Situation Analysis of Sam's Club Based on the SWOT Model Based on the Research of Chinese Market Environment

Abstract

Sam's Club was founded by Mr. Sam Walton, the founder of Walmart, in 1983. As a high-end member superstore under Walmart, one of the world's top 500 companies, it has made inroads into the international market since the early 1990s. Since the first Sam's Club landed in Shenzhen in 1998, Sam's Club currently operates 36 stores in 23 cities and covers most of the country through its e-commerce platform. By focusing on the characteristics of consumers, market trends, and brand influence in Mainland China. This report analyzes the internal business advantages and disadvantages of Sam's Club and the external environment in the Chinese market. It summarizes them with the SWOT model through field visits and data searches. Finally, this article proposes strategic outputs for its internal strengths and weaknesses as well as market opportunities and threats. By analyzing the example of Sam's Club in this article, it suggests the key reasons why it went viral. Since Sams Club went into the Chinese market depending on focusing on its three main competitive generic strategies, Sam's Club has seized the opportunity of the epidemic to expand its marketing scope by leveraging them. In the development of the Chinese market, changes in consumer preferences and the economic environment have led to problems. The WO strategy becomes the optimal choice for Sam's Club to consider with the internal and external situation of the current development in China, to strengthen its own strengths and clear the business strategies.