Wl-Mrt Expnsion to Chinese mrket Assignment Example | Topics and Well Written Essays - 3500 words

Wl-Mrt Expnsion to Chinese mrket - Assignment ExampleThe choice of the mrket entry will depend on mny fctors such s politicl, economic, technologicl, nd socio-culturl. With this in mind, the reserch discusses ech of those fctors while conducting plague nlysis.Expnsion to Chin is gret opportunity for Wl-Mrt to gin profits nd dditionl mrket shre on the world mrket of retil. Opertion in Chin brings $1 billion in sles nnully. It is through Wl-Mrt Chins 46 stores tht resolving power in 450,000 trnsctions dy tht such high profit is possible (Hoopes, 2006).Expnsion into Chin is n opportunity tht Wl-Mrt cn not fford to miss. Chinese mrket is one of the biggest in the world nd the need to expnd beyond its 46 stores is logicl strtegic step the Wl-Mrt should undertke. Strong competition with Crrefour, the biggest retil in Frnce nd second biggest retil store in the world, is thret for the compny to stop being the first on the mrket. The need to expnd to Chin is wy to sty the leder in the world mrket s it hs been for long time of the retil store history.Wl-Mrt is excited bout Chin becuse it considers the size of the economy of this country, t the consistent growth over 20 yers, nd t the increse in individul nd fmily income nd spending power. s Beth Keck, Wl-Mrt director of interntionl corporte ffirs, sid in n interview. In the lst 10 yers, youve seen the development of forml retil. So its gret opportunity (Nelson, 2006).By contrst to the second lrgest supermrket in the world, Crrefour, Wl-Mrt is Chins 19th-lrgest retiler. Wl-Mrt Chins SuperCenters lg their U.S. counterprts in revenues, generting on verge $35 million nnully, compred with $80 million to $ cxx million in the U.S. So there re lot of opportunities to expnd to Chinese mrket, more of which will be discussed lter in this pper long with mrketing nlysis of the compny (Hoopes, 2006).II. jam nlysisThis nlysis is wy of looking t the Wl-Mrt s business, where the strengths nd weknesses of the orgnistion cn be contrsted with the threts nd opportunities of the outside business environment. The identifiction of the mjority of the SWOT fctors re intended to be derived through the erlier use of PEST nlysis s prt of the overll situtionl nlysis process.Tble1SWOT nlysisInternlStrengthsWeknesses wakeless loction of stores Trined stuff to operte the storesEstimted rise of revenuesChep lbor costs on Chinese mrketGood service nd employee pckgeVery low number of trnsctions on the comprtively lrge territory Shky infrstructure in mny plcesDevelopment of rods, wter nd sewge brely keeps up in cities exploding with growth.ExternlOpportunitiesThretsFurther expnsion into Chinese mrket Possibilities of high benefits from Chinese mrketMintining the growth on Chinese mrketIntensive competition from Frnces CrrefourCompetition from locl supermrketsGtrengths Good loction of storesWal-Mart China has a very good location t 12 Fenghung Rod which is in the hert of Shenzhen, Chin. Here people come just for a walk, a meeting at the corner restaurant or to see a movie in the cinema located not far. In this neighborhood of storied prtments, most customers rrive on foot or by bicycle. bout 12,000 shoppers visit this SuperCenter ech dy,