Walmart and Government in China
Government and Walmart
When Walmart decided to expand into China, a countless number of hurdles stood in its place. They knew that the store model that has made them the number one retailer in the world was not going to work within Chinese culture, but just how much different would they have to be from the cookie-cutter stores that are found all across the United States? In order to dominate the retail market in China as successfully as they have in other markets across the world, dynamic change and the ability and willingness to work with the Chinese government would be crucial to their success in China. Faced with the strict rules and regulations that would hamper their growth and general operations, Walmart had to find a way to make and keep China and her people happy. Along with all the excitement, pomp, and circumstance that Walmart would bring into China, certain blemishes would follow as well. Low wages, discrimination, and utter dominance over an area it occupies left many questions as to whether Walmart would be accepted or rejected. But the first stumbling block that Walmart would have to face upon entering China would be one of its most challenging: The Government of the People’s Republic of China (Naughton). Upon entering any foreign market, one of the biggest problems facing Walmart and its expansion is government regulation and government worry over the massive company’s monopolization and impact on local markets. Moving into China, Walmart was going to have to assure the Chinese government that they were there to give the Chinese people a better retail alternative, provide abundant employment, and help China’s economy by establishing healthy competition, all while providing the Chinese people with an increased range of products and increased product quality available at the lowest possible prices (Huffman). Walmart in the United States is a very powerful company. In other countries, however, they are not viewed the same. This became very clear
When Walmart decided to expand into China, a countless number of hurdles stood in its place. They knew that the store model that has made them the number one retailer in the world was not going to work within Chinese culture, but just how much different would they have to be from the cookie-cutter stores that are found all across the United States? In order to dominate the retail market in China as successfully as they have in other markets across the world, dynamic change and the ability and willingness to work with the Chinese government would be crucial to their success in China. Faced with the strict rules and regulations that would hamper their growth and general operations, Walmart had to find a way to make and keep China and her people happy. Along with all the excitement, pomp, and circumstance that Walmart would bring into China, certain blemishes would follow as well. Low wages, discrimination, and utter dominance over an area it occupies left many questions as to whether Walmart would be accepted or rejected. But the first stumbling block that Walmart would have to face upon entering China would be one of its most challenging: The Government of the People’s Republic of China (Naughton). Upon entering any foreign market, one of the biggest problems facing Walmart and its expansion is government regulation and government worry over the massive company’s monopolization and impact on local markets. Moving into China, Walmart was going to have to assure the Chinese government that they were there to give the Chinese people a better retail alternative, provide abundant employment, and help China’s economy by establishing healthy competition, all while providing the Chinese people with an increased range of products and increased product quality available at the lowest possible prices (Huffman). Walmart in the United States is a very powerful company. In other countries, however, they are not viewed the same. This became very clear