Business Strategy of Walmart in China Market

Competitive Strategy

Executive Summary
Top executives or senior management are responsible for formulating of various business
strategy that can be used to gain competitive advantages. Management effectively analysis various
external factors that impact on strategy and growth of firm thus find best suitable option that can
contributed in achievements of company goal. This report has discussed about case study of Walmart
in china market and the way management through ineffective strategy have enter into new market to
make optimum utilisation of available opportunities.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Brief summary of the case study..................................................................................................4
Identification of strategic issue ...................................................................................................4
Relevant theories and strategic model to evaluate business strategy of Walmart.......................5
Pestle analysis ............................................................................................................................5
Uppsala model of internationalisation ........................................................................................7
Porter five force Model ...............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is term which means various action, steps and decision that are taken
by an organisation to achieve its respective goals or gained competitive advantages in industry.
Strategies also contribute in effective coordination of various departments and ensure that
department decision needs to support overall direction of firm. Walmart is an American retail
that operates grocery stores, discount department and chain of hypermarket across worldwide to
earn maximum profitability. Company was formally established on 1962, 58 years ago by Sam
Walton to provide several products and services from home, furniture, footwear, health, beauty
to electronic items. This report has discussed on case study of Walmart in china, explained about
key issue and make use of various theoretical concepts and strategy model that have contributed
in growth and success of enterprise in retail sector. Business strategy is one of the aspect which
have been chosen to applies theories of strategy development and implementation.
MAIN BODY
Brief summary of the case study
The above case study explained that globalisation have contributed in better
interconnection between different countries and exchanged of goods and services approximately
$30 trillion. Therefore, most of the manager of the organisations has seen globalisation as an
opportunity to effectively expand and grow its business operation across worldwide. For
example: Walmart by expanding its operating in China have learned about amount of risk
involved in grabbing particular opportunity. Manager of company have misunderstood political,
social, cultural and economic factors that have caused in threat of sustainability of organisation
for longer term (Belton, 2017). So, it can be stated that manager needs to conduct complete
market analysis in order to find existing taste and preferences, economic condition and political
situation of country and adopt strategic to minimise amount of associated risk to certain level.
Identification of strategic issue
From the analysis and discussion of above case study it has been learnt that Walmart
have faced certain issue that have resulted in failure of its store in china market. Company has
faced various political, social and economical issue since it has started its first operation in
Shenzhen in 1996. Such as:
11 The most important issue that have created higher risk and cost to company is that
manager has not deeply analysed or conducted market research of china that have lead to
4