Abstract

The case focuses on the retailing giant Wal-Mart's expansion strategies in the Chinese market. It elaborates the reasons for Wal-Mart's decision to go global in the early 1990s. The case discusses in detail the entry strategy and the localization strategies including procurement and store management. It also explores the corporate governance practices followed by the company in China. The case further discusses the problems the company faced in China because of the differences between the operational and cultural environment of its home market and the Chinese market. It ends with a discussion on the future prospects of the company in the Chinese market.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Entry strategies in international markets
• Impact of competition, culture and unique environmental factors on the performance of a firm in the international market
• The influence of regulation on the success of a company in international markets.

Keywords

Wal-Mart Stores Inc. (Wal-Mart), Market Survey, Every Day Low Prices (EDLP), Shenzhen International Credit Investment Company, Procurement and Distribution, Labor Laws, China International Trust and Investment Corp. (CITIC), Entry and Expansion Strategy, Chinese Retail industry, WTO, Sam Walton, Joint venture, Wholly-owned subsidiary, Acquisition, Greenfield operations and Localization