Wal-Mart's Expansion Into China

Wal-Mart is one of the world's largest retailers and is expanding its presence in China to increase the profitability of the retail industry. Wal-Mart has opened thousands of stores in the US and is expanding internationally. Along with expansion, Wal-Mart creates opportunities for valued customers around the world. "Today, Wal-Mart operates more than 100,000 retail stores under 71 flags in 27 countries (Inc., 2014)." In addition to 30 stores opened in 2013, Wal-Mart will open 110 stores in China between 2014 and 2016.

International expansion (China): Wal-Mart is very active in penetrating the Chinese market. Furthermore, there is no doubt that the population of China is 3 billion people, occupies the world's largest population, bringing Wal-Mart a big business opportunity. Therefore, Wal-Mart needs a manager who speaks fluent Mandarin and English to truly understand the Chinese culture and the behavior of Chinese customers. Therefore, I can develop more opportunities in the Chinese market and provide my knowledge to Wal-Mart to maximize profit.

In theory, sales of Wal-Mart in China seem to be successful. However, the world's best-performing Wal-Mart has never profited in China, so it can not ignore the fatal problem. For the entire Wal-Mart store in China, sales in the actual business are only 1 billion dollars. Wal-Mart is beginning to be lagging behind the Chinese market. Wal-Mart has shifted to a Chinese strategy that has not been studied since the predicament of six months ago, and half of Wal-Mart's marketing tradition relies so much on the concept of shortage of work.

Companies entering overseas markets have created good opportunities. For Wal - Mart 's venture capital in China, a new overseas market like China may offer new growth opportunities. In addition, considering that China is a low-cost country, Wal-Mart uses global expansion to reduce commodity costs, reduce time to market, improve product quality, Walmartstores, 2010) . The reason why most multinational companies expand their business through other countries is to reduce costs. Basically, this is a good opportunity for multinational companies like Wal-Mart for cheap labor provided by developing countries. Like other multinational corporations, Wal-Mart can reduce costs by sending some or all of its manufacturing facilities abroad. Wal-Mart did not claim to have used the opportunity of global expansion to evade protectionist regulations of importing countries, but it is still the motivation for most multinational companies.