Introduction Wal-Mart has undergone remarkable growth through the implementation of the international market expansion strategy. Some of the markets in which the firm has experienced optimal performance include Brazil and Mexico. The international market expansion strategy has increased Wal-Mart’s capacity to generate sales revenue. One of the markets that Wal-Mart has identified critical to its future sustainability includes China. Statement of the problem Despite its commitment to global market expansion, Wal-Mart has not succeeded in all its target international markets. One of the markets that have proved challenging to Wal-Mart’s revenue generation strategy includes China. Wal-Mart’s motivation to enter the Chinese market arose from identification of the prevailing market opportunity. China ranks amongst the fastest growing economies in the Middle East. Successful exploitation of the available market opportunity in China can contribute to remarkable improvement in the company’s long-term sustainability. Wal-Mart intends to strengthen its market performance in China through the implementation of the ‘every day low price’ strategy. This strategy has remarkably improved Wal-Mart’s performance in other emerging markets such as Brazil and Mexico. However, the strategy has proved ineffective in fostering the firm’s market dominance. The limitation of the strategy in the Chinese market has arisen from the complexity associated with the Chinese retail industry. One of the core factors that have contributed to the company’s poor performance entails the influence of different market forces such as an increase in the intensity of competition. Despite the firm being in operation in the Chinese market for over a decade, the low pricing strategy has not contributed to significant improvement in the firm’s capacity to generate value for the company. Purpose of the report This report entails a strategic case analysis of Wal-Mart’s performance in the Chinese market. The report details a macro-environmental analysis of the prevailing market conditions in China. The macro-environmental analysis is undertaken by employing the PESTLE and SWOT frameworks. Moreover, the report evaluates the gaps in Wal-Mart’s approach to market segmentation, customer analysis, positioning, and marketing mix strategies. Thus, provides insight on the issues that have contributed to Wal-Mart’s poor performance. The report further provides alternative solutions that the firm should consider in promoting its performance in China. Analysis PESTLE Analysis Wal-Mart’s operation in the international market is subject to different forces emanating from the political, legal, economic, social, and technological environments Political and legal factors China has implemented different legal and political policies in improving its attractiveness to foreign investors. One of notable structural changes that the Chinese government has enacted entails relaxing the requirements necessary for foreign companies to establish operations in the country. At the time of its entry into the Chinese market, all foreign companies intending to operate in China were required to partner with local Chinese firms. This requirement