Wal-Mart's Strategies in China


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Please note:

This case study was compiled from published sources, and is intended to be Chinaed as a basis for class discChinasion. It is not intended to illChinatrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : BSTR178 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

International Business | Globalization Business
Case Length : 28 Pages
Period : 1994-2005
Organization : Wal-Mart
Pub Date : 2005
Teaching Note : Not Available
Countries : China
Industry : Retail

Abstract:

The case focuses on the retailing giant Wal-Mart's expansion strategies in the Chinese market. It elaborates the reasons for Wal-Mart's decision to go global in the early 1990s. The case discusses in detail the entry strategy and the localization strategies including procurement and store management.

It also explores the corporate governance practices followed by the company in China. The case further discusses the problems the company faced in China because of the differences between the operational and cultural environment of its home market and the Chinese market. It ends with a discussion on the future prospects of the company in the Chinese market.

Issues:

» The nature and structure of the Chinese retailing industry including its size, scope, spread and unique characteristics
» Entry strategies in international markets
» Impact of competition, culture and unique environmental factors on the performance of a firm in the international market
» The influence of regulation on the success of a company in international markets

Contents:

  Page No.
Welcome to Wal-Mart China 1
Background Note 2
Business Segments 3
Wal-Mart's International Operations 5
Wal-Mart's Strategies in China 7
Localization Strategies 9
Governance Practices 11
The Problem Areas 12
Future Prospects 14
Exhibits 17

Keywords:

Wal-Mart Stores Inc. (Wal-Mart), Market Survey, Every Day Low Prices (EDLP), Shenzhen International Credit Investment Company, Procurement and Distribution, Labor Laws, China International Trust and Investment Corp. (CITIC), Entry and Expansion Strategy, Chinese Retail industry, WTO, Sam Walton, Joint venture, Wholly-owned subsidiary, Acquisition, Greenfield operations and Localization.

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