StudentShare solutions
Triangle menu

Wal-Mart's Growth Plan in China - Case Study Example

Nobody downloaded yet

Extract of sample
Wal-Mart's Growth Plan in China

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. More important than the promise was Wal-Mart's ability to meet this promise every time.
2) Customer is No.1 - Sam Walton, the founder of Wal-Mart ensured that customer was treated respectfully by his employees and provided great customer service. The company came up with Sam's ten rules which became the corner stone of great customer service at Wal-Mart.
3) Small Town Locations - During the initial growth phase, Wal-Mart grew under the competition's radar. They operated in these towns which were considered as unviable by big retailers at that time.
4) Relentless Cost Control - Saving was given as much importance in Wal-Mart as was creating a sale. Wal-Mart relentlessly tried to cut costs to pass on the benefits to the customer.
5) Partnership With Suppliers - Wal-Mart provided big volumes to its suppliers but extracted a lot from them. It was always trying to push them to cut costs. Many processes being followed by suppliers were modified by Wal-Mart in order to reduce costs.
6)Unrivalled Distribution and Logistics Management - The IT infrastructure of Wal-Mart was connected with its suppliers in order to ensure that constant update on inventory requirements reach the customer. It followed Just in time approach and utilized cross docking method to reduce inventory of its stores.

In analysing the Wal-Mart case we have used the long cycle process framework. The case analyses starts with identifying the major issues that Wal-Mart faces and have then gone on to analyse the same and find solutions in the last phase.
Issues faced by Wal-Mart in China.
1) Immediate Issues.
A) Market Segmentation
Large amount of income disparities in China. The coastal regions have very high per capita income of 2117 $ where the inner and western regions have significantly less purchasing power as can be seen ...Show more

Summary

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…
Author : ondrickajustyn
Wal-Marts Growth Plan in China essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Wal-Mart's Growth Plan in China"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Analysing the learning and development strategies of an existing organisation
However, the success of these tools is not guaranteed; adverse market conditions, lack of adequate communication and high resistance to the attempted changes, can lead the plans of organizations to a failure. Still, there are certain strategic tools, which have been proved quite effective in enhancing financial performance.
11 pages (2750 words) Case Study
Wal-Mart
Wal-Mart Case Study 1. What threats and challenges is Wal-Mart currently facing? Wal-Mart Stores Inc. is an American multinational that runs a chain of discount department stores and warehouse stores. It is a powerful retail brand which is operating in 15 countries worldwide and is catering to millions of customers who shop in their stores around the world (Walmart Corporate, 2011).
5 pages (1250 words) Case Study
Wall Mart's Strategic Planning
Walton after returning from his military duty set up a five - and - dime type of store called Walton's Ben Franklin store in Versailles, Missouri in late 1940s. When he lost his lease in 1950 moved his business to Bentonville, Arkansas where he opened a Walton 5 & 10 stores.
6 pages (1500 words) Case Study
International Business Management Case Study
Wal-mart markets itself by a slogan "Save, Live Better" around which the policy of Wal-mart is based i-e offering lowest possible prices to its shoppers. Wal-Mart also operates in Mexico as Walmex, in the UK as Asda, and in Japan as Seiyu. It has wholly owned operations in Argentina, Brazil, Canada, and Puerto Rico (The Wal-Mart Effect, 2006).
12 pages (3000 words) Case Study
Wal-Mart: The High Cost of Low Price
It also retails products through its online site. The company is headquartered in Bentonville, Arkansas and employs 1,800,000 people. The company recorded revenues of $315,654 million during the fiscal year ended January 2006, an increase of 9.6% over 2005.
9 pages (2250 words) Case Study
Wal Mart Corporation
In the retail and grocery market, Walmart's market share hovers around 20% in the United States and it claims a 45% market share in the retail toy business. Wal-Mart Stores was founded by Sam Walton in 1962,incorporated in 1969 and listed on the New York Stock Exchange in 1972.Sam Walton had set up a variety store in Bentoville,Arkannas which he called "Walton's Five and Dime", the store offered lower prices than it's competitors and registered higher sales volumes than them.
2 pages (500 words) Case Study
Wal-Mart
(Wal-Mart) On October 31, 1969 Wal-Mart was established as a corporation under the name Wal-Mart Stores, Inc. Very soon after in 1970, this was followed by the opening of Wal-Mart's business headquarters in Bentonville, Arkansas and the opening Wal-Mart's very first distribution center.
4 pages (1000 words) Case Study
Wal-Mart's Human Resource Management
Wal-Mart, being one of the most sophisticated companies in the world, has put a premium on learning in virtually almost every aspect of their employees. For example, trainees receive detailed training and on-the-job experience, specifically designed to develop individual stores and club management in the future (Sharing our Story, 2006, p.6).
2 pages (500 words) Case Study
Wal-Mart
Wal-Mart was forcing its employees to work during their lunch breaks and after the shift was over without compensating the workers. The action was unethical, inhumane, and
2 pages (500 words) Case Study
Wal-Mart
The firm has carried out several unethical practices, which have inflicted harms on their stakeholder but instead provides them with
4 pages (1000 words) Case Study
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment
Contact Us