Case Analysis for Walmart

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|[Top Management Team Report] | | | |[ Wal-Mart Stores Inc.& Wal-Mart- Update, 2011] | | | Brief Summary

In the Wal-Mart case, the main issue Glass and Soderquist faced was how to sustain the company phenomenal performance. Based on the Team’s analysis on the case, Wal-Mart has four core competences that lead to its competitive advantages: price advantage, location, advanced information system, and supply chain management. But these competitive advantages were not necessarily sustainable. Additionally, Wal-Mart faced issues like international expansion failure. This report is going to analyze the problems in the case and give suggestions for Wal-Mart.

Analysis and Recommendations

Locations

At first, Wal-Mart located its stores in rural areas. Thus, the rental fee was lower than that of the competitors. In the mid-1980s, Wal-Mart did not have many direct competitors in the area where they located. However, with more and more competitors taking advantage of lower rental fee of rural stores, Wal-Mart found itself in a market of fiercer competition. Then Wal-Mart began expansion internationally starting from 1991. But Wal-Mart failed in Germany and South Korea because of the culture issue. Also, it was more difficult for Wal-Mart to enter a developed and mature market. In the age of globalization, cooperation is a prevailing trend. In order to enter target markets successfully, we suggest that Wal-Mart cooperate with the local best retailers, especially in...
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