Case Analysis: Wal-Mart Stores: „Everyday Low Prices“ in China

Case Analysis: Wal-Mart Stores: „ all(prenominal)day Low Prices in china I. Introduction inwardly less than 30 years, Wal-Mart had transformed from a small rude retailer in Arkansas into the largest retailer in the U.S. In order to continue this rapid growth, the company had started to pursue outside(a) expansion grounded in the belief that the firms business enterprise model of offering quality products at low prices and gigantic customer service would appeal to consumers everywhere around the dry land (p.8)[1]. China was of particular interest in going international as Wal-Marts top management held the opinion that it was the scarce grocery store in which the firms success myth in the U.S. could be repeated (p.2/8). However, in 2005 (nine years afterward its market entry), Wal-Mart was far away from replicating its domestic success story in China. The retailer experienced losses in China and was trailing behind domestic as well as international rivals like Carrefour that featured sales twice as high as Wal-Marts (p.17). II. Analysis of Issues and Problems agree to its poor performance, Wal-Mart was facing the issue how it could compete successfully in the Chinese market. Of particular interest was thereby the question whether Wal-Mart could go bad successful by duplicating its domestic business model.

Beyond, the question how much(prenominal) a model could be effectively implemented in the Chinese market arose. On the one hand, the Chinese market appeared attractive and suitable for Wal-Marts business model with its Every Day Low Prices due to the vast size in land and population, an emerging middle class optimistic and dying(predicate) to spend, and consumers relentless pursuit of value (p.1). Additionally, predicted annual growth judge of eight to ten percent would increase Chinas annual retail sales to US$ 2.4 trillion by 2020, thus making it a major market in the future (p.9). On the other hand, the Chinese market similarly imposed several challenges and hurdles on Wal-Mart which... If you want to pose a full essay, order it on our website: Orderessay

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