This website uses cookies to ensure you have the best experience. Learn more

Case Study Of Walmart

1408 words - 6 pages


Professor: Dr. Mary Flannery Teaching Assistant: Jia-Yuh Chen ECON 136 – Business Strategy February 27, 2006

The retail industry is dominated by few retail giants, with Wal-Mart competing in several retail categories. Wal-Mart competes against Kmart and Target in the general merchandise retailing; against Costco in the warehouse club segment; and against Kroger, Albertson’s and Safeway in the supermarket retailing. Competition among retailers centers on pricing, store location, variations in store format and merchandise mix, store size, shopping atmosphere, and image with shoppers. Further analysis provided by the following figure diagnoses the

...view middle of the document...

Wal-Mart achieves a cost advantage by controlling its cost drivers and relentlessly wringing cost efficiencies out of its supply chain. COMPLEMENTARY STRATEGIES To strengthen its competitiveness, Wal-Mart collaborates closely with suppliers with strong brand-name who are dominant in their category, who have full product lines, and who can bring in new and better products to retail shelves. Wal-Mart’s procurement personnel spends

considerable time meeting with vendors, understanding their cost structure, and learning how a vendor could cut down its costs in order to capture win-win relationships for both parties. To expand its geographic coverage, Wal-Mart’s domestic strategy is “backward expansion.” The company opens stores in small towns surrounding a targeted metropolitan and saturates each area before moving into new territory. International expansion involves a combination of new store construction and acquisition. As Wal-Mart enters foreign markets, it intends to “remain local” by customizing its offering to match the taste and preferences of local buyers and operating through the management of natives of the foreign countries.

Wal-Mart also employs simultaneous offensive initiatives on many fronts. Experiments in store layout, merchandise displays, store color schemes, and promotions are always under way. Wal-Mart also engages in preemptive strikes especially when it enters a new market by securing a dominant position in the geographic area and forcing smaller retailers out of business. SUPPORTING STRATEGIES Marketing and Sales: Wal-Mart meets customers’ needs with four different retail concepts: Discount stores, Supercenters, Sam’s Clubs and Neighborhood markets. Technology: Wal-Mart is a first-mover in upgrading and improving its technological capabilities. It uses computers, satellite, and information systems in communicating with vendors, electronically purchasing orders, tracking sales and inventory, identifying slow-selling items and squeezing costs out of the supply chain. Distribution Center Operations: Several labor-intensive tasks had been automated and cost-efficient system of conveyors, bar-coding and handheld computers have been utilized to continuously streamline distribution operations. 3

Sales Profits Number of Stores

1970 $31 million $1.2 million 32

2004 $256 billion $9.0 billion 4,906

CAGR 30.38% 30.00% 15.95%






success, Wal-Mart’s sales since it became a public company in 1970 to 2004

grew at a compound average growth rate (CAGR) of 30.38%, which is unprecedented growth. The company’s profit growth rate of 30% is exceptionally attractive and clearly shows the profitability and sustainability of its strategies. The increase in the number of stores is quite lagging and this is an indication of Wal-Mart’s expansion potential. Overall, Wal-Mart’s financial results indicate that the company is doing exceptionally well.

Strengths ♦ Cost advantages over...

Other Papers Like Case Study Of Walmart

Employees Job Satisfaction In Banking Sector Of Bangladesh: - A Case Study Of “Jamuna Bank Limited”

4175 words - 17 pages EMPLOYEES JOB SATISFACTION IN BANKING SECTOR OF BANGLADESH: - A CASE STUDY OF “JAMUNA BANK LIMITED” By Oishee Manee ID: 0820544 An Internship Report Presented in Partial Fulfillment Of the Requirements for the Degree Bachelor of Business Administration INDEPENDENT UNIVERSITY, BANGLADESH April 29, 2012 EMPLOYEES JOB SATISFACTION IN BANKING SECTOR OF BANGLADESH: - A CASE STUDY OF “JAMUNA BANK LIMITED” By Oishee Manee ID

The English Language In Turkey – A Case Study Of Linguistic Imperialism

1974 words - 8 pages Juan L. Costa S 1229656 1 December 2013 Words: 1629 Course: Globalization and Cultural Studies Mr. Looi van Kessel, M.A. The English language in Turkey – A case study of linguistic imperialism English is considered to be the world’s lingua franca. It is the most extended language in all kinds of international interactions, including trade, culture, and academia. This is considered to be a factual statement and not a normative one. Certain

Development, Problem, Prospects And Progress Of Entrepreneurship Development In Narayanganj Sadar Upazilla: A Short Case Study

4916 words - 20 pages Development, Problem, Prospects and Progress of Entrepreneurship development in Narayanganj Sadar Upazilla: A Short Case study Entrepreneurship - the process of starting a business; typically a startup company offering an innovative product, process or service is termed as entrepreneurship. The entrepreneur perceives an opportunity and often exhibits biases in taking the decision to exploit the opportunity. Entrepreneurship can be defined by

The ‘Christianization’ Process Of The London Missionary Society In 19th Century South Africa: A Case Study Of Bethelsdorp And Thornberg

8965 words - 36 pages . While developments through the 18th century have been reasonably thoroughly documented, our knowledge of the 19th century is patchy because little research has been done on this period. RESEARCH TOPIC: MONIQUE CLASSEN CLSMON002 The ‘Christianization’ process of the London Missionary Society in 19th century South Africa: A case study of Bethelsdorp and Thornberg Contents PLAGIARISM DECLARATION 2 ABSTRACT 3 INTRODUCTION 4 THE

Case Study Of Diageo Company

2747 words - 11 pages is the detail provided of the adidas company how they applied MS model. Machinery As a part to initiate and implement better technology, such as computer stitching and high cutting frequency and automated production line across factories and to provide technical training to the staff across the factory. Make up Being a large organization the company has also made the policies to maintain its cutler

Example Of Business Ethics Case Study (Indonesian)

926 words - 4 pages Case Taken from: Jennings, Marianne Moody. 2008. Business Ethics: Case Studies and Selected Readings. United State of America: Cengage Learning The Finance Club at Harvard University is a prestigious organization for Harvard MBA students. The student members have the opportunity to interact with public officials like Senator William Proxmire and business executives such as Bruce Wasserstein. The Finance Club also serves as a network for

Case Study Forecasting The Adoption Of Ebooks

387 words - 2 pages Case 1 Ebook Date: 3/9/2013 Case 1: Forecasting the Adoption of E-Books Product | p | q | Market Structure (wa=0.3) | Product Characteristics (wb=0.7) | Weighted Numerical Score | CD player | 0.055 | 0.378 | 5 | 5 | 5/20.4=0.245 | Cable television service | 0.100 | 0.060 | 7 | 3 | 4.2/20.4=0.206 | Home Personal Computer | 0.121 | 0.281 | 4 | 6 | 5.4/20.4=0.265 | Cellular telephone | 0.008 | 0.421 | 3 | 7 | 5.8/20.4=0.284 | Weighted

Walmart Culture Change

3823 words - 16 pages costs that they treat their employees like disposable tools. It is no wonder why the culture of Walmart is suffering. According to Berfield (2012), “In 2009, Walmart agreed to pay $40 million to settle a Massachusetts class action by 87,000 employees for the off-the-clock work and shortened breaks” (p. 55). This case is not the first time Walmart has wrongfully treated workers to cut costs. Walmart management denies the opportunity for

Walmart Vs. Amazon

503 words - 3 pages the largest e-commerce retailer in the world, without a physical location. Amazon and Walmart both sell electronics and general merchandise, which is the most prominent area of competition between the two companies. It was said e-commerce is estimates indicate that e-commerce could account for 15-20 percent of total retail sales in the U.S. over the next ten years, as more and more customers prefer to purchase items online. In this case


682 words - 3 pages wallmartWAL-MART GLOBAL STRATERGY Wall mart has its four large scale formats: * Wal-Mart Stores * Wal-Mart Supercenters * Sam's Club * McLane's Company * Wal-Mart International During late 1980s wall mart started its expansion in Mexico, Canada, Argentina, Hong Kong, and Brazil. The company considered that with a prospective of market globalization, the brand, “Wal-Mart,” could be a competitive advantage in many countries


585 words - 3 pages scheduling system may bring only small changes now, what happens if the corporation continues making similar small changes to the detriment of its employees?   What will those incremental changes do to the employees’ morale in the long run? 1.   What is the ethical dilemma facing Wal-Mart in this case?   Do Wal-Mart’s associates also face an ethical dilemma? If so, what is it? Wal-Mart is trying to implement the Kronos system which will automate

Related Essays

Case Study 22 Walmart

576 words - 3 pages I believe the viewpoint of the author is that he believes the founder of Wal-Mart’s beliefs are still visible but due to the demand to be more profitable it has lead them to many problems. The author lists several lawsuits that Wal-Mart was found guilty which include child and labor laws, sexual discrimination, off the clock work, use of unions, health benefits, and use of illegal aliens which many stem around Wal-Mart trying to cut cost. I also

Analysis Of Case Study On Salix Pharmaceuticals

722 words - 3 pages Analysis of Case Study on Salix Pharmaceuticals, Inc Founded by two mutual acquaintances and former staff members of California Biotechnology Inc. (CalBio), Lorin Johnson and Randy Hamilton set out to build a company specializing in a specific area of need, such as inflammatory bowel disease. Their search throughout the international landscape was focused on the chemical compounds that would be the foundation for therapeutic drugs that serve

Case Study: The Business Strategies Of Qvc

2536 words - 11 pages Case Study: The Business Strategies of QVC Group 2: Michael Kenlan Karen Maxwell Brian McKearney Tara Murphy Zach Smith MIE 480, Spring 2010 Dr. Washington Abstract John Segal founded QVC in West Chester, Pennsylvania in June of 1986, two years behind the launch of its predecessor, the Home Shopping Network. Despite this later emergence onto the cable scene, QVC surpassed its competitor quickly and has

Walmart Essay

255 words - 2 pages of goods, but also services. Most Walmart stores have a variety of services that are provided, from a pharmacy, to a photo studio, hair care salon, etc. Business as an occupation is the set of skills and abilities that an organization has that allows them to create value in the goods and services that they offer. In the case of Walmart, a highly efficient set of skills and abilities exist. The company is set up to encourage efficiency and mass