Walmart's Global Sourcing Implementation Plan In China Case Analysis

The following assessment is focused on Wal-Mart’s global sourcing strategy implementation plan in China. The entry into China has not allowed Walmart to capitalize on its business model and the company has made many mistakes in their entry. An analysis of the company’s failures will be conducted. Next a description of sourcing and logistic retail strategies for operations in China will be made. The political, legal and business environment for Western Business will be looked at. Lastly, a recommendation for other countries in a global sourcing implementation plan will be made for operating in China.
Analysis of Walmart’s Global Expansion Failures to Promote Future Success
Per the Trefis Team (2014), Wal-Mart has had problems with expanding
…show more content…
This has caused the company to be unable to use their biggest strength; and ultra-efficient and technologically advanced supply chain (Salomon, 2016).
Description of Walmart’s Sourcing and Logistics Strategies for Operations in China
Wal-Mart 's low pricing strategy was not as well received as the company believed it would be in China. The Trefis Team (2012) argues that Chinese buyers are more concerned about the authenticity and quality of products over price. The Wal-Mart "Every Day Low Prices" has been deemed as cheap and unsafe in China. Walmart is looking to improve store productivity to improve logistic strategies in China. That is why the Company is looking to close under-performing stores and focus on stores that will increase the region 's sales (Trefis Team, 2012).
Wal-Mart has focused on sourcing products from local producers and suppliers to appeal to Chinese Consumers (Salomon, 2016). Wal-Marts logistic strategy has been to source local because Chinese infrastructure lacks in development. This lack in development does not allow Walmart to use an effective Supply Chain
…show more content…
Per Salomon (2016), China has economic, cultural and political obstacles for Western companies. The economic obstacle in China is that the country 's development of its economic institutions and infrastructure has lagged that of the West. This has caused the company to be unable to use their biggest asset, an ultra-efficient and technically advanced supply chain. Cultural obstacles include the local consumer tastes that Chinese

Related Documents