Back to search

Wal-Mart in Asia

By Neil Jones,  Philippe Lasserre,  Claudia Gehlen
Published 31 May 2005
Reference 5280
Topic Strategy
Industry Retail,  International Trade and Development,  Supermarkets
Region Asia
Length 15 page(s)
Inspection copy
6.00
Add to cart
Summary

By 2004, Wal-Mart, the world's largest company, operated countless discount stores, neighborhood stores, hypermarkets (Wal-Mart Supercenters) and membership warehouses (Sam's Club). In the 1990s, Wal-Mart started to expand abroad, entering entered China in 1996, Korea in 1997, and Japan in 2002. In China, Wal-Mart operated, and aggressively expanded, its retail business in partnerships, joint venture partners and suppliers. In 2002, the company invested in Seiyu, a prominent Japanese retailing chain. Throughout, Wal-Mart has been engaged in tough competition with other global and domestic retailers in Asia.

Teaching objectives

The case aims to show: 1. Competitive Strategy in Asia. 2. Adaptability of a business model to international environments. 3. Globalisation of retailing. 4. Entry Strategies. 5. Competing in China. The case can be used in conjunction with: Mass Retailing in Asia and Carrefour in Asia.

Keywords
  • GLOBAL STRATEGY
  • ASIA PACIFIC
  • ENTRY STRATEGY
  • INTERNATIONALISATION
  • RETAIL
  • COMPETITIVE ADVANTAGE
About the authors
Jones

Neil Jones

Senior Affiliate Professor of Strategy
Lasserre

Philippe Lasserre

Emeritus Professor of Strategy and Asian Business
Gehlen

Claudia  Gehlen


Recommended Cases

Carrefour in Asia

By  Neil Jones,  Philippe Lasserre,  Claudia Gehlen
Add to cart
Carrefour, the second largest mass retailer in the world, has expanded its presence in the Asia Pacific region and competing head-on with Wal-Mart and other Western and Asian mass retailers to capture a significant position in the region. The case retraces the historical development of the expansion, starting with an entry into Taiwan in the late 1980’s.
    View case

    Accor in Asia

    By  Hellmut Schütte,  Michele Jurgens
    Add to cart
    As the world’s largest hotel group, Accor has been late entering Asia. In 1987 it finally pushes ahead with an aggressive expansion strategy using its brands Novotel, Mercure and Ibis. However, lack of capital and arguments between HQ in France and the legally independent regional center in Sydney in 1996 raise questions as to whether the rapid development can continue.
      View case

      Guangzhou Honda Automobile Co., Ltd. - Honda's Entry into the China Car Market

      By  Philippe Lasserre,  Ming Zeng
      Add to cart
      Honda became the new joint venture partner of the Guangzhou Automobile Group, after Peugeot’s pullout from Guangzhou in 1997. The new joint venture, Guangzhou Honda Automobile Co., Ltd., has made remarkable advancements from the start of the operation, although the competitors were operating in the red.
        View case