Swot Analysis Developing Country Paper

3267 Words14 Pages
Abstract This case is about the challenge that Walmart has been facing in China. Even though Walmart is the world’s largest company in terms of sells, their success in China has not been the same as in the U.S. The challenge, Walmart faced a problem coming to China when using marketing strategies in China, the “Every Day Low Prices” in their market. It has cost the company years of trying their best to succeed in China. The biggest challenge the company faced was whether it could transport its successful model to win the market in China with a low cost structure. This paper is going to be about every aspect Walmart had to face to enter China: their product development, the market analysis, and distribution channels; along with their price…show more content…
Because of the initial failure entering China’s market, Walmart decided to reconfigure their business plan, logistics, stores floor plan and supply chain. In addition, the company faced a completely different experience with the Chinese people because they have a different buying power. They put a great importance on their gross income and their willingness to purchase goods. Walmart realized this element when they notice that despite 80,000 people visiting the store that did not guarantee that all 80,000 were going to buy. It is common in the Chinese people to go window-shop which means visiting a store just for fun and not for buying. Barriers to Entry The barriers to entry that Walmart faced were: large cultural differences, local protectionism, backward infrastructure, too many players, and government restriction on foreign ownership and import barriers. The largest obstacle the company faced was the different government regulations restricting foreign businesses. Initially Walmart was permitted to open stores in only eleven cities in China. Today, the company continues to face the challenge to dominate China’s market. They are constantly looking for ways to lower price on products without reducing their quality of goods. This approach in return, provides the opportunity to strengthen their position in the retail industry. Currently, Walmart has 338 retail units: 222 supercenters, 104

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