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Abstract

This is the first of a three-case series. Part (A) helps to richly and deeply analyse a happening industry in China - retailing. Its competitive dynamics is the fine thread that runs through all the three cases. Now that China is on every global (multinational corporation / trans-national corporation) company's growth agenda, the class can debate industry-specific dynamics as well as economy-wide factors. So bigger questions pop out. What is the 'China Factor'? What does this mean to the companies operating or willing to operate in China? What should be their homework before entering China? Should their moves be strategic or tactical, whilst they are in China? With the Chinese economy integrated into the global economy (since 1978 and more so from 2001 when it formally joined the WTO (World Trade Organisation)), its economic growth rate has hovered at around 10-12%. And that's very good news for all the major global corporations because there is huge demand there. However, this good news has a flip-side too: China's business terrain is bumpy for a variety of reasons. What are those reasons? Hard infrastructure and soft infrastructure are the prime suspects. But many more are embedded into this case series that can be unearthed with meticulous analysis. The retail industry is one among the many that saw intensified competition during the past decade, in China. Competition is not yet even because of huge untapped potential; so a discussion on industry lifecycle can ensue. It is for the players to strategise their moves and counter-moves, where value chain analysis will prove essential. The market entry strategies of Wal-Mart and Carrefour will make for an interesting analysis.
Location:
Industry:
Other setting(s):
2007

About

Abstract

This is the first of a three-case series. Part (A) helps to richly and deeply analyse a happening industry in China - retailing. Its competitive dynamics is the fine thread that runs through all the three cases. Now that China is on every global (multinational corporation / trans-national corporation) company's growth agenda, the class can debate industry-specific dynamics as well as economy-wide factors. So bigger questions pop out. What is the 'China Factor'? What does this mean to the companies operating or willing to operate in China? What should be their homework before entering China? Should their moves be strategic or tactical, whilst they are in China? With the Chinese economy integrated into the global economy (since 1978 and more so from 2001 when it formally joined the WTO (World Trade Organisation)), its economic growth rate has hovered at around 10-12%. And that's very good news for all the major global corporations because there is huge demand there. However, this good news has a flip-side too: China's business terrain is bumpy for a variety of reasons. What are those reasons? Hard infrastructure and soft infrastructure are the prime suspects. But many more are embedded into this case series that can be unearthed with meticulous analysis. The retail industry is one among the many that saw intensified competition during the past decade, in China. Competition is not yet even because of huge untapped potential; so a discussion on industry lifecycle can ensue. It is for the players to strategise their moves and counter-moves, where value chain analysis will prove essential. The market entry strategies of Wal-Mart and Carrefour will make for an interesting analysis.

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Location:
Industry:
Other setting(s):
2007

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