Walmarts Marketing Strategy in China - 1002 Words

WAL-MART STORES WITH CHINESE CHARACTERISTICS | Marketing Write-Ups Group 4-No.1 | | WAL-MART STORES WITH CHINESE CHARACTERISTICS Past success will be the future failure. - Ali Farhoomand, Director, Asia Case Research Centre It seems ironical the president of Wal-Mart China, CassianChueng resigned just at the beginning when China’s government fully opened its retail market to foreign retailers in 2005; which was considered to be a declaration of failure to fulfill the retail giant’s expectation in China of Chueng. After one decade of operation in China, Wal-Mart has provided continuous negative returns to the headquarter in the US and was ranked only 20 in the top 25 chain stores in China at the end of 2004 according to†¦show more content†¦One of the key mistakes Wal-Mart made is that they take the consumers in China as in the States. Just to the contrary of the Wal-Mart’s fantasy—not every Chinese washes his or her hair every day. Taking the government into serious consideration It is both the invisible and visible hands are controlling the society of China. The invisible is market itself while the visible being the government. The local protectionism is quite fierce fueled by the GDP competition among provinces and cities, which shall greatly influence Wal-Mart centralized control style. And while the central government may open to foreign retailers to enter into China freely, the local government may provide numerous counter-policies to make it impossible for foreign companies to survive. One country, several markets It must sound peculiar although China has a history of over 5000 years, yet people under the same nationality may not share the same culture as a whole. Trying to stereotype Chinese in a single version is surely biased. And one of the hardest points to understand is the market changes dramatically even the persons involved may not understand themselves. There is a city called Erdos in Inner Mongolia once a small and poor city one decade ago now becomes one of the richest in the country with a nickname of Little Hong Kong. The vast distribution of land, people, and the gap between different social income classes, there are several markets deserve tailored strategies to tackShow MoreRelatedWalmarts Marketing Strategy in China1010 Words   |  5 PagesCHARACTERISTICS | Marketing Write-Ups Group 4-No.1 | | WAL-MART STORES WITH CHINESE CHARACTERISTICS Past success will be the future failure. - Ali Farhoomand, Director, Asia Case Research Centre It seems ironical the president of Wal-Mart China, CassianChueng resigned just at the beginning when China’s government fully opened its retail market to foreign retailers in 2005; which was considered to be a declaration of failure to fulfill the retail giant’s expectation in China of Chueng. After oneRead MoreThe Marketing Mix Of Walmart920 Words   |  4 Pagescountries all over the world. Some of those countries includes; China, United Kingdom, Africa and the United states. Walmart’s strategy is to take over the local retail stores once they enter into an international market. This plan has been effective in almost all of the international markets that Walmart has infiltrated. Walmart employees over two million people in their stores world-wide. The Marketing Mix of Walmart Walmart’s product strategy consist of the retailer selling various products. ConsumersRead MoreWalmart s Strategy Fit The Market Environment920 Words   |  4 Pagesbusiness as joint venture with the largest retailer Cifra S.A. in Mexico. The Walmart’s format proved to be quite successful in Mexico. Followed by year 1994, Walmart entered Canada market by acquisition strategy. In 1996, Walmart penetrate China by opening Sam’s Club and supercenter in Shenzhen, and acquisition of hypermarket chain called Trust-Mart in 2007. Walmart’s implementation of its low price and multi store formats strategy ensure its success in international expansion in these three countriesRead MoreWal Marts Business Level Strategy1478 Words   |  6 Pagesadvantage does Wal-Mart rely upon to execute its business-level strategy in the U.S.? Provide evidence for your answer. Introduction: Walmart one of the largest chain stores has a famous mantra â€Å"Ever Day Low Prices† has been attracting millions of customers around the world with their value chain activities. Walmart has lots of cost advantage and strategies over its competitors. Walmart has been able to execute its business level strategies with lot of success, and efficient policies but when it comesRead MoreEvaluation Of Walmart s Experiences2691 Words   |  11 PagesEvaluation of Walmart’s experiences in China and comparing them to Carrefour’s Rauf Canberk Altinkaya Southern States University Abstract Walmart and Carrefour are giant retailers. They have different perceptions in different markets. This case study focuses on these perceptions. Walmart failed in Chinese market since they lacked of convenient supply chains, adapting to cultural infrastructure of Chinese Market. Carrefour did some stuff better than Walmart. But Chinese market is notRead MoreChina: The Start of a New Era for Wal-Mart Global Expansion1514 Words   |  6 PagesWalMart in China Introduction WalMarts approach to global expansion exemplifies the journey of self-discovery many corporations who have a stable, profitable domestic base of operations go through as they attempt to enter new markets globally. For WalMart this meant confronting the exceptionally high level of ethnocentrism in their organization while also using their analytics-based prowess to better understand cultures, not just costs and profits (Ming-Ling, Donegan, Ganon, Kan, 2011). TheRead MoreWalmart : The Largest Retailer Of The United States Essay1274 Words   |  6 PagesWalmart promoted more than 200,000 job opportunities in the United States (â€Å"Company Facts†, n.d.). According to the Walmart’s annual report, the company has $482.1 billion total revenue by January 2016 (â€Å"Company Facts†, n.d.). The current president and CEO is Doug McMillon (â€Å"Company Facts†, n.d.). Greg Penner is the chairman of the Board of Directors (â€Å"Company Facts†, n.d.). Walmart’s target market is lower to middle income people. These customers demand discounted products and they always shoppingRead MoreDefining Walmarts Internal Business Process Improvements894 Words   |  4 Pagesï » ¿WalMart: Defining Internal Business Process Improvements Introduction The dominance of WalMarts (NYSE:WMT) in discount retailing is a direct result of their business process excellence in the areas of supply chain management (SCM), supply chain optimization (SCO) and logistics management with its suppliers and retailing operations globally. What most differentiates WalMart from the many other discount retailers is their agility and speed of using information for insights and analysis (WalMartRead MoreWalmart in China1534 Words   |  7 PagesWalmart in China Introduction Walmart, founded by Sam Walton in 1962, is the largest retail company in the world. The low cost strategy and hence the â€Å"Every Day Low Prices† (EDLP) strategy allowed Walmart to outperform competitors in the US. Besides having stores in the US, Walmart has also expanded its market worldwide. Walmart’s entry into China was not surprising, given its population and growth potential. Nevertheless, Walmart China had been struggling with its sales volume. It was only rankedRead MoreWalmarts Vision And Strategies1542 Words   |  7 PagesRico, Ghana, China, United Kingdom, India, and others. In order to adequately serve the expanding demand for quality goods at reasonable prices – Walmart has to ensure that its supply-chain functions efficiently on a regular basis. To this end, in what follows, the author explores the manner in which Walmart manages its supply-chain, the impact of the management of the same, and the organisational theory of the company – in the successful pursuit of Walmart s vision and strategies. To commence this