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Wal-Mart Stores: Everyday Low Prices in China

Wal-Mart Stores: Everyday Low Prices in China
Wal-Mart Stores: Every Day Low Prices in China

Key Issues

Wal-Mart is currently facing a change to their business in China. Over the past few years China's retail industry and its distribution and logistical infrastructure have opened up significantly with decreased government regulation. For Wal-Mart this will mean a large change in its business strategy and it will now look to profitably expand with China's booming economy. In order to set a new strategy Wal-Mart will need to identify what issues it will face in the short and long term. One such issue is the fact that the business model used in America will not directly transplant to China. For example, in the U.S., Wal-Mart places stores in small towns to gain a competitive advantage. China, on the other hand, will not support such a structure. In China, the economic growth has been concentrated exclusively in coastal regions supporting urbanites.

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Recommendations to Wal-Mart for Business Structure in China
Decline in the governmental regulations in China has provided opportunities to Wal-Mart for increasing its profitability due to booming industry of China. The logistics and distribution infrastructure is now opened for the foreign firms through which they could obtain a significant position in the Chinese economy and can obtain a good amount of profits. For the expansion of business in China, Wal-Mart used the same organizational structure as in US, but it could not be much successful because of the different culture in China from US (Woke, 2011). To achieve the success in Chinese retail industry, Wal-Mart should divide the market as per the unique culture of Chain, which would be significant to adopt the local culture and to be involved with the local community. It will also enable the firm to response the ...

Solution Summary

The expert examines Everyday low prices in China for Wal-Mart Stores.