How Can Large Foreign-Funded Supermarkets Gain a Foothold in China: Take Sam's Club as a Study Case

Hailin Cheng; Yufei Cheng; Yue Xu

doi:10.54691/bcpbm.v16i.302

Authors

Hailin Cheng
Yufei Cheng
Yue Xu

DOI:

https://doi.org/10.54691/bcpbm.v16i.302

Keywords:

Sam's Club, Marketing Mix, International Business

Abstract

Sam's Club is one of the largest membership-based retailers in the world. In the context of the epidemic, they still have a place in China's retail industry. Moreover, it has won the affirmation of many customers through its unique advantages and innovations. This paper aims to use Sam's Club as the main object of this case study to analyze how it has won in the Chinese retailer industry. SWOT Analysis is preferred to use as the primary method. This paper concludes that the differentiated and high-quality private label allows Sam's Club to win some competitiveness. And in the context of economic growth and the COVID-19, consumers are more inclined to buy a larger quantity of goods for storage at a time, which also reflects the advantages of Sam's Club. On the other hand, Chinese policy will impose some restrictions on Sam's Club. Therefore, Sam's Club in the Chinese market needs to pay more attention to the Chinese government's policies on international supermarkets and actively adjust and innovate policies to enhance competitiveness and increase customer loyalty in line with international conditions.

Downloads

Download data is not yet available.

References

Metro. Annual financial statements of Metro AG, 2020. Available at: https://reports.metroag.de/annual-report/2019-2020/index.html. Accessed from: September 18th, 2021

Chang, Y. & Hu, J. Analysis on the Mode of Multinational Retail Enterprises Entering Chinese Market—Take Walmart, Carrefour and Metro as Examples. Modern Economy, 2020, 11:17-2. Doi: 10.4236/me.2020.111003.

Walmart. About us of Sam's Club, 2021. Available at: https://www.samsclub.cn. Accessed from: September 17th, 2021

Kim, S., & Choi, S. The role of warehouse club membership fee in retail competition. Journal Of Retailing, 2007, 83(2), 171-181. DOI: 10.4172/2169-0316.1000239.

Courtemanche, C., & Carden, A. Competing with Costco and Sam's Club: Warehouse Club Entry and Grocery Prices. Southern Economic Journal, 2014, 80(3): 565-585. DOI:10.4284/0038-4038-2012.135

Zander, Ivo; Mcdougall-covin, Patricia; L Rose, Elizabeth. Journal of International Business Studies; 2015,46(1): 27-35. DOI:10.1057/jibs.2014.60

Vahlne, J. E. & Johanson, J. New technology, new companies, new business environments and new internationalization processes? Critical perspectives on internationalization, Amsterdam: Pergamon, 1997.

Turnbull, P. W. & Valla, J. P. Strategies for international, industrial marketing. Business Horizons, 1987, 30:86. DOI: 10.1002/mde.4090080107.

Turner, L. International Affairs. Royal Institute of International Affairs 1944, 49 (3): 450-451 DOI: 10.2307/2616854

Forsgren, M. Theories of the multinational firm: A multidimensional creature in the global economy. Cheltenham, UK: Edward Elgar, 2008.

Dunning, J. H. Location and the Multinational Enterprise: John Dunning's Thoughts on Receiving the "Journal of International Business Studies". Journal of international business studies, 2009, 40 (1): 20-34. DOI: 10.1057/jibs.2008.75

Engwall, L. Global enterprise in the fields of governance. Transnational governance: Institutional dynamics of regulation, Cambridge, MA: Cambridge University Press, 2006.

Borden, N. The Concept of Marketing Mix. Journal of marketing. New York: Sage Publications, INC, 1984.

Išoraitė, M. Marketing Mix Theoretical aspects. International Journal Of Research, 2016, 4(6). DOI: 10.14254/1800-5845/2019.15-4.10

Boddy, D. Essentials of Management - A Concise Introduction. Harlow: Pearson. 2012.

Chen, H. SWOT Analysis and Development Strategy of China's Retail Industry. International journal of technology and market, 2017, 18(3):1224. DOI: 10.3390/ijerph18031224.

Sam's Club: Our Company. Available at: https://corporate.samsclub.com/our-company. Accessed from: September 14th, 2021

Wang, E. Understanding the 'retail revolution' in urban China: a survey of retail formats in Beijing. The Service Industries Journal, 2011, 31(2): 169–194. DOI:10.1080/02642060802706964.

Munusamy, J., & Wong, C. Relationship Between Marketing Mix Strategy And Consumer Motive: An Empirical Study In Major TESCO. American: Unitar E-Journal, 2008.

Al Mamun, M., Zakaria, Nahiduzzaman, M., Ahmed, R., & Rahman, L. On the Transformation of Enterprise Operation Mode in the Era of Cross-border E-commerce - Taking Sam's Club as an Example. Industrial Engineering & Management, 2017, 06(4). DOI:10.4172/2169-0316.1000239.

Sheth, J. Impact of Covid-19 on consumer behavior: Will the old habits return or die?. Journal Of Business Research, 2019, 117:280-283. DOI: 10.1016/j.jbusres.2020.05.059.

Liu, J. Analysis of China's Large Supermarket Service Competition Strategy. Modern Management, 2013, 3:147-151. DOI: 10.12677/MM.2013.35024.