Answer :

Final answer:

Walmart's successful entry into the UK market was achieved through the acquisition of Asda in 1999, using its economies of scale to offer lower prices and leverage the existing brand presence.

Explanation:

The entry strategy of Walmart into the UK market involved acquiring a major local retailer. Walmart took over Asda, one of the UK's leading supermarkets, in 1999, hence gaining immediate access to the market without the need to build a new brand from the ground up. This strategy worked well because it combined Walmart's strong production model and cost structure with Asda's established market presence and customer base. Walmart's ability to undercut competitors' prices played a significant role in its success. The strategy leverages Walmart's economies of scale, which often allows them to offer lower prices than their local competition, leading to the term "Wal-Martization" of the economy. However, it is also important to recognize that this has brought about negative implications for small towns, where local businesses struggle to compete with the giant retailer.

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