March 7, 2013
Marketing Management – TTH 12:15
Wal-Mart Case Analysis
Walmart has become one of the top companies in the world with their best cost strategy. Providing a service that has good quality and low cost. Although Walmart’s dominant brand brings in large revenue the competition is still vigorous. Direct competitors, Target and Costco fight for market share in discount merchandise. Home Depot, Circuit City, and Best buy manage to still capture share in consumer electronics. Not only does Walmart face competitive challenges but also management issues. The original Walmart vision embraced employees as associates and encouraged them to create ideas that would improve store performance. However, Walmart had become known for low pay and heavy reliance on part time and temporary help. This reduced the expenses associated with benefit packages especially health care coverage. Accumulate and organize facts relevant to the problem
Collectively, our group best believed that it would be wise to complete an indepth marketing business ananlysis which will help unveal the true undelyings of Wal-Mart. This would incure the evaluation of their sistuation analysis, stratigic marketing issuses, and SWOT analysis; which we found to bee highly effective when organizing facts relevant to the problem. While Wal-Mart continues to achevieve a thriving name amoung the United States and sevreal forgien markets; once we fully assised Wal-mart internal and extrental our group was accuate to believe there are aparent underlying threats within the enviomenial scannings, disribution, and management and policy issues, which should have been address for the corporation. To better exploit Wal-Marts’ strength and opportunities and reduce threats and weaknesses, recommendations are provided.
Enviormental Scanning of Operational Sites
Scanning the international enviorments of which Wal-Mart choose to conduct its opreations, supercenters, distcounts stores, and SAM Clubs; our group was able to compehened the standings and pitfalls of those emerging markets. We were also able to unveal the corporation stratgey analysis of determining wither market entry was viable. • Political/Regulatory: Asia proved to be a tremendous opprotunity and as well a market which would be fierece for Wal-Mart to tap into. Through many efforts the company continued to find ways of penetrating the best locations, but found that uncontrollable, political and rulatory forces would result in failure. “During the late 1990’s Wal-Mart intial effort to enter into Indonesia was shut down by rioting during the Asian financial crisis (Yoffie, 3).” They also faced harsh realities within its operations in Chian, “bowing to the governements pressure to allow Chinese workers to unionize (Yoffie, 3).” While they found both success and lost in this market Wal-Mart learned that trying to entre markets with strong polictical forces and high regulations would be a challenge. • Cultural: Globally, Wal-Mart experienced highs and lows in its intentions with international growth. More then often the corporation was known for neglecting to adapt to local markets and quickly forcing the Wal-Mart culture on regions. In contries such as Germany, “Wal-Mart was ready for neither entrenched postion of such discounters as Aldi, nor for the inflexibilty of suppliers and the strength of trade unions (Yoffie, 4).” However in markets such as the U.K., Wal-Mart experinced impecable and rapid growth amoung the envioment. • Competition: During the 90’s, warehouse concepts exemplified by Costco, Home Depot, and BJ’s demontrated imprsive succuss amoung both national and internatial buyers. Both Best Buy and Curcit City became the result of consumers revolutionizing from the “exposed wires and circuits of Radio Shack,”to a lustrous and cost effective chain (Yoffie, 4). However, Wal-Mart sharpest competitior was Target, which...