Wal-Mart in Hong Kong
The Wal-Mart retail outlet is one of the leading American backed markets to get domestic products that have been subsidized. In the recent past, it has been considering growth of their shops to other countries and one of them will be Hong Kong in China.
Reasons why choose Hk to increase
One reason why the Wal-Mart should purchase Hong Kong may be the promising economical trends which have been there. The entire world control that was experienced in January to July 2007 was a shocking $391. 9 billions, which has been a doze. 4% increment as compared to similar period of the prior year because shown in Consulate Standard of India, (2007). This is perpetuated by steady demand from mainland China and particularly for commercial export products like the electronics and electronic digital components.
The other cause is that there exists a British legal system which has been adopted in Hong Kong hence there is a great atmosphere that is conducive plus the American-based business will not have a difficult time in terms of introducing itself with all the business environment. This accompanied by availability of labor and effective communication makes Hong Kong an appropriate target pertaining to expansion.
Since Wal-Mart will be a foreign held business you will have need to engage the Hk population in the industry through partial ownership from the business. This will be caused by floating shares and allowing the folks to buy shares and holding onto 50% from the ownership to the mother firm in UNITED STATES.
In terms of the product strategy, it is essential to note that there are other string stores that already are present in Hk hence Wal-Mart will have to counter this through the provision of the wider variety of products, effective delivery and quality assurance. This will be achieved through importation of goods from other countries, USA included and having a blend the imports and the regionally sourced great. The additional very significant point to take note here is the significance of conducting a qualitative study among the customers so as to know the proper market segmentation while indicated by simply VentiMar LLC (2011). These strategies will help in the improvement the customer quest for products and vast array.
Marketing can not be underestimated especially in the first two years of entry in the market. However , it will be essential for the Hong Kong department to use the mother brand of Wal-Mart since this is usually an international manufacturer that is respected by a large population. This will help in the image portrayal and the market approach will the very much helped at this time. The business will need to