Wal-Mart Case Answers

Topics: Strategy, Wage, Strategy pattern Pages: 2 (374 words) Published: April 8, 2014
1. Wal-Mart’s strategy was to buy low, stack high, and sell cheap. This strategy allowed them to focus on minimizing costs and generating revenue by selling discounted items. This allowed Wal-Mart to become a leader in discounted retail generating nearly 200 billion in sales from 1988-2000.

2. His strategy of keeping costs low influenced various sectors within the company. Early on, Walton was extremely frugal and would do anything he can to save money. This often meant sharing hotels or walking to a place instead of taking taxis. This mentality carried on throughout the years and became the backbone into most of Wal-Mart’s operations. Allowing the company to bargain with suppliers and eventually use China as an importer to keep costs at a minimum level. Wal-Mart also offered a bigger variety than most competitors and reduced stock outs by managing product assortments by store rather than region. They not only focused on offering everyday low prices, but they kept low wages and they did not unionize. This has allowed them to keep prices low but has also caused them to have a high turnover employee rate over the years.

3. In 2003, US immigration agents raided Wal-Mart headquarters and 60 stores. They arrested over 300 illegal workers and was subsequently sued by some of the arrested workers. The problem was later settled in court and all charges were dropped shortly after.

Some of the biggest challenges that Wal-Mart faces today are things like international Retailing. As they expand internationally they struggle in coming up with the right growth strategy. In search of new growth strategies, Wal-Mart has even tried pursuing different strategies, such as dabbling in trendy fashions, offering organic foods, and remodeling stores to look more upscale, only to have them backfire.

4. Some of my key recommendations to addressing this struggle would be to focus on what they are great at. Focus on what already works and expand that strategy. Most...
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