Wal-Mart case study - China operation
Essay from the year 2007 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 70, Oxford Brookes University, 71 entries in the bibliography, language: English, abstract: China, a country with population of 1.3 billion people and is currently experiencing rapid growth in economy since it open itself to the world for investment. In the year of 1994, Wal-Mart made its first move to China by selecting CITIC (China International Trust and Investment Corporation) group as local partner for the investment. Opening its first store in Shen-Zen in the year of 1996 and since then has grown to 81 stores in 20 more cities around china. In China, Wal-Mart is using adaptation strategy where it locally sourced its product although the organizational culture is standardized with the home country. Adaptation strategy does not apply only to the product wise, in term of the store formats are also adapted to the local cultures where racks height, and stores layout are also changed to meet local taste. From the macro-environment view of the china retailing industry, Wal-Mart will face threats on the political side where the government is not transparent enough in the policy making. Moreover, it is currently anticipating the economic big turnover by tightening the regulations on the land although China is still encouraging foreign investment. In China, Wal-Mart will face strong competition from its arch-rivals Carrefour and other strong local competitor such as Lian-Hua supermarkets and China Resources Enterprise of which both are the pioneers in the China retailing industry. The current position of Wal-Mart in China is still far away to be as the same level with them as Wal-Mart is unable to apply its superiority in logistics that win the competition in USA. Although it is a vast market, not all the populations have great spending power. It is a country of haven and have not, where the income disparity become a large issue. The middle income class only represents 25-30 millions people and mostly remain in the urban area. China is a very fragmented market and rich in cultures background which may trap companies to generalize them. Despite of it, China is certainly a very attractive market to invest in as the indicators in economic has been shining for the last twenty years.
What people are saying - Write a review
We haven't found any reviews in the usual places.
Other editions - View all
6.2 Marketing 81 stores Analysis Barboza & Barbaro Beijing Bhatnagar billion yuan Boston Consulting Group business in China buying power China Embassy China market China retail market Chinese cited on 13thJune cited on 21st cited on 23rd cited on 23rdJune cited on 7th CITIC group competition culture customers disposable income entered the China et.al Euromonitor 2006 fresh geocentric pricing strategy Golden week Government growth host country http://www.gmid.euromonitor.com.ezproxy.lib.uts.edu.au/Reports.aspx hypermarket ICFAI International Marketing Review June market in China Marketing Mix Marketing Strategies middle class Moreover number of stores Oil of Olay People’s Daily players power distance Price Water Cooper Pukthuanthong retailer in China Sam Walton SAMs club Schafer Shen-Zen Superior service suppliers to lower Trust Mart unlike Carrefour urban area Wal-Mart and Carrefour Wal-Mart annual report Wal-Mart in China Wal-Mart is currently Wal-Mart N/D Wal-MartChina 2007 Water Cooper House western Xinhua Zimbabwe