ASDA: Organic Growth of a Retailer in the United Kingdom?

Abstract

This article analyzes the role of glocalization in Wal-Mart's venture in the United Kingdom. In 1999, Wal-Mart acquired ASDA, a British food retailer. Glocalization refers to strategies adopted by multinational corporations to cater to local tastes and differences after entering a foreign market. The authors' main argument is the following: after Wal-Mart acquired ASDA, it did not manage to successfully impose its Wal-Martization strategies because they consisted mainly of “organic growth” strategies. Organic growth is a practice whereby a corporation overpoweringly imposes its home-based blueprint of product consumption and corporate culture on foreign cultures. As demonstrated in this analysis, Wal-Mart had to drop its Bentonville-based shopping and corporate formula and, instead, adopt the principles of glocalization.

KEYWORDS:

• ASDA
• culture
• globalization
• glocalization
• marketing
• organic growth
• United Kingdom
• Wal-Mart

Additional information

Notes on contributors

Jonathan Matusitz

Jonathan Matusitz is an assistant professor in the Nicholson School of Communication at the University of Central Florida. His academic interests are globalization, intercultural communication, organizational communication, communication & technology, and health communication.

Kristin Leanza

Kristin Leanza is a research assistant in the Nicholson School of Communication at the University of Central Florida. Her academic interests are globalization, intercultural communication, organizational communication, family communication, and psychology.