Preview

Case Analysis: Wal-Mart Stores

Good Essays
Open Document
Open Document
447 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Analysis: Wal-Mart Stores
Case Analysis: Wal-Mart Stores

I believe Wal-Mart uses the growth strategy the most out of the corporate strategies. They are constantly seeking to increase their business by expanding into new products and markets. Wal-Mart also shows a forward vertical integration.

2) a) strengths- one stop shopping / strong community involvement / leads industry in information technology.

b) weaknesses- no formal mission statement, few women and minorities in top management, membership only for SAM’S Club.

c) opportunities- consumers want ease of shopping / internet shopping is growing / elderly population growing / environment conscious consumers

d) threats- being number one means that you are the target of competition / being global retailer means that you are exposed to political problems in the countries that you operate in / regulation of Wal-Mart pharmacies

a) Threat of new entrants- entry barriers are relatively high due to Wal-Mart having great distribution systems and financial capital to succeed over competitors / Wal-Mart usually has absolute cost advantage over other competitors.

b) Threat of substitutes- not very many substitutes that offer convince and low prices / customers has the choice of shopping at speciality stores for their desired products but will not find Wal-Mart’s low pricing. c) Bargaining power of buyers- individual buyers have very little to non pressure on company / consumer advocate groups have complained about Wal-Mart’s pricing techniques. d) Bargaining power of suppliers- since Wal-Mart holds large amount of market share they offer business to manufactures and wholesalers / Wal-Mart could vertically integrate / Wal-Mart at times deal with large suppliers who have more bargaining power than small suppliers e) Current Rivalry- three main rivals are Sears, K-Mart, and Target / Target being the strongest of competitors as they grow in domestic markets as Sears and
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Bus-110 Chapter 7
    • 351 Words
    • 2 Pages

    Bus-110 Chapter 7

    d. Threats: Strong competitive rivalry from other major chain stores such as Wal-Mart, Target, and KB Toys(I do believe that KB Toys is no longer a threat). An embargo implemented on countries such as China could also be a threat.…

    • 351 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Local Business Bus/210
    • 319 Words
    • 2 Pages

    Local Business Bus/210

    The first component of Wal-Mart is business commerce. Business commerce is when Wal-Mart exchange good and services with other businesses. For example, Wal-Mart has a hair salon service; I love to get my hair done every other week. Also, many Wal-Marts provide banking services and some fast food services. Wal-Mart has stock trades also. Another main component of Wal-Mart is business occupation. Business occupation is the acquired set of specialized skills and abilities that allows Wal-Mart to create valuable goods and services. When my husband started at Wal-Mart he had to undergo several trainings to ensure that he understands the business and also that he provides customers with excellent services. Wal-Mart provides thorough training to its employees so that they can keep the customers coming back. Customers always value great customer service. I think this is one way Wal-Mart remains ahead of its competitors. The last main component of Wal-Mart is business organization. Business organization is the system of task and authority relationship which coordinates and controls the interactions between people so that they work toward a common goal. Wal-Mart’s common goal is to provide low prices. They try to provide lower prices than their competitors. They are about saving their customers money. They have reduced the costs of their retail and other products in the store. There are many Wal-Marts around the world and they provide the same services in all of them. I love Wal-Mart and I agree that they have prices lower than many other retailers. I definitely agree with their slogan, it is so true. “Save money, Live better”.…

    • 319 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Is Wal-Mart Good for America?
    • 428 Words
    • 2 Pages

    Is Wal-Mart Good for America?

    As for Wal-mart's business strategy, it is not wholly unique. Their strategy is to demand lower prices from their suppliers so that they can pass on those savings to the consumer. The supplies to comply and offer the largest cuts are often featured in higher supply within the store, suppliers who do not wish to lower their prices are simply not featured. Many companies including but not limited to K-Mart, Home Depot, and Lowes all practice this same formula. The difference is that Wal-mart is successfully pushing their products.…

    • 428 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    The Pros And Cons Of Wal-Mart
    • 888 Words
    • 4 Pages

    The Pros And Cons Of Wal-Mart

    Wal-Mart doesn’t limit its products to one specific need, but to any kind of need. When setting foot Into a Wal-Mart it may be overwhelming to see all of the products to choose from. “A quick look around at the store in Paris makes clear what an employee is up against: thousands of items (90,000 in a typical Wal-Mart)” (Olsson 612). To list a few items, Wal-Mart carries hardware, food, toys, and school supplies. Other stores that specialize in selling these products will lose a good percentage of customers that are needed to keep their business running. This variety can also potentially discourage customers from ever using different businesses. Nonetheless, these different areas of goods will satisfy the needs of many people when located in one area. People may come in for a specific item, simply because they are able to purchase it at the lowest price possible. Another common scenario is that someone may go there for multiple purposes instead of just one. For example, one can complete his or her grocery shopping, while purchasing a computer that is needed for school. Instead of traveling through town to find the same type of a computer for a lower price they can do it all at Wal-Mart because of the convenience the store offers. Not only small businesses but also larger companies can be hurt from this type of convenience. “The average Wal-Mart customer earns thirty-five thousand dollars a year” (Mallaby 621). Best…

    • 888 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Wal Mart Supply Chain
    • 310 Words
    • 2 Pages

    Wal Mart Supply Chain

    2. Wal-Marts supply chain management system has provided higher levels of product availability and lower merchandise acquisition and transportation costs by using efficient techniques. Wal-Mart uses a Just in Time inventory system. This is when they receive less-inventory on a more frequent basis then traditional inventory systems. This leads to less lead times and less carrying cost as there is less inventory on hand. They receive a smaller amount of inventory and when need they purchase new loads which will come quickly. They also use cross docking which means that the inventory reaches the trucks and are immediately bound for stores. This is a much more efficient process and once again acquires less carrying cost for inventory. These techniques make Wal-Mart a leading innovator when it comes to efficient and effective supply chain…

    • 310 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Loblaws vs Walmart
    • 618 Words
    • 3 Pages

    Loblaws vs Walmart

    An advantage for Wal-Mart is that the bargaining power of suppliers is weak. Wal-Mart is probably their biggest purchaser. And therefore they will do everything to keep them satisfied. Also the recent crisis has made the bargaining power of buyers weak. There is/was a big…

    • 618 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Why Is Walmart Bad For The Economy
    • 853 Words
    • 4 Pages

    Why Is Walmart Bad For The Economy

    Wal-Mart’s conundrum with the economy is that it provides premium services and goods at a price well below that of any competitor. The size and scope of the company’s operations allows for them to put pressure on the companies that produce these goods. Wal-Mart often uses outsourced labor and imported goods as a means…

    • 853 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    how michael porter five model affects Costco Wholesale Corporation
    • 305 Words
    • 2 Pages

    how michael porter five model affects Costco Wholesale Corporation

    Threat of New Entrants: Four major competitors, WalMart, Kmart, Target and Costco Wholesale dominate the discount retail industry. The threat of new entrants is low, as this small number of large firms has spent decades establishing their position in the market. While online retailers, such as Amazon.com, and smaller department stores do create a semi-competitive environment, there is no major threat as the entry barriers are high (there is major risk and expensive start-up costs) and small start-ups are discouraged from trying to penetrate the market. The lack of patents and government regulation allow the existence of small department stores in the industry, but their expansion is limited.…

    • 305 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Walmart History
    • 1136 Words
    • 5 Pages

    Walmart History

    References: Gregory, S. (2009). Walmart’s latest move to crush the competition. Telsey Advisory Group. Retrieved March 29, 2011 from, http://www.telseygroup.com/files/news/Time-090909.pdf…

    • 1136 Words
    • 5 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Sustanable advantage
    • 347 Words
    • 2 Pages

    Sustanable advantage

    3. Distribution and Information Systems: Walmart has killed this part of the retailing strategy. Retailers try to have the most effective and efficient way to get their products at a cheap price and sell them for a reasonable price. Distributing is extremely expensive and timely.…

    • 347 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Hbr Wal-Mart Case Study
    • 658 Words
    • 3 Pages

    Hbr Wal-Mart Case Study

    The ability to offer a wide variety of products and services is essential to their business model, however by expanding the number of product/services too much or too quickly, their variety can become a liability. Have a large variety of products/services is also expensive and can be unsustainable in an economy that is experiencing a recession.…

    • 658 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Wal-Mart in the Oligopolistic Market
    • 485 Words
    • 2 Pages

    Wal-Mart in the Oligopolistic Market

    With effective inventory management, low wages to employees, larger work force, pressure on suppliers to reduce costs, Wal-Mart ensures that the average cost is very low as compared to other competitors in the market. Wal-Mart would still reap profits, it being a preferred retailer for majority of the customers but would exert a pressure on firms that are not able to reap any profits due to high infrastructure costs, high procurement costs and a low customer base forcing them to exit the market.…

    • 485 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    B2B Ch 7-11
    • 599 Words
    • 3 Pages

    B2B Ch 7-11

    b. The unnaturally low price Wal-Mart is able to offer because of heavy reliance on inexpensive imported goods.…

    • 599 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Walmart Competitive Analysis
    • 1144 Words
    • 5 Pages

    Walmart Competitive Analysis

    |Achieving economies of scale |Rapidly expand geographical footprint as well as number of stores, variety of stores, and store sizes…

    • 1144 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    Case Study Wal-Mart
    • 1081 Words
    • 3 Pages

    Case Study Wal-Mart

    Evaluate the general environment of Wal-Mart using the framework in Chapter 2. What are the key opportunities and threats facing Wal-Mart? (This is the "OT" of a SWOT analysis)Wal-Mart 's builds its stores in towns with a population size of 5000-25,000 people. Wal-Mart has recently started to tap into the more populated city suburbs by building smaller less obtrusive stores in those regions. Wal-Mart targets every age group from infants to senior citizens. Wal-Mart 's geographically places it 's stores in rural less populated areas with very few employment opportunities. Wal-Mart tries to attract all income levels by selling brand name items along with generic brand items. Wal-Mart approaches its global market by evaluating market potential based on economic and political risk, growth potential, and availability of real estate for development. In countries that had became saturated Wal-Mart used acquisitions to acquire ownership. In markets that were not saturated and land was easily accessible Wal-Mart used organic growth. The technology that Wal-Mart uses to run their business is unmatched. They have a network of satellites that can track a person purchase and automatically refurbish those items from suppliers without any human intervention. Wal-Mart maximizes efficiency by using effective technology to gain a competitive advantage. Wal-Mart has grown into a global empire and has become the world largest private employer and the number one retailer in the world. Despite all of this success Wal-Mart still has a huge opportunity to grow. Wal-Mart continues to adapt to the ever-changing economy by remodeling their store and by placing the customer as their number one priority. Wal-Mart took advantage of its rural locations early on and gained a significant competitive advantage, now Wal-Mart is taking on the urban environment by placing stores in the outskirts of major metropolitan areas. At first local residents rejected the idea of having a Wal-Mart in their…

    • 1081 Words
    • 3 Pages
    Better Essays
    Read More

Related Topics