FACTS:

First opened in Shenzhen on August 12, 1996

As of December 2007
94 stores in 51 cities
Employs 43,000+ associates
Serves around 5 million customers per week
Transition from rural US to metro/urban in China
Competitive analysis a core value of the company
Shopping 1,500 items and price matching them through Special Buy Analysis
Major pressure from the Chinese regional governments to centralize in high growth
regions
About-face by Chinese govt. on Shanghai is of interest
Has major implications on Wal-Marts ability to provide infrastructure for stores
Supply Chain Challenges Abound
Tier 1 cities include Beijing Tianjin, Shanghai, Guangzhou
Tier 2 cities include Chengdu, Nanjing, Chongqing, & Wuhan
Tier 3 cities include Changzho, Jinhua, Mianyang
Provincial Regulations:
35 provinces, each with its
own set of regulations &
governing bodies that
provide additional
complexities to MNcs
trying to enter the market

Local Regulations:
Local govt. frequently revise
existing codes without significant
notice, creating problems for
multinational companies that may
not have any ties with local ruling
bodies
National Regulations:
Over-reaching
free-speech , IPR &
importation regulated
heavily






Strength
Wal-Mart is a powerful retail brand. It has a reputation for value for money,
convenience and a wide range of products all in one store.
The company has a core competence involving its use of information technology
to support its international logistics system.
Wal-Mart has a lot of suppliers, since the company claimed that it had always
treated its supplier as partners and also helps suppliers improve inventory
management and efficiency.
Wal-Mart has a competitive strategy. For example everyday low prices (EDLP) or
Always Low prices, this helped to drive the concept of EDLP and drew a million
customers to its door.
Weakness
The biggest obstacle Wal-Mart faced in Mainland China was lack of an
information-technology network with suppliers making the purchase and
distribution difficult.
Opportunities
To take over, merge with, or form strategic alliances with other global retailers,
focusing on specific markets such as Europe or the Greater China Region.
The stores are currently only trade in a relatively small number of countries.
Therefore there are tremendous opportunities for future business in expanding
consumer markets.
New locations and store types offer Wal-Mart opportunities to exploit market
development. They diversified from large super centres, to local and mall-based
sites.
Opportunities exist for Wal-Mart to continue with its current strategy of large,
super centres.
Threat
Very high competition in china market, especially the local brand.
The Buying behavior of Chinese consumers, Chinese consumers always compare
the different of the price before they make a purchase.
Regulatory restrictions, in china the constraints on a foreign retailers operation
directly limited the regional expansion of Wal-Mart stores and the efficient use of
distribution centers.
Local protectionism, it is serious problem faced by many multinational firms
trying to expand operations through china.
The Infrastructural Deficiency, Wal-Mart distribution system depended on
transportation, but china transportation were no well connected and were
serious fragmented.
Walmart-EDLP-China