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Essay text:
Changing the
commander-in-chief the night before a major battle was, to many, no different from a public
admission of the failure to live up to the retail giant?s ambition in China. Indeed, nine years
after its market entry in 1996, Wal-Mart ranked only twentieth in sales among all chain stores
in China, compared to the fifth place taken by its world rival, the French Carrefour, which
had entered the market at more or less the same time as itself. Wal-Mart had 43 stores
nationwide, far behind Carrefour?s 62 [see EXHIBIT 1 for top 25 chain stores in China]. But most importantly, whereas Carrefour had started generating positive returns from its stores in
China, the annual numbers sent back by Wal-Mart China to its home office in Arkansas, US
remained in the red...
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