Walmart strategy in China - Research Paper Example

Walmart Strategy in China Walmart Strategy in China Firms that attempt to enlarge their home market base t foreign countries have toadapt their operations to fit in the peculiarities and preferences of each local market. In reference to examination from different economist from China, proceedings regarding Walmart market have been difficult all through. However, China is not the first nation to experience difficulties in implementing Walmart market. Other nations that have been in the sector are Germany band Korea.

Nevertheless, the phenomenon has been resulting to an efficient running in USA because of the following factors. These include cost controls, aiming at neglected niche, employees, suppliers, and distribution system among others (St-Maurice, Claudia, and Hsinhsin, 2008).In reference to Mr. Chan an economist in China, a greater number of businesses emphasis on fresh foods selection, thus visit a Walmart at most twice a day. He also argues that an upscale retailer in the country contrasts with the budget conscious reflection, thus developing at an exceptionally high rate.

This is the strategy behind its success in USA (St-Maurice, Claudia, and Hsinhsin, 2008).On the other hand, Caffefour refers to international hyper chains located in Courcouronnes. This is in France. They are the largest hypermarkets in the world. The structure of these stores favors areas with high population than Walmart markets. This is an evident that China will suit the Carrefour strategy. In reference to the SWOT analysis, factors favoring the prosperity of Caffefour companies are more than those favoring Walmart.

In reference to China’s politics, there is a sustainable environment, meaning that threats are minimal. However, the two strategies have different strengths, weaknesses, and opportunities. China being the nation with the highest population favors hypermarket as consumers will get attendance under one roof (St-Maurice, Claudia, and Hsinhsin, 2008). ReferencesIan St-Maurice, I., Claudia, S. and Hsinhsin T. (2008). What’s new with the Chinese consumer. The McKinsey Quarterly.