Walmart Stores, Inc.
Which strategic management concepts are useful in the analysis of this case? 1. SWOT Analysis
Walmart’s internal strengths and weaknesses and environmental opportunities and threads are: Strengths
Highly motivated and committed employees (Associates)
Top management involved on daily operations (street managers) Latitude price setting (allows more profitability in different locations) Technology oriented (Satellite system and logistic software) Alliance with suppliers (data sharing and loyal relationships) Various format stores for different segments.
Associates stock ownership linked to economy cycles.
Top executes flaunt millionaire salaries.
Complex operation and coordination of 1953 stores (enormous size) Cannibalize sales between stores.
International expansion (Emerging markets growth represent great demand) House brands expansion (Customers increasing acceptance to this products) Test new store formats and segments (innovation)
Opposition groups and bad media (small merchants out of business) Industry concentration (more competition affects profitability) Government sanctions (below cost selling)
2. Internal Value Chain
Walmart’s most important internal activities are:
-Logistics and operations: (primary activity)
Walmart has 40 distribution center which are 24 hours operated, have one million square feet, and equipped with computerized systems that are geographically located to generate important savings associated to logistics. -Partnership with suppliers: (support activity)
Walmart shares information electronically of daily sales data with suppliers to improve performance. Key suppliers located their own employees inside Walmart’s premises to manage products orders, reducing personnel and capital (inventory) costs.
-Sales point infrastructure: (primary activity)
Walmart high speed store openings rate compared with competitors and...
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