Compare: Carrefour and Wal-mart Essay

Submitted By lingliling
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Xi’an Jiaotong-Liverpool University
西 交 利 物 浦 大 学

Year 1

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English for finance
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• Compare and contrast the strategies of Carrefour and Walmart in the Chinese market
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Monday 24th October 2011 at 20:00
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Aaron Rotsinger

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Compare and contrast the strategies adopted by Wal-Mart and Carrefour in the Chinese market


As the global economy develops, the living standard of the human-beings improves. As the two major retailers in the world, Wal-Mart and Carrefour play an important role in convenience people`s daily life. These two big companies go up to the front row in view of turnover and employment according to the most recent ranking (Enrico, Colla .& Marc, Dupuis. (2002)).The market of these two big retails is the whole world. The international development of Wal-Mart and Carrefour is rapid. China is absolutely a big market since the policy of reformation and opening is carried on. China`s retail market attract the foreign companies. Carrefour and Wal-Mart are the two biggest foreign retailers in China and they all opened their 100th store in 2007(Moreau, Raphael. (2008) ).Besides, the competition between Wal-Mart and Carrefour is exist all the time in the Chinese market. China is a big country and it has diverse population, custom and special policy. There are a lot of challenges for the two retails. Both War-mart and Carrefour have their own strategies in the Chinese market, but they are not in common. The two giant retailers choose different ways to the local culture and have different expansion strategies. Whose strategy is better? According to the presence of the two retails in recent years in china, Carrefour has a favorable balance but Wal-Mart is not that successful. So Carrefour`s strategy seems to be the better one in the Chinese market till now (‘Wal-Mart and Carrefour in China: Whose strategy is better?’(2007)).

Main ideas

As for the Chinese local culture, Wal-Mart and Carrefour have different attitude. Carrefour tries to manage its stores in the light of the local ways while Wal-Mart chooses more American ways. Thanks to the American ways being chosen, Wal-Mart faces more problems in the Chinese market. The major factors that Wal-Mart has had a phenomenal success at the US are cost control, targeting a neglected niche, supplier partnership, distribution system and employees (China Business strategy: Wal-Mart and Chinese Culture (2009) ).Things seem different in china. The Chinese customer is varied. They have different income and