WAL-MART IN CHINA 2
When deciding to do business in another country, there are many things you must
consider. What is the market like? What location is best suitable for your business? What is the
culture like? When Walmart decided to branch of into China in 1996, many of these questions
they answered along the way. They took a risk. And although the road wasn’t easy, they were
able to conquer the Chinese market for the most part. Let’s analyze Walmart’s strategy along the
way to see how they ended up where they are.
During the time Walmart decide to locate to China, “The gross domestic product reached
over US$1,064.4 billion, an increase of 9.7% over the previous year”. Because of this, the
Chinese government was looking very promising to Western businesses. On the other hand, one
of the major restriction Walmart had initially was “all foreign businesses would have to be in a
joint venture or other type cooperative agreement with at least one Chinese partner, with the