Multinational Retail Chains & the China Opportunity


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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.

Case Details:

Price:

Case Code : BENV018 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Business Environment/ Emerging Markets/Management Issues in China
Case Length : 15 Pages
Period : 2001-2008
Pub Date : 2008
Teaching Note : Not Available
Organization : Carrefour/ Tesco/ Wal-Mart
Industry : Retail
Countries : China

Abstract:

China's huge population, booming economy, and the growing affluence of the consumers have always attracted the multinational companies (MNCs). In the past, China was like an impregnable barrier for these MNCs. However, with the opening up of the economy and introduction of further reforms in the late 1990s and the 2000s, MNCs, cutting across industries, began seriously considering the China opportunity.

After the opening up of the retail industry in 1991 and the introduction of major reforms in the mid-2000s, China has emerged as one of the most attractive retail markets for MNCs.

However, like their peers in other industries, MNC retail chains that have entered the market or are planning to enter the market have had to face a number of challenges, some of which are peculiar to the Chinese market. Cracking the market requires capabilities and commitments that go beyond a simple adaptation of business strategy to suit an international market.

This write-up can be used as a case study for class discussion and also double up as a teaching aid for teaching other China-specific case studies, particularly in the retail industry.

Issues:

Analyze China's retail market, identify the opportunities and challenges, and explore ways in which multinational retail chains can take advantage of the opportunities while mitigating the risks of operating in the market

Compare and contrast strategies adopted by Carrefour, Tesco and Wal-Mart in China, and understand the challenges these retail chains faced in the country

Understand the issues and challenges faced by global companies operating in emerging markets

Understand the critical factors for succeeding in emerging markets, particularly in China

Contents:

  Page No.
Introduction 1
Retail Environment in China 2
A Comparison of Three Leading MNC Grocery Retail Chains 4
Challenges 7
Implications 9
Conclusion 12
Exhibits 13

Keywords:

Strategy, Emerging markets, Globalization, Competition, Entry strategy, Expansion strategy, Localization strategy, Retail, China, Carrefour, Tesco, Wal-Mart

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