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Wal-Mart's Growth Plan in China - Case Study Example
Author : ondrickajustyn
Pages 8 (2008 words)
Wal-Mart's everyday low price strategy has been a huge hit in USA. It has made it a leader in the retail of the US economy. Even after being in China for 10 years; Wal-Mart has not been able to obtain positive ROI. This case analyses the strategy of Wal-Mart in China and the major issues being faced…
The case starts with a brief history of how Wal-Mart was formed and the strategy it employed to grow under the radar of big retailers and never come in direct competition with them. It talks about the reasons of success of wall mart - everyday low prices, customer focus, and relentless cost control, partnership with suppliers and unrivalled distribution and logistics management. After giving details how Wal-Mart become a huge success in USA; the case goes on to describe its China venture. It takes us through the history of retail market in China. It talks about retail being a centrally controlled business to the phase wise opening up of the sector to foreign players. In the end the case talks about many challenges being faced by Wal-Mart in China such as income disparity , local protectionism , infrastructural deficiencies , regulatory restrictions , lack of IT infrastructure and the different consumer behaviour of Chinese consumers than their counterparts in North America. The case makes us ponder over these difficulties being faced by Wal-Mart even after 10 years of starting operations in China.
1) Everyday Low prices -This strategy of Wal-Mart was able to win a large number of customers. It helped in successfully addressing customer's disappointment in constantly changing shelf prices. ...