Wal-mart and Competitors Essay

Submitted By lougonza
Words: 538
Pages: 3

Case Analysis #1
Walmart has had a slow process of creating business in China, due to encountering a numerous amount of problems with the country. The company was stalled by Chinese business regulators which were made up of bureaucracies, which resulted into the company to move slowly. Whereas their high competitors were bending their rules and using it to their advantage and progressing at a faster pace than Walmart, which lead to their competitors to secure a place in the world’s largest consumer market. Walmart has had to adjust their business models so that it would fit the Chinese consumer culture, due to the faced problems with logistical difficulties and regulatory obstacles. Personally I would rate the attractiveness of the retail environment in China as moderate right now, however I do believe that it could increase through time. Due to having a slow start in the business market in China, they have had many other competitors come in and establish their stores throughout the country, making it harder for Walmart to attract Chinese consumers. In the other hand I believe that following the rules in their host city and doing things the right way would soon turn to their favor. Adjusting their strategies in China would soon make it clearer to citizens what Walmart is trying to do, where U.S. consumers have already been accustomed to, which is “everyday low prices”. Although the threat of new entrants is low, I believe it is low due to the entrance of other competitors in china, I firmly believe that Walmart will be able to dominate their market by giving areas more for less than the competing companies. Walmart has been successful using the Five Forces to their greater advantage when it comes to the store’s successes, therefore I believe that they will be able to adjust and have a bright future in China. One of the major problems that Walmart was undergoing was adjusting and fitting into the Chinese consumer market. Walmart has had great successes in the United States by targeting their stores to be put into smaller communities, rather than