Wal Mart

Topics: Supply chain management, China, Supply chain Pages: 2 (582 words) Published: October 17, 2012
4. What must Wal-Mart do to succeed in China? is it on track? As Wal-Mart is the world’s most successful retailer with $350 billion dollars in sales is not used to being in second place. Chinese retail market which is estimated at $1 trillion at 2010 is the biggest challenge to Wal-Mart on these days. That’s why Wal-Mart has to confront three main strategic: Go Global, Go native, and Go up-market. Go Global: Wal-Mart has international stores around the world, with the largest concentration in Mexico (845 stores), Japan (391 stores), The United Kingdom (326 stores), Brazil (296 stores), Canada (279 stores), and also in other countries as Argentina and Puerto Rico but in 2006 the big retailer divested themselves of stores in Germany and South Korea because of the lack of a good market penetration. That is why Wal-Mart needs to have a good market penetration strategy to enter the Chinese market which is the most complex and competitive in the entire world with a lot of other international retailers with a strong presence in the market as Shanghai Brilliance (Bailan), France’s Carrefour and Taiwan’s Trust- Mart. Go Native: Is a fact that Wal-Mart has to adapt to the Chinese market, because that is the key to have success. This means that Wal-Mart has to remodel the “selling way” to the Chinese customer in difference of the U.S. market style, in example the meat and seafood plastic wrapped products is not the “fresh” mean for Chinese people. Their idea to fresh food is that they can pick it out from themselves and watch it wriggle. Go up-market: Wal-Mart needs to be focused on the growing middle class, not on low-income consumers who can’t afford Wal-Mart goods. In The United States the phrase “everyday low prices” is the core business of its business strategy but in Chinese market is different. Because the middle class customer is booming on these days and that results into 200 million households with annual incomes between $3100 to $12500. 5. to what extend can a...
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