Walmart in China Case Study Report

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Outline

1.0 Introduction

1.1 Statement of the problem

1.2 Purpose of the report

2.0 Analysis

2.1 Political and legal factors         

2.2 Economic factors

2.3 Social factors

2.4 Technological factors

2.5 Competition structure

2.6 SWOT Analysis

2.7 Customer analysis

2.8 Market segmentation and positioning

2.9 Marketing mix strategies

3.0 Alternative solutions

3.1 Investing in consumer market research

3.2 Investing in e-commerce

3.3 Retuning the strategic positioning strategy

3.4 Investing in eco-friendly products and promotion of consumer safety

4.0 Recommendations

1.0 Introduction

Wal-Mart has undergone remarkable growth through the implementation of the international market expansion strategy. Some of the markets in which the firm has experienced optimal performance include Brazil and Mexico. The international market expansion strategy has increased Wal-Mart’s capacity to generate sales revenue.One of the markets that Wal-Mart has identified critical to its future sustainability includes China.

1.1 Statement of the problem

Despite its commitment to global market expansion, Wal-Mart has not succeeded in all its target international markets. One of the markets that have proved challenging to Wal-Mart’s revenue generation strategy includes China. Wal-Mart’s motivation to enter the Chinese market arose from identification of the prevailing market opportunity.Successful exploitation of the available market opportunity in China can contribute to remarkable improvement in the company’s long-term sustainability.

Wal-Mart intends to strengthen its market performance in China through the implementation of the ‘every day low price’ strategy. This strategy has remarkably improved Wal-Mart’s performance in other emerging markets such as Brazil and Mexico. However, the strategy has proved ineffective in fostering the firm’s market dominance. The limitation of the strategy in the Chinese market has arisen from the complexity associated with the Chinese retail industry. One of the core factors that have contributed to the company’s poor performance entails the influence of different market forces such as an increase in the intensity of competition. Despite the firm being in operation in the Chinese market for over a decade, the low pricing strategy has not contributed to significant improvement in the firm’s capacity to generate value for the company.