It is interesting that Wal-Mart failed in Germany considering the United States and Germany are
relatively similar when it comes to standards of living, shared values, access to technology, and
societal trends. First I’ll compare the two countries using Hofstede’s five dimensions of culture:
Dimension Germany United States
Power Distance Low Low
Individualism vs. Collectivism High Individualism Very High Individualism
Masculinity vs. Femininity Masculinity Masculinity
Uncertainty Avoidance Somewhat High Somewhat Low
Long-term Orientation High Low
Germany and the United States are very similar in the power distance dimension, which results
from both countries having a strong middle class. Both countries exhibit a high individualism
dimension, and one benefit of this is families relying on themselves (although this is changing in
the United States.) Masculinity is fairly equal between the two countries, resulting in a culture
of competition, achievement and success. When it comes to uncertainty avoidance, the
countries begin to veer away from each other culturally. Germany is somewhat uncertainty
avoidant, which makes it more cautious and more risk averse, and its citizens place value on job
security, retirement benefits and solid expectations. The United States leans more towards low
uncertainty avoidant, being less resistant to change and risk in the interest of more immediate
