Question 1:

The reason why Walmart successful in USA are:

- Selling brand-name product for less. (Successful Factors)
- Focusing on two major value drivers: Price and service delivered to customers.
(Successful Factors)
- Brand’s credibility to maintain EDLP strategy and mix it with other pricing
philosophies.(CA)
- Implementing beliefs and rules for Walmart’s employees to maximize customer’s
satisfaction.(CA)
- Opening discount stores in small, one-horse town to avoid competition.(CA)
- Effective cost control system.(CA)
- Strong partnership with suppliers. (Successful Factors)
- Applying, maintaining and improving superior distribution and logistics
technologies. (Successful Factors)
- Satisfying employees in the company with low agency cost. (Successful Factors)

Competitive Advatages:
-

Question 2:

The differences in China markets:

- Fragmented market other than condensed market.
- Intensive competition other than “small, one-horse town” in US.
- Chinese market charaterised by low quality product and service. => Walmarts is
famous for selling BRAND-NAME with low price (Different in the quality of
products).
- Larger income disparity => Difficult to distribute products evenly due to different
customers’s purchase power.
- Local Protectionism => Making it difficult for Walmart to enter the market as well
as sell international products.
- Inconsistent infrastructure => This leads to Walmart's goods to be stored before
being delivered to the store by switching vehicles. This causes transportation costs
to increase.
- Regulatory Restrictions => Limiting the regional expansion for Walmart.
- Lack of IT network => Making it more difficult for purchasing and distributing
products.
- Different in customer behaviour in China => These differences such as shoplifting,
many trips, littel purchases lead to the problem of how to satisfy Chinese
customers as Walmart does in the US