Industry Analysis Analyzing the Task Environment
Analyzing important stakeholder groups such as suppliers and customers in a particular
Corporation's task environment.
Short History of Wal-Mart
Founded by Sam Walton. He was in business since 1940 but in 1962 decided to focus on low price-high quality discounter. His personal charisma, simple upbringing and a dedication towards hard work has made his business a success. He found a right market niche, also the main focus was customer oriented and employees were made to feel part of the team and called "associates" to make them feel part of the company and give them the drive for success. Also there is a scheme where employees get shares in the company. This was later copied by such giants as Microsoft. Wal-mart is the largest and most profitable retailer in the USA.
2 Main Slogans of Corporate Strategy of Wal-Mart
a) Customers will be provided with what they want, when they want it and all at value
b) Treat each other as we would hope to be treated , acknowledge our total dependence on Associate-partners (employees of the company) for our success.
Forces Driving Industry Competition
- Wal-Mart, Kmart, Khol's Corporation, Sears, Woolworths, others.
Rivalry among existing firms
- Number of competitors - Around 5 major players, medium threat of competition.
- Rate of Industry Growth Slow business start, medium to high progressive growth up to 1980's, after that high growth due to various store formats, domination of the market, high employee motivation, clever business tactics.
- Product and Service characteristics High Service standards, employee participation scheme, employee motivation making them run their departments as though their own business, escorting customers to their cars, distinctive blue uniform, wide aisles and varied assortment.
High Quality/Low Prices high quality branded goods offered at low prices,... [continues]
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