Wal Mart Stores Everyday Low Prices in China Case Solution

Case ID: HKU590
Solution ID: 8601

Words: 728

Price: $45

Case Solution

In China, the world’s leading company Walmart was in a loss. It was the 9th year since Walmart had initiated operations in China. The company was a phenomenon in the retail industry of the US. It had transformed the industry’s model and implemented its business model which enabled it to offer low retail prices. The challenge was the implementation of the same model to other countries successfully. The Chinese market threatened Walmart’s low-price model which left Walmart with no significant competitive advantage. The company is troubled about the implementation of the Walmart model in the international market. The case also discusses the globalization issues that the companies face including the strategy for an entry into the new market, localized vs standardized strategies, and the competitive landscape

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Questions Covered

1- Should Wal-Mart replicate its domestic model in its original form in China? Why? Can it build the same competitive advantage in China through its successful domestic model?

2- What are some threats specific to the Chinese market that Wal-Mart must be aware of, and consider, to implement a successful strategy leading to strategic advantage?

3- Is Wal-Mart good or evil? Please present arguments supporting each consideration, and synthesize by presenting your own opinion in view of your analysis.

4- What are some industry-specific key or critical success factors (CSFs) associated with the discount retail industry? (Answers are not necessarily in your text, and you need to research the industry).

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