walmart case Essay

Submitted By dt8544
Words: 396
Pages: 2

CASE 1 Walmart has imported more than 70% of their merchandise from China and they are becoming one of the major retail companies rapidly. One of the main US grocery and discount retailer Wal-Mart has spent 17 years to be perfect their business model in China. At the first time when they got into Chinese market, they had some problem because Chinese market was complicated. However, they designed to meet what people needed in the new Chinese market. While they were researching and gathering all of information in China, They tried to fix what unmatched convenience and cultural differences between U.S. and China. They also opened the Wal-Mart’s Global Sourcing office in 2002. War-mart had contributed about $10.6 billion to their last year gross revenue and it was 15% of previous year. They opened in Shenzhen, China in 1996, but now they have 94 stores in 51 cities, and they have more than 20,000 suppliers to make a lot of items to sell to the billions of customers in China. I think War-Mart has high level of rate the attractiveness of the retail environment in China. They have competitive rivals as Carrefour, Tesco, and many other smaller local shops. They tried to get into the China retailer industry that had foreign general merchandisers or discounters, established Chinese Retailers, and they had planned Asian conglomerates with lower cost structures. For the buyer’s power, they tried to get diversity of ethnic and economic backgrounds and cultural bias for a specific condition of products, delivering in a unique supply chain which is key to China consumers. They also have supplier’s power which is U.S. product manufacturers,