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Wal-Mart Case Study

By | Feb. 2013
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The essentially strategy at Wal-Mart is low cost and high volume. This strategy with a view to customer satisfaction based on low price and preferable customer services. Another point worth to mention is Wal-Mart’s location-away from competitors, which is helpful to acquire high volume. Based on Wal-Mart’s latest financial report, we could say Wal-Mart is keep earning profit and already keep growing for 50 years under its current strategy. As a world famous retailer, Wal-Mart has abundant fund and a good plan of capital. Wal-Mart’s tangible resources are financial resources, organizational structure, location and technological resources. Simplify organizational structure is an effective way to reduce labor cost and improve efficiency. Every store’s sales volume, profit and cost could be collect, analysis and transfer with the Internet. Data analysis can be done based on data from different area, different stores, different departments, and even a specific category in a specific department. Intangible resources are human resource, reputation and creative spirit. One of the most unique advantage at Wal-Mart is its employees’ willing to sacrifice and teamwork spirit. Employees are Wal-Mart’s most important resources. Wal-Mart’s good reputation is not only come from its good service and high quality, but also come from its good commonweal visualization. Wal-Mart reduced its cost on advertising, however, they have never been stingy when donated to non- profit organizations and public welfare establishments. Although Wal-Mart is keeping developing, but there still have other opportunities. For example, Wal-Mart could cooperate with other retailer by acquisition, merge and strategic alliances. The other one is Wal-Mart could expand its market to Europe. But there also have threats for Wal-Mart. Due to its great success, Wal-Mart has become other retailers’ target. It’s a heavy pressure for everyone to make Wal-Mart keep developing. Another threat is Wal-Mart’s...
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