Walmart China Essay

1484 Words Mar 23rd, 2013 6 Pages
Case Study #1 Wal-Mart China

How Wal-Mart China should push “sustainability” into the next level Research Conducted by Wal-Mart China and third parties found that customer satisfaction was most affected by the value perceived by customers. The Chinese market is known for its price sensitivity. Customers seem to be far more concerned with whether or not they are receiving the best price, then whether or not Wal-Mart China is committed to its sustainability initiative. This sentiment was illustrated by the disappointing sales of CFL bulbs in Wal-Mart China. CFL bulbs offer real energy savings which would benefit the purchaser in the long run, but they cost more the
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However, this approach only works for vendors who are already interested in including sustainability principles in their business models. For vendors who are not concerned with sustainability Wal-Mart China can still have a powerful influence. The larger and more successful Wal-Mart China becomes the more lucrative it is to become one of its suppliers. If vendors want to get their products on Wal-Mart shelves they need to meet certain sustainability standards. This is a powerful incentive towards compliance. Also by allowing vendors the opportunity to gradually work their way towards compliance, more vendors are likely to take up the challenge. For improving sustainability in distribution it may be useful for Wal-Mart China to conduct a Life Cycle Assessment (LCA). An LCA measures the environmental impact of products and processes from the moment raw materials are extracted from the earth all the way to the point where materials are disposed of, recycled, or reused. This type of analysis would allow Wal-Mart China to recognize opportunities in the life cycle of the products they sell where negative impacts could be reduced. Such analysis would need to be conducted periodically as new technologies and methods may make further system improvements possible. But considering the restrictions they are encountering in China, a lot of initiatives would be cost-prohibited. Here, a

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