Although Wal-Mart, the world's largest company by revenue, was into its ninth year of operations in China, its stores were still losing money. It created a miracle in the US retail industry by revolutionising the sector's business model and successfully implementing its model through innovative practices that enabled it to sell national brands at "Every Day Low Prices". The challenge Wal-Mart faced was whether it could transport its successful model to win a market with many differing characteristics which threatened its low cost structure and which could nullify its competitive advantage. This is a management strategy case primarily concerned with the application of established domestic business models in international expansion. It also sheds light on other globalisation issues such as market entry strategy, localisation vs. standardisation, the effect of regulation changes on the competitive landscape and firm performance.
Sources of competitive advantage, cost leadership, international expansion strategies with a focus on standardization and localization. Wal-Mart, China, multinational, retail, supermarket, consumer behaviour, competitive advantage, cost leadership, international expansion strategy, standardization, localization, Walmart.