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Walmart China: Challenging Alibaba’s New Retail

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Walmart miscalculated when it entered China using its “Every Day Low Prices” strategy. It struggled with value proposition, local regulations, staff incentive schemes, logistics, and significant economic and cultural differences between regions. After two decades it developed successful operations in China. With Chinese led disruption labelled as “New retail,” that meant full integration between online and offline commerce, Walmart had to ensure its continued success in this new environment.

Learning Objective:

1. To explore the lessons Walmart has learned in over two decades of ups and downs in the Chinese market. 2. To explain how Walmart learned to leverage its partners’ assets when its own strengths turned against it. 3. To discuss the paradox of localization vs. standardization in international expansion and how the two forces may lead to success and failure. 4. To explore how retail business landscape is being shaped by the merger of physical space and digital space. 5. To underline the importance of adaptability of business plans and processes while exploring new territories.

Year of Publication: 2020
Ref. No.: 19/643C
Discipline: Strategy & General Management
Industry: Retail, Retail & Wholesale
Country: China (People's Rep. of)
Languages: English
Pages of Text: 14