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Case Title:

The Great 'Wal' of China: Strong Enough?

Publication Year : 2005

Authors: Krishnakumar

Industry: Retailing

Region:China

Case Code: CCA0040C

Teaching Note: Available

Structured Assignment: Available

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Abstract:

Wal-Mart, the Bentonville, Arkansas based US Corporation expanded into China in 1996. On entry Wal-Mart not only faced intense competition from other foreign retailers such as Carrefour and Metro, but also from domestic players like China Resources Enterprise, Hualian and the Bailian Group. Even while making the Chinese adapt to American kind of stores, Wal-Mart built a strong vendor base localizing most of its offerings. Wal-Mart also extended its low pricing strategy to China

The case while detailing the expansion of Wal-Mart to China provides a scope for discussion on the strategies adopted by it and its rivals in the competitive Chinese retail industry. The case also discusses the challenges faced by Wal-Mart

Pedagogical Objectives:

  • Analyse Wal-Mart’s strategy vis-à-vis local retailers in China
  • Understand the initiatives taken by Wal-Mart to tackle competition and generate business volumes for compounded growth

Keywords :  Wal-Mart; China; Retail Industry; Logistics; Core Competency & Competitive Advantage Case Study; Sourcing; Infrastructure; Competitive Advantage; Market Environment; Carrefour; Metro; US Model; Globalisation; Localisation WTO; Shenzhen

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