Walmart from China to India Case Solution

2. What are the key differences between the US, China, and India markets? Identify the critical CAGE factors that matter most for Walmart. What can we learn by using CAGE to consider Walmart’s strategy across these three markets?

The US market had ease of access to transport as well as increased consumer spending. Wal-Mart offered the high paced consumers a one stop shop for all their daily needs and demands. In contrast, the Chinese market was differentiated into rural and urban segments, with retail habits varying across the two divides. The rural segments patronized local vendors, whereas the urban shoppers sought the highest quality for the lowest price. The Indian market, in turn, depended not only on the consumer’s income but also on access to transportation, payment, and storage options. The shopping habits were also built around the cultural web of the society.

The CAGE factors that mattered most to Wal-Mart included that of culture, leading to differences in consumer behaviour and habits across different geographies. Wal-Mart also had to be aware of administration issues including the legal and political environment which differed across all three geographies in terms of government regulations, FDI rulings as well as credit financing and labour and employment laws. The political stability and political relation with the USA were also critical for successful operations.

The CAGE framework allows a deeper analysis of Wal-Mart’s strategy to enter different geographies, and its ability to deal with different challenges that each presented through anticipation. It also highlights that careful attention to each of the external factors allows a more successful expansion and entry strategy into a foreign land.