Case study 2 walmart in china

Assignment 2

Principles of Management MGT101

Case Study 2

Walmart in China

Rapid economic growth in China is bringing huge potential revenue to North American and European businesses and many are looking to China as a country in which to expand. Before moving into China, America’s biggest and most successful retailer had to learn its business all over again. ‘China will be as big and as successful a market for Walmart as the United States,’ said a Deutsche Bank retail analyst. However, this will not be easy as China’s retail market is dominated by domestic retailers and other foreign retailers who have gained ground quickly. In world terms, Carrefour is right up there with Tesco as a major multinational retailer. Carrefour, the French supermarket chain, one of Europe’s biggest public limited companies had dominated sales in China. Carrefour has developed close relations with over 400 suppliers locally and has spent a great deal of time researching the local market. It has also worked closely with local government agencies to ensure its entry into the region goes smoothly. The general manager of Central and Western China has announced that the supermarket will open two more stores in Chengdu this year and more in 2011. 

Under these circumstances and domination of Carrefour, success for Walmart is not guaranteed, despite the careful analysis that Walmart did before making the big strategic move into China. 

The company identified its strengths – such as huge economies of scale – and possible weaknesses – such as being seen mainly as a US retailer. It also identified the great opportunities offered by the retail market in China – with the world’s largest population and fastest-growing economy. There were obvious threats to success too – such as Carrefour’s expansion plans. 

The management then focused their attention on the wider issues that would be important in China. These included political and legal differences with the USA, economic factors such as the yuan exchange rate, social and cultural factors that could determine demand for certain goods and the impact of technological change on retailing practices and consumer buying habits. 

Despite all of this strategic analysis, according to Strategic Resource Group, ‘Walmart is being outmanoeuvred by Carrefour because its executives have taken too long to understand the Chinese market and add stores.’ Perhaps one of the problems for retailers, even giant ones such as Walmart, is the possible lack of a core competence, other than substantial economies of scale that could allow them to differentiate what they offer to retail consumers. 

Questions:

Q1. Why do you think it is important to analyse the existing strengths and weaknesses of a business before taking strategic decisions?

Q2 Explain, from Walmart’s point of view, the strengths, weaknesses, opportunities and threats in the case of its expansion in China.

Q3 Explain why it would be important to consider the major differences between China and the USA before going ahead with this expansion.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We ensure that all instructions are followed meticulously to deliver exactly what you need. You can select your academic level— high school, college/university, or professional— and we will match you with a writer who holds the relevant degree for your task.

Professional and Experienced Academic Writers

Our team of professional writers brings extensive experience in both academic and business writing. Many of our writers are native speakers, ensuring high-quality work for any task you need assistance with.

Free Unlimited Revisions

If you feel something is missing, don’t worry—send your order for a free revision! You have 10 days to request a review after receiving your final document. Simply log into your personal account or contact our support team to initiate the revision process. We’re committed to ensuring your complete satisfaction!

Prompt Delivery and 100% Money-Back-Guarantee

We are committed to delivering all papers on time. Should we require additional time to ensure your paper meets the highest standards, we will reach out to discuss a deadline extension. If an extension is not possible, we offer a 100% refund guarantee to ensure your satisfaction.

Original & Confidential

We utilize advanced writing tools to ensure that every document you receive is free from plagiarism and AI-generated content. Our expert editors meticulously review all citations and references within the text for accuracy. Additionally, we guarantee the highest level of confidentiality with all of our services, ensuring your privacy is always protected.

24/7 Customer Support

Our support agents are available 24/7, dedicated to providing you with the best customer experience. Feel free to reach out anytime you need assistance—we’re here to help!

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Choose peace of mind. Choose Superior Custom Writers—your trusted partner for stress-free academic success!

Essays

Essay Writing Service

No matter the type of academic paper you need or how urgent the deadline, we’ve got you covered! Choose your academic level and paper type, all at an affordable price. Our dedicated team handles all your paper needs while providing round-the-clock, 24/7 customer support for a seamless experience.

Admissions

Admission Essays Help

An admission essay is a critical component of your application, serving as a personal statement highlighting your unique qualities and aspirations for college, university, or graduate school. Our professional writing service,crafts an exceptional, compelling, and tailored admission essay that showcases your strengths and leaves a lasting impression. Let us help you stand out and secure your spot at your dream institution!

Reviews

Editing Support

Our team of expert academic writers and editors ensures your paper is thoroughly polished. We meticulously revise and refine your work, ensuring clarity and coherence. Additionally, we format your document according to your preferred style, including accurate citations and reference lists in APA, Harvard, MLA, Chicago, or Turabian formats.

Reviews

Revision Support

If you feel your paper could be improved, simply request a review. We will have the writer or an editor review your paper to ensure it meets your expectations. You can use this option as many times as needed, at no additional cost, because your satisfaction is our priority. We’re committed to delivering the best possible service, every time.