Introduction to International Business Global Marketing Assignment

Introduction to International Business Global Marketing - Assignment Example Furthermore, as the retail market of China is growing rapidly just as United States, so, the organization of Wal-Mart desired to penetrate Chinese Markets (Yates, 2013). The Chinese retail market is recognized as one of the most growing market, with estimated revenues of $ 860 billion in the year 2006. Moreover, it is estimated that the retail revenue of the Chinese market might increase to $ 2.4 trillion by 2020. This estimated attracted the world’s leading retailer, Wal-Mart to penetrate into the market of China as compared to others. However, it had to face wide range of challenges or risks at the time of penetration or expansion. These are stated as below. Customer Preferences: this is recognized as one of the most important challenge that the organization of Wal-Mart had to face at the time of penetrating the market of China. However, in order to mitigate the challenge, the organization decided to implement the strategy of ‘go-native’, i.e. local adoption. The organization of Wal-Mart decided to implement the taste and preferences of the local customers so as to attract a wide range of customers of varying income groups and cultures. For example: Wal-Mart decided to offer fresh foods for dining purposes so as to enhance the reliability and loyalty of the customers towards the brand (Gereffi & Ong, 2012). Culture: the organization of Wal-Mart adopts the local culture of China at the time of promoting the products so as to attract a wide range of customers towards the brand that might amplify its brand value and market share. Logistics and supply Chain: in order to mitigate the logistics and supply chain issues, the organization of Wal-Mart recruited a wide range of suppliers in order to attain the ingredients very easily (Gereffi & Ong, 2012). Economic risks: inflation rates acted as one of the biggest economic risk for the organization