International Business: Wal-Mart in China

Running head : INTERNATIONAL BUSINESS : WAL-MART IN CHINA

International Business : Wal-Mart in China

Joey Friedman

School

Professor

Course

International Business : Wal-Mart in China

The expansion of Wal-Mart in China was influenced by the market indicators and sociocultral forces screening . In the market indicators China 's market size , growth rate and e-commerce readiness were taken into consideration . According to the former CEO of Wal-Mart , China is the one place in the world where you could replicate Wal-Mart 's success in the US ' In China , there are over 100 cities with

br populations of more than a million ' The average annual income of the over 150 million urban Chinese families reaches up to 10 , 000 annually This number results to a 6 trillion worth of retail spending yearly with annual growth of 15 . More so , since China is opening up to the world market , Wal-Mart had seized the opportunity to invest in a market that is big and booming (Chandler , 2005 ,

.83

For sociocultural factors , Wal-Mart had capitalized on the Chinese culture and society . Wal-Mart had taken into consideration the needs and wants of the local market . They sold merchandise to fit the way of life of the Chinese . More exotic products were marketed such as stinky tofu and spicy chicken fee in Wal-Mart stores . Also , they introduced the retail-entertainment ' wherein retail stores allotted space for the local school groups to perform ' Through this innovative marketing they were able to lure many Chinese to go inside the Wal-Mart stores and enjoy the wide...