Walmart's Challenges in China

At the time that Walmart entered the china’s market and built the first supercenter and Sam’s club in Shenzhen at 1996, there was a big voice from other competitors and requested the Chinese government did something to stop the development and growth of the Walmart in China, so this was a huge challenge, and all the policies of their company needed to judge by the government and not all of them were accepted, so they could not do the business freely and hindered the development in china.

And also the Chinese culture and the western culture are totally different, so Walmart need to be careful to set their strategies as Chinese have a lot of beliefs although they are now living in an advanced world, and also the festival in china and western countries are different and they need to understand the Chinese culture and set other strategies, but Chinese festivals are not easy to understand because it include some meaning and some special products need to be included, but they are not easy to find out.

As china is a potential market and it has a large purchasing power, there are a lot brands in china both from abroad and local. Other companies catch up, so there is a keen competition in China and may cause the market share of the company decrease.

Walmart has the own business satellite, and its functions is to connect all branches over the world. Using this connection, Walmart can fully understand the sales condition and other business condition of all the branches and they can set the strategies immediately, however, this system cannot connect to the china as china do not open its network to the whole world, so Walmart cannot use their own network to check the condition of branches in china, the competitive advantage is crash.