IBUS 690 - Wal-Mart in China In the early 1990s, some...

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Wal-Mart in China In the early 1990s, some western firms came to China and tried to star their business in local market. Many foreign retailers came to China and opened outlets stores in local
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market, which Chinese is called supermarket. At beginning, all the supermarkets were small, and only had very few categories and brands for customers to make choice. By late 1994, Wal-mart sent an advance team of executives to China, and two years later, opened the first Wal-mart supercenter and Sam’s Club in Shenzhen (The Great Wal-mart of China, 2005). Wal-mart opens four categories stores in China: Supercenters, Sam’s Clubs, Wal-mart stores and Neighborhood markets (Wal-mart China Website: introduction,   http://www.wal-martchina.com/english/walmart/index.htm , 04/02/08). At beginning, “Wal-mart could boast just 43 stores in China—far cry from the 3,719 it operates in the U.S. And China’s chamber of commerce reported in its annual retail ranking that Wal-mart grossed $916 million—less than 2% of the company’s international sales, and a tiny sliver of its $288 billion total revenue” (The Great Wal- mart of China, 2005). Today, there are 104 units in 55 cities, including 99 Supercenters, 3 SAM’S Clubs and 2 Neighborhood Markets. Across China Wal-Mart employs over 50,000 associates (Wal-mart China Website: introduction, http://www.wal- martchina.com/english/walmart/index.htm , 04/02/08; corporate introduction, 2008). Wal-Mart designed the Supercenter concept to save customers time and money, and also offer a unique shopping experience based on the Wal-Mart philosophy of "Every Day Low Prices". Supercenters feature the traditional 36 general merchandise departments found in Wal-Mart Discount Stores. Additionally the grocery area offers a bakery, delicatessen, frozen food section, meat and dairy as well as fresh produce departments. Through high volume sales, Supercenter customers find Wal-Mart's Every Day Low Prices on everything from produce to washing powder (Wal-mart China Website, Business categories, http://www.wal- martchina.com/english/walmart/operation.htm , update 2008). SAM'S CLUB is a low-cost members-only warehouse club named after the founder of Wal-Mart Stores, Inc. - Sam Walton. The first SAM'S CLUB was founded in 1983. Acting like a purchasing agent for its members, SAM'S CLUB offers exceptional value on famous-brand merchandise at "member only" prices for both business and personal use. SAM'S CLUB operates by selling high volumes of merchandise at very low
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profit margins which are passed along to members in the form of low, warehouse prices. In addition to its brand-name, low-cost merchandise mix, SAM'S CLUB offers a variety of food items including fresh seafood, produce and baked goods, and other food and non- food categories. Additional member benefits also include discounts at local restaurants, and recreational facilities. Everything we do is to save you money (Wal-mart China Website, Business categories, http://www.wal-
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IBUS 690 - Wal-Mart in China In the early 1990s, some...

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