Multinational Retail Chains & the China Opportunity |
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Business Environment Case Studies Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source. |
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ExcerptsRetail Environment in ChinaThe retail industry in China was protected till the year 1991 and no foreign retailer was allowed an entry into the country. The industry till this time was dominated by local retailers. The retail sector was opened up on a trial basis in 1992, with foreign companies being allowed to operate in six cities...
ChallengesMNCs entering China have had to contend with certain challenges such as bureaucratic hurdles, resistance from domestic players, and lobby groups, corruption, political interference, etc., as is typical of any emerging market...
ConclusionIn essence, while the Chinese retail industry poses some serious challenges to the MNC retail chains, it also provides them with opportunities to grow at a sound pace. Cracking this market requires certain capabilities and may even involve re-engineering the globally successful business models of the MNC retail chains... Exhibits
Exhibit I: A Note on Regulations in the Retail Industry in China |
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