Walmart's Expansion Strategies in China: Analysis Using the Product Lifecycle Approach

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Wal-Mart's Expansion Strategies in China: Analysis Using the Product Lifecycle Approach Introduction Wal-Mart's global expansion strategies in China have been the most successful of any nation the retailer has chosen to expand into. At present the company is still in the growth stage of the Product Lifecycle in the China. The company opened its first store in Shenzhen in August, 1996 and since then has opened over 100 stores in 51 cities, employing 43,000 associates, selling to over 5 million customers a week (Ming-Ling, Donegan, Ganon, Kan, 2011). Wal-Mart was able to succeed in China by concentrating the following three critical success factors: creating alliances with local and national Chinese government agencies and officials; embracing the small store urban operation so critical in larger Chinese cities; and a complete customization of their supply chain to the needs of this unique market's needs (Ming-Ling, Donegan, Ganon, Kan, 2011). The following is an analysis of their market expansion strategies using the Product Lifecycle (PLC) framework. Wal-Mart Growing in China Using the PLC Framework As A Foundation What differentiates the success of Wal-mart in China relative to the company's previous attempts to grow in Germany and other countries that were met with limited success is the segmenting of strategies by region and PLC-based execution. Wal-Mart deliberately defined their top three tiers of cities and used a PLC-based approach to growing their business

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