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Case Code: BSTR495
Case Length: 13 Pages 
Period: 1996-2015  
Pub Date: 2016
Teaching Note: Available
Price:Rs.600
Organization : Wal-Mart
Industry : Retail
Countries : China
Themes:  Globalization/Strategy
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

World’s Largest Retailer in the World’s Most Populous Country: Wal-Mart in China

 
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EXCERPTS

 

LUCRATIVE MARKET OF CHINA

The growth of China’s retail sector had been one of the most spectacular economic marvels of the new millennium. From 1990s, in almost 30 years, China had witnessed vast economic reforms and emerged as a major exporting country while experiencing an unprecedented urbanization. These factors led to the country attaining an admirable position globally in terms of Gross National Income (GNI) per capita which had expanded 13 times in last two decades..

 

 
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WAL-MART IN CHINA

Wal-Mart entered China in 1996. The groundwork to enter the country started in 1994, when a team of executives from the company went to China to understand the market. The first store was opened in Shenzhen. In partnership with Shenzhen International Credit Investment Company, Wal-Mart opened Supercenter and Sam’s Club in the country...

WAL-MART’S STRUGGLE IN CHINA

Like many other international retailers, Wal-Mart, had been finding it tough to survive in China with handsome profits margins........

WAL-MART’S STRATEGY ADJUSTMENT
 

As of 2015, the number of Wal-Mart stores in China was considered fairly small, given the country’s massive retail sector...

CHINA - A TOUGH MARKET FOR FOREIGN PLAYERS?
 

Analysts and industry experts believed that China was a tough market for foreign players, especially retailers. In China, retailers were burdened with more responsibility than in any other country for the products they offered. For example, in the US and many other countries, it was the primary responsibility of the manufacturers to ensure the quality of the products which their retailers sold...

ROAD AHEAD
 

With China proving to be a tough market for international retailers, many such companies had either scaled back or quit the market altogether. However, Wal-Mart had no immediate plans to exit this market believing as it did that it would be successful in the country in the coming years...

EXHIBITS
 

Exhibit I (A):Business Formats under Wal-Mart China

Exhibit I (B): Wal-Mart Stores in China*

Exhibit II : Number of Wal-Mart Stores in China*

Exhibit III: Wal-Mart China’s Sales Revenue (in US$ Billions)

Exhibit IV : Alleged infractions on Wal-Mart China

Exhibit V : Wal-Mart Stores in China*