Walmart China Case Analysis Essay

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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…show more content…
(1) Providing great customer service, (2) Showing respect for the individual. “Sundown rule” required for employees to answer requests from customers by the end of business hours WALMART IN CHINA Key problems in China Market: Wal-Mart faced many problems such as backward infrastructure, diverse regional consumption patterns. Since the store is located in remote locations so as to facilitate ease, they had lot of trouble with the count of people turning over to the stored o purchase. The main reason for this was, growth in rural areas was much slower. Moreover the industry was crowded with both internationally renowned retailers and domestic players which resulted in high store density in larger cities. Tough competition with local rivals was another problem because local rivals were competing head on with foreign operators. The supermarket segment was primarily dominated by domestic players . The localized demand, localized supply base, and localized distribution in China also provided domestic players with an edge in establishing strong regional dominance when foreign retailers found it hard to leverage national presence in a regional market. Though China saw substantial growth but many factors either a legacy of history or few phenomena born of reform still impeded the fast development of national market. Disparity in Income levels: There is a broadened gap in wealth between rich and poor and between urban and rural populations

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