a newer generation building wal-mart now.

They are going to be the company that will take over the world..... You will have to take the mark in order to even shop there..... lol

They don't. Walmart doesn't take over other companies, they just get the market to shut them down due to the desire to have lower prices for the same products.

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