Wal-Mart Stores: Every Day Low Prices in China
Key Issues
Wal-Mart is currently facing a change to their business in China. Over the past few years China's retail industry and its distribution and logistical infrastructure have opened up significantly with decreased government regulation. For Wal-Mart this will mean a large change in its business strategy and it will now look to profitably expand with China's booming economy. In order to set a new strategy Wal-Mart will need to identify what issues it will face in the short and long term. One such issue is the fact that the business model used in America will not directly transplant to China. For example, in the U.S., Wal-Mart places stores in small towns to gain a competitive advantage. China, on the other hand, will not support such a structure. In China, the economic growth has been concentrated exclusively in coastal regions supporting urbanites.