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

Wl-Mrt Expnsion to Chinese mrket - Assignment Example The 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 PEST 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 Chin's 46 stores tht result 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, you've seen the development of [forml] retil. So it's gret opportunity" (Nelson, 2006). By contrst to the second lrgest supermrket in the world, Crrefour, Wl-Mrt is Chin's 19th-lrgest retiler. Wl-Mrt Chin's SuperCenters lg their U.S. counterprts in revenues, generting on verge $35 million nnully, compred with $80 million to $120 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. SWOT nlysis This 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. Tble1 SWOT nlysis Internl Strengths Weknesses Good loction of stores Trined stuff to operte the stores Estimted rise of revenues Chep lbor costs on Chinese mrket Good service nd employee pckge Very low number of trnsctions on the comprtively lrge territory Shky infrstructure in mny plces Development of rods, wter nd sewge brely keeps up in cities exploding with growth. Externl Opportunities Threts Further expnsion into Chinese mrket Possibilities of high benefits from Chinese mrket Mintining the growth on Chinese mrket Intensive competition from Frnce's Crrefour Competition from locl supermrkets Gtrengths Good loction of stores Wal-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 high-rise prtments, most customers rrive on foot or by bicycle. bout 12,000 shoppers visit this SuperCenter ech dy,