In this updated case on Wal Mart, the worldwide largest retailer, the organization stays actively committed to rolling out and refining its Every Day Low Cost ("EDLP") strategy across China, while making smaller, yet important strides to be locally applicable to the Chinese consumers. As recently as April 2012 -CEO Scott Price shared his enthusiasm about Wal Mart's growth and expansion in China. Yet, merely a few brief months after, by mid-summer 2012 (although not captured in this instance), the business announced it would cool the rate of its own expansions in China. Michael Duke (Wal Mart's president and CEO) and other company executives cited a persistently difficult economical climate in the United States and abroad, problem procuring real estate on the mainland to allow for better laid-out stores, along with a yearning to sharpen its EDLP strategy as the reason for the evident pullback.
This instance uncovers issues that, to some foreign retailers, might be unsolvable, compelling an exit or, as was recently declared, a slow down. At precisely the same time, the case data suggests that Wal-Mart will do whatever it must to predominate in China, among the largest marketplaces on the planet. Key discussions will appear on whether the sheer tenacity of Walmart to stay and flourish in China will overcome the apparently endless problems with local governments, badly managed shop employees, high turnover of the company's and challenges with less-than- shop formats that are perfect. This case is an update of the initial case entitled "Wal Mart in China-Every Day Low Cost", printed in 2005 by the Asia Case Research Centre. This updated case, in contrast to the first, addresses how Walmart's American model for doing business in China has expanded into a more culturally sensitive, two-pronged strategy.
Wal-Mart in China 2012 Case Study Solution
PUBLICATION DATE: October 10, 2012 PRODUCT #: HKU984-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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