Walmart case analysis
For the millenials and the middle class, Walmart is their favourite shopping destination. According to Patrick Hayden et al the retailing industry adopted the style of discounting on its merchandise after the Second World War.
This will have a connotation that customer loyalty in Wal-mart is at large because of the low price but not because of the quality of their products.
Walmart discount stores case study
Trends indicate that operating expenses have been growing at a rate of In regard to threats of new entrants, Wal-Mart has been constantly in the news for acquisition of other small retail shops in view of its expansion. Nevertheless, Wal-Mart did drive local merchants out of business when it opened up stores in the same neighbourhood. In this regard, there is a need of a strategic change which enables Wal-Mart to sustain their competitive advantage in the market. Sustainability in Discount Retailing Wal-Mart When it does, its growth will start to slow down and the company will need to turn its strategic attention to diversification for future growth. The challenge is how to run more stores with less operating expenses. Not all ventures were successful, however: the UK, south America and China operations continue to be rewarding but Wal-mart pulled out of Germany and South Korea with heavy losses. So, overall Walmart has grown better for America and now it is targeting the same success abroad. Wal-mart owns 40 general merchandise distribution centers, 38 grocery distribution centers, 7 apparel and shoes distribution centers, 12 professional services and specialty distribution centers, 2 import distribution centers and 3 distribution centers that support Walmart. Wal-mart's supply chain management was not simply an IT system, however, but involved company control and efficiencies in every aspect of its operations. The Resource Based View RBV explains competitive heterogeneity based on the premise that close competitors differ in their resources and capabilities in important and durable ways. Matusitz, J. All job openings should then be posted by the managers and should be communicated well with the employees.
Wal-Mart has become a capability competitor. Apart from it, United Kingdom hadCanada and Brazil stores operational in It is said that Wal-Mart aggressively maintains unique distribution systems, lower labor costs, which give the company more edge than their competitors.
Walmart operations management case study
Customers have unique needs and Walmart is using a variety of services to fulfil these unique needs. Indeed, certain actions should have been done to avoid this matter from happening. Logistics Management 1. These discount stores are smaller in size compared the super-centers. Its competitive advantage has kept growing stronger with time and since the brand is now concerned for its social image, it is investing in employees, social responsibility and community welfare. In terms of employee and promotion issues, such as those among women and minorities, this has also been observed in Wal-Marts initial operations. Thompson, A. Wal-Mart Stores, Inc. Wal-mart suppliers' access to Wal-mart sales figures and to its technology encouraged openness of the part of suppliers too: both Wal-mart and suppliers benefited. Without this deal, the legal barriers would have made entry difficult for Walmart. With few locations left in the U. What Risks?
The company's price advantage extends to groceries, particularly in the large footprint format. If the company continues to take advantage of its buying power, Wal-Mart can expect to lower its cost of sales.
Warehouse are automatically replenished to optimal levels through continuous cooperation with suppliers. Wal-Mart makes the consumer addicted coming to its stores by convincing them the prices are lower than in the other stores by selling itself cheaper by advertising that we have lower prices than anyone else' and placing a opening price point'.
The brand has led the U. A company can outperform its rivals or competitors in the market only with superior management and efficient control creating a difference from the others which eventually attracts customers.
Indeed, Wal-Mart was named "Retailer of the Decade" by Discount Store News inand on several occasions has been included in Fortune's list of the "10 most admired corporations.
From this analysis, it has been stressed that the success of the company is actually derived from multiple resources. Expanding into states where it had no stores; 2.
Walmart update 2011 case solution
The future also looks bright for Wal-Mart, especially if it is able to strike a comfortable balance between increasing its profits and recognizing its social and ethical responsibilities. What Risks? How is this achieved? In this way, using price leadership and technological innovation, the brand has created a strong retail system that is more effective and efficient than the competitors. Much emphasis had been laid on strategic positioning like variety based positioning, needs based positioning and access based positioning. Race Cowgill, The SWOT analysis of Wal-Mart reveals that it is most powerful retail brand, reputation for money, value, commitment, and provides wide range of products. So, Walmart built multiple store formats. Clear, specific and definite performance indicators that will make an employee eligible for promotion should also be established initially before the positions are filled in. Wal-Mart owns the largest and most sophisticated computer system in the private sector.
based on 21 review