Go Global: Wal-Mart has international stores around the world, with the largest concentration in Mexico (845 stores), Japan (391 stores), The United Kingdom (326 stores), Brazil (296 stores), Canada (279 stores), and also in other countries as Argentina and Puerto Rico but in 2006 the big retailer divested themselves of stores in Germany and South Korea because of the lack of a good market penetration.
That is why Wal-Mart needs to have a good market penetration strategy to enter the Chinese market which is the most complex and competitive in the entire world with a lot of other international retailers with a strong presence in the market as Shanghai Brilliance (Bailan), France’s Carrefour and Taiwan’s Trust- Mart. Go Native: Is a fact that Wal-Mart has to adapt to the Chinese market, because that is the key to have success. This means that Wal-Mart has to remodel the “selling way” to the Chinese customer in difference of the U.
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S. market style, in example the meat and seafood plastic wrapped products is not the “fresh” mean for Chinese people. Their idea to fresh food is that they can pick it out from themselves and watch it wriggle. Go up-market: Wal-Mart needs to be focused on the growing middle class, not on low-income consumers who can’t afford Wal-Mart goods. In The United States the phrase “everyday low prices” is the core business of its business strategy but in Chinese market is different.
Because the middle class customer is booming on these days and that results into 200 million households with annual incomes between $3100 to $12500. 5. to what extend can a company like Wal-Mart changes the culture of the nation where it is doing business? One of the world’s biggest retailer as Wall-Mart brings to a new country the way as it works. In example the global sourcing strategies that have Wall-Mart forces to Chinese suppliers the way they work because it dictates to its suppliers how they should make their goods, from product specification to packaging, and how much profit they should take.
But this measure brings to Chinese workers and suppliers discontent to initiate business with the big retailer. Also Wall-Mart has to deal with many problems; one of them is China’s infrastructure that creates many bottlenecks related to roads, ports and so on. Another is attitudinal like many Chinese suppliers have a hard time adjusting to the rigorous standards of modern supply chain management.
Also the labor issues represent a big concern to Wall-Mart, has long been under pressure from the Chinese government to allow branches of the state-run trade union, the All China Federation of Trade Unions, into its stores. In conclusion, a company as Wall-Mart can change the culture where is doing business on many points as the way how it works with the suppliers, native workers and business strategies. It just take time to adjust these ideas and reach its goals improving the supply chain.