Successful International Retail Strategy

Global business is a common practice among modern enterprises as they realize that there is tremendous potential in a country such as China. However, most businesses fail upon entry to these markets because of a lack of understanding of the consumer behaviors of the people. This essay shall focus on the entry strategies that were used by Walmart in China with a focus on the entry strategy process in International Marketing 16th Edition.

Strategies used and their Effectiveness

Preliminary Analysis and Screening

The challenges that Walmart has experienced in entering the Chinese market provided it with a preliminary analysis and screening of the market that helped the company to match the business and country needs (Cateora, 2016). Walmart struggled to establish the proper product mix to provide to in the 25 provinces and 117 cities it was present rendering it difficult to sell a chief variety of products nationwide. Consumers in China were diverse in their needs from city to city.

Moreover, the firm was having tumultuous relations with national and local politicians. There is an instance where the company was fined because it was in violation of national and local regulations leading to the temporary closing of its stores. Although Walmart alleged that the fines were unsubstantiated, it paid the fines. These experiences were useful in assisting the enterprise to devise a better marketing plan, and this paid off in the long-term because the company is currently enjoying huge success in China.

Adapting Marketing Mix to Target Markets

With regards to ensuring low prices for its products, Walmart was thorough, and this goes against the conventional theory that first-class quality implies higher prices.