STUDY CASE PART 2

1. Which market strategy is Walmart primarily using to enter foreign markets, and why has management chosen this approach?

Walmart’s international stores operate under a different banner, reflecting the web of acquisitions and joint ventures for Walmart uses to enter foreign markets.

The selection of merchandise offered in China supercenter is oriented to the unique tastes of Walmart’s 7 million weekly Chinese shoppers and a handwash laundry which is sold due to the scarcity of washing machines in China.

In 1993, Walmart launch their business globally and targeted the emeging market such as China so that it is easier for Walmart to expand its operation faster.

Moreover, Walmart entry to China was also possible by the economic reforms that introduced in late 1980s under Chinese leader, Deng Xiao Ping. This communist-led government era make a modest concessions to capitalism and Western-businesses.

 There were also some celebrities who have achieved Western-style fame and lucrative sponsorships with American Businesses such as Jackie Chan, Karate Kid martial-arts actor, pro basketball star, Yao Ming and many more.

                     

                                                      

2. What challenges do Walmart China managers encounter in the international business environment?

Walmart faced adventure when rollout teams built a supercenter in Shenzhen, a city just North of Hong Kong which become Walmart’s greatest competitor at China.

They also faced problem in running a multinational operation in an ethical and sustainable way. For examples, in 2010, Google exited China overthe country’s strict censorship policy and poor record on human rights. Years before, The Gap caused a firestorm of critism by unintentionally sourcing products made by child laborers in India.

So Walmart learning the mistakes done by other company and managers at Walmart have developed a a program to ensure the ethical procurements of goods.

Executives of Walmart also say that policing at workplace and ecological footprints of thousands of international vendors may be herculean task but however it is really a necessary one.

                                                              

3. Which of the Walmart’s sustainability initiatives do you believe will have greatest impact on China? Explain.

Walmart hold on a primary objective which is “save people money andt hey can live a little better”. Their intention in every market where they not only to deliver products at a great value, but also to ensure all of the products they sell are made in an ethical and sustainable way.

Walmart have developed an Ethical Standards Program to audit suupliers and ensure the ethical procurement of goods. The program is in place to do what is right for factory workers and the environment. This will not only bring sustainable and positive change to working conditiom, it will also help to build ladders to a better life.