Entry Mode, Growth Strategy And Performance About Transnational Retail Enterprises In China

Since the whole open of retail industry of China in the end of 2004, foreign retailers have being come into China in great force, bringing domestic retailers great test and challenge. Many people are worry about domestic retail industry because of the present situation that domestic retail is suffering "large in number, small in scale, scatter in location", high liability and continuous occurrence of bankruptcy. A great deal of research has been done about this question in Academic field. But most studies are qualitative discussions on macro theory and policy of retail industry. Studies that concentrate in individual cases are very few, especially comparative studies about foreign retailers. Some retailer is expanding rapidly, but some meet with "being acclimatized," and their operating performance is good or bad? What are the factors of influence? All these questions are worthy of us to study.The author use case study and take Walmart, Carrefour and Tesco as the examples of multinational retailers of China to explore the effect that different entry modem, growth strategy of transnational retail enterprises have on the performance. At last, we explore if he enterprise characteristics influences the three variables.Through in-depth research, this paper also finds their Chinese market entry modes, growth strategy have effect on the performance, which is manifested in the market share, turnover growth rate and growth rate of the number of the stores. Moreover, the performance is influenced by combinations types of entry mode and growth strategy.We hope to provide a new perspective to study transnational retail enterprises' development in China and get has theoretical and practical theory.