Walmart China Case Analysis Essay Example
WALMART-China CASE ANALYSIS
Walmart-world’s largest retailer, is a successful as a king of retailing in US market. After this success, Wal-Mart Stores started eyeing areas beyond its home country and looking at unchartered waters in the overseas markets.
Wal-Mart’s mature discount concept and business model were ready to be exported. The management firmly believed that consumers were alike everywhere around the world in searching for quality products at great prices and desiring to be treated well. So, Walmart began its expansion strategies in the Chinese market.
The article mentions the reasons for Wal-Mart's decision to go global , discusses in detail the entry strategy and the localization strategies including procurement and store management. The corporate governance practices followed by the company in China is also discussed. We now analyze the problems the company faced in China because of the differences between the operational and cultural environment of its home market and the Chinese market. Finally, a discussion on the future prospects of the company in the Chinese market and my recommendations is presented.
Success of Walmart in US- Key factors
Strategy in US: Market Capture: Wal-Mart has aimed to serve customers who had to travel long distances to save money. It opened “one horse”, rural, backwater towns ignored by other retailers. It grew outside competitors' radar screens to a substantial size to command economies of scale. Public listing provided Wal-Mart with ample resources to finance there by leading to more rapid expansion.
Strategy to win strong customer base: It sold brand products for less by offering multiple store formats, including discount stores, supercentres, warehouse stores, and neighborhood markets. This strategy brought customers from all income levels.
Competitor Restriction: With its unique combination of culture and strategies, Wal-Mart set itself apart from its competitors. It entered the market as
Walmart-world’s largest retailer, is a successful as a king of retailing in US market. After this success, Wal-Mart Stores started eyeing areas beyond its home country and looking at unchartered waters in the overseas markets.
Wal-Mart’s mature discount concept and business model were ready to be exported. The management firmly believed that consumers were alike everywhere around the world in searching for quality products at great prices and desiring to be treated well. So, Walmart began its expansion strategies in the Chinese market.
The article mentions the reasons for Wal-Mart's decision to go global , discusses in detail the entry strategy and the localization strategies including procurement and store management. The corporate governance practices followed by the company in China is also discussed. We now analyze the problems the company faced in China because of the differences between the operational and cultural environment of its home market and the Chinese market. Finally, a discussion on the future prospects of the company in the Chinese market and my recommendations is presented.
Success of Walmart in US- Key factors
Strategy in US: Market Capture: Wal-Mart has aimed to serve customers who had to travel long distances to save money. It opened “one horse”, rural, backwater towns ignored by other retailers. It grew outside competitors' radar screens to a substantial size to command economies of scale. Public listing provided Wal-Mart with ample resources to finance there by leading to more rapid expansion.
Strategy to win strong customer base: It sold brand products for less by offering multiple store formats, including discount stores, supercentres, warehouse stores, and neighborhood markets. This strategy brought customers from all income levels.
Competitor Restriction: With its unique combination of culture and strategies, Wal-Mart set itself apart from its competitors. It entered the market as