Walmart Case Analysis

Walmart Case Analysis
1. Industry Analysis a) Brief overview of Wal–mart stores Wal–Mart Stores, Inc. is both a domestic
enterprise, as well as a national discount retailer. They operate retail stores domestically in the US
and various international markets. Wal–Mart operates on an "Every Day Low Price" philosophy
because they are able to maintain their low price structure through complete expense control. With
this philosophy they have proven to be extremely profitable domestically. Their primary task is
buying from suppliers at a low cost and then reselling the goods to customers at a low price, to
achieve their company philosophy of low prices and great customer service. Being in the retail
industry, Wal–Mart can choose from many suppliers that provide ... Show more content on
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No competitor can beat Wal–Mart 's "every day low price" (EDLP) so that gives them a distinct
advantage over their rivals. c) The most important force to wal–mart 's near term future is the
bargaining power of suppliers with all the many pricing philosophies including "Every Day Low
Price" (EDLP), "Rollback", and "Special Buy" this ensures that customers always have a feeling that
they are getting low prices the day they stop feeling like that that will be the beginning of the end to
wal–marts success and dominance, because of wal–marts ability to offer low prices that is why they
are able to be profitable and also seem to be so ahead of their competitors. 2. SWOT analysis A)
.Evaluating Wal–marts situation in terms of the SWOT Analysis, where will view where its
strengths, weaknesses, opportunities and threats in terms of its place in the retail industry. Wal–mart
being such a dominant force has elements which plot and are willing to take it down given the
chance. Lets look at what makes wal–mart be such a dominant force and would break wal–marts
dominance both here and globally by analyzing its position in terms of the SWOT, Lets start by
looking at the first part of the SWOT analysis which is the strength of the company. Strength 's –
The first
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Loblaw
Introduction
Loblaw Companies Limited's business strategy of "driving down costs through size and operational
efficiencies, and differentiating both its products" has enabled the firm to gain 32% of the food retail
market in Canada. Despite this success, Wal–Mart is looking to enter into the mature food retail
market with the introduction of their SuperCenters (combining grocery and nonfood items). Wal–
Mart is a forceful competitor, and the Every Day Low Prices strategy of Wal–Mart's Supercenters
could wean away traffic from Loblaw's various value banners. The objective of this paper is employ
a PEST analysis and Porter's 5 Forces Analysis to access the Canadian food retailer industry to
decide if Loblaw should continue its current ... Show more content on Helpwriting.net ...
When Loblaw introduced President's Choice (PC) private label it was a rare resource that granted
them temporary competitive advantage in the food retail market. It is a rare resource; but why is it
only temporary. It's a strong brand. Loblaw's President's Choice private label itself could not confer
any advantage for the company if it was not organized to capture the value from them. Loblaw's
senior management team that averages 18 years of experience has created systems, processes,
policies, organizational structure, and culture to be able to fully realize the potential of the
President's Choice brand. Good Incentivized by stock options senior management not only pays top
wages and benefits to all employees to create a great working culture, they continued to utilize the
competitive advantage the President's Choice brand to increase customer loyalty. President's Choice
Financial program provides Loblaw's consumers with financial services, such as everyday banking,
loan, and investments. Also, they developed brand loyalty through a redemption points system,
where consumers could trade their loyalty points for free groceries. These added values are what
will keep Loblaw's strategy a differentiator.
The seasoned and experienced management team, as well as performance based pay has made the
culture at Loblaw to constantly strive to improve the private label value proposition, which in turn
makes it hard for competitors to imitate the brand loyalty PC brand

What Are the Key Factors Allowing Wal-Mart to Position...
Wal–Mart, first opened in 1962 by Sam Walton in Rogers,Arkansas, has become the largest retailer
in the world, with almost 10000 store locations and approximately 2 million employees worldwide.
Despite the death of Sam Walton in 1992, Wal–Mart continues to be successful, reaching record
annual sales of $437 billion in 2012. Each week, over 100 million customers visit a Wal–Mart store.
Wal–Mart Stores have stood at #1 position on Fortune 's 500 and Global 500 lists for the year 2012
as CNN reports. Sam Walton founded the company in 1962 with a simple goal: Offer low prices to
everyone. His notions of hard work and thrift continue to permeate Wal–Mart today. In 1969, the
company officially incorporated as Wal–Mart Stores, Inc. And in the ... Show more content on
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The only acceptable delivery record is 100% on–time, and if they could get better than 100%."
Massive buying power Wal–Mart is providing its customers with everyday low prices hence giving
them value for their money. Wal–Mart is able to provide low prices as it has massive buying power.
Furthermore, there are tough negotiations with buyers helping it drive down costs. Operational
excellence The philosophy behind operational excellence is high expectations. High expectations
lead to high productivity, high productivity means efficient processes, efficient processes means
lower costs. These lower costs mean more profits and savings which enable it to open more stores
making it more financially stable and enabling it to achieve economies of scale. Greater scale in turn
means lower prices which are then passed on to the consumers. Strong logistics & distribution
network Besides the low prices, the products are made available to consumers with minimal
inconvenience. Wal–Mart has developed a strong logistics and distribution network and following
the hurricane Katrina it was able to supply its stores with products quickly when other stores were
out of stock for many items. It uses an inventory management technique called cross–docking of
products in its distribution centers which helps in reducing the inventory costs as the time inventory
is piled up in warehouses is reduced. Wal–Mart has its own

Wal-Mart: The High Cost Of Low Price
The documentary on Wal–Mart: "The High Cost of Low Price" was about how Wal–Mart can charge
low prices for their products compared to other competitors. Wal–Mart would place their business in
areas where there was no big retail competition. However, there were a lot of "mom and pop" stores,
including H&H Hardware in which they discussed in the film that was in business for over forty–
three years. As soon as Wal–Mart entered into their community, H&H Hardware and other small
family owned business had to close their doors because Wal–Mart would force every out. When
there is no competition in the communities this gives Wal–Mart the advantage to charge low prices
because they know everyone will buy from their stores because there is no other ... Show more
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They rather have their current staff work overtime, however they won't pay them for the extra time
spent working. Wal–Mart is bringing in over 100,000 million in sales. Conversely, in the
documentary the CEO Lee Scott said how important personal development was to him, but he only
gives his employees one dollar raises in over a four–year spam. Wal–Mart also discriminates against
women and people of color. "More than 70% of Wal–Mart's United States workers are women and
most earn less than federal poverty" (http://www.mccc.edu/pdf/eng024/Class%206–7/class%206–
7%20article%202%20high%20cost%20of%20low%20prices.pdf) Most of Wal–Mart's products
come from overseas in developing

Company Introduction and Analysis Paper
Company Introduction and Analysis Paper on Wal–Mart By: Team A ECONOMICS FOR
BUSINESS I – ECO/360 June 13, 2005 Abstract Wal–Mart has grown to be one of the biggest
corporations in the world, employing 1.3 million workers worldwide in 2003 in over 4,300 stores
with sales around $256 billion. They sell everything from clothing, tools, toys, electronic goods,
appliances and groceries. A major force behind its success was the vision, enterprise and daring of
its founder, Sam Walton. He was the one who started the "super center" retail event. He also
implemented a supply chain strategy that required stores to reorder stocks only as needed instead of
keeping huge amounts of merchandise in warehouses. Mr. Walton also ... Show more content on
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Many stores are open twenty–four hours a day and remain busy a majority of the time. Like most
retailers, the Christmas season is their busiest. The advantage they have over many retailers is that
they offer layaway services to those who choose to prepare ahead of time for the holiday season,
allowing many customers the opportunity to begin making payments several months in advance of
the season. They often alternate their product selections by limiting the brands used and brand
selection available in their stores. Only the most popular brands and selections are available for each
market, as is the case for their Sam's Clubs. Many times, you will not find the same products
available from week to week, because they rotate the products available based on availability and
season. Say you go in to Sam's and they have a Capri–Sun four (4) case pack available for $6.99.
Two weeks later, you go and now they have a Kool–Aid Coolers four (4) case pack available for
$6.99. The product selection has varied based on the availability of similar products that they were
able to get at the lowest price. They strive on providing the lowest possible price, which means a
variance in the product (brand) selection available. Product selection availability is their bread and
butter. They have their own clothing line, Faded Glory and product line, Sam's Choice. Their fresh
meat selections are of the highest quality and the prices are

Andrew Morgan The True Cost
The True Cost is a very effective documentary, the film was released in 2015 and was written and
directed by Andrew Morgan. The film was produced by Michael Ross and the distributing company
was 'Life Is My Movie Entertainment'. The purpose of this documentary is to bring the public's
attention to the untold horrors of the clothing industry. The film explains the whole process from the
very beginning in the cotton fields and to the very end with the products in the consumer's hands.
The producer explores the horrible effects the industry has on the environment and the workers in
the garment factories where their daily wage is only around $3.00 per day. The documentary
explains how much the industry has changed since the 1960's and how bad the ... Show more
One of the most important ideas is that though the increasing demand and materialism, the low–
wage worker will always be in demand because it will always be cheaper to outsource that work to
third world countries. Another argument that the film presents is that these countries that are now
producing our clothing do not have any rules or regulations for their employee's safety nor do they
have any regulations for polluting the environment thus creating many health problems in countries
where the people have no power to do anything about these issues. One more important argument
that the film brings attention to is if mass media and consumerism keep increasing, that the effects
on the environment and the wellbeing of the factory workers in these developing countries will
never get any better, we are only going to make things worse for everyone but these massive
clothing

Strategic Management Of Walmart And Nordstrom
Comprehensive Learning Assessment: 2
Submitted By
Pratigya Adhikari
BUS 525: Strategic Management in a Globalized Economy
Submitted To
Professor:
Dr. Stephanie Hoon
Professor: Mahendra Shrestha
Sept 1, 2016
Analysis of Strategic Management of Nordstrom and Wal–Mart Abstract
The study shows the strategic management of Wal–Mart and the Nordstrom, both are the retailer of
United States but one is the low cost provider and another one is upscale fashion merchandise as
well as leader in customer service. In this paper, we will be comparing the mission statement,
competitive strategy of Nordstrom and Wal–Mart by their price, value, growth strategy, customer to
employee satisfaction, positioning and long term sustainability. Introduction:
Wal–Mart Stores, Inc is the largest and leading retailer in the world which was founded in Arkansas
in 1962. Recently Greg Foran is Wal–Mart U.S. President & CEO who has been involved in serving
people of 11,500 stores under 63 banners in 28 countries and e–commerce sites in 11 countries to
shop anytime and anywhere online at Walmart.com, through mobile devices and in stores including
various items from grocery and entertainment to sporting goods and crafts. An unwavering ... Show
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It shows that the company focuses on pleasing the customers and providing them a compelling
shopping experience which describes the company being a leading fashion specialty retailer. We can
learn that they believe in providing best possible services, selection, quality and value to the
customers at the best price as through compelling shopping experience. The statement clearly shows
that the company is customer oriented and is fully committed to provide quality service and time to
its customers (Nordstrom, Inc., 2016). Nordstrom thinks customer services as part of its culture as it
is focused on building customer loyalty and customer

Walmart Report
Introduction In this report, we would present a case study of strategic audit for Wal–Mart in China.
We would begin by discussing the strategic posture, current performance, corporate culture and top
management of Wal–Mart in China. Then, we would analyze the external environment of Wal–Mart
by performing the PEST analysis and Six–Forces Model analysis. After that, we would analyze the
internal environment of Wal–Mart by performing analysis on each of the corporate function. Based
on the analysis in the external and internal environment, we would be able to present the SWOT
model and identify the strength, weakness, opportunity and threat for Wal–Mart. From the SWOT
analysis, recommendations would be made to Wal–Mart. At last, we would ... Show more content on
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Strive for Excellence The associates share an exceptional commitment to customer satisfaction.
Cultural Stories To build the corporate culture among employees, Wal–Mart has told five culture
stories such that the employees can recognize and share the Wal–Mart values easily. Here are the
five culture stories related to the corporate culture in Wal–Mart: The Sundown Rule The rule means
that the associates would strive to answer requests by sundown on the day they receive them.
Exceed Customers ' Expectations At Wal–Mart, associates would provide the best service which
exceeds the customers¡¦ expectations. Wal–Mart receives letters daily from customers praising
individual associates for giving exceptional service. Sometimes associates write to express their
appreciation for services as simple as a smile, an associate remembering their name or someone
carrying out their purchases for them. All these show that the associates have given exceptional
service which exceeds the customer¡¦s expectations. The "Ten–Foot Attitude" The attitude
encourages the associates to look at the customer¡¦s eyes and smile to them when the customers are
within the 10–foot of the employees. The associates would also take the initiatives to provide help
when necessary. Every Day Low Prices Wal–Mart would try the best to cut the cost and pass the
saving to customers. It is

Wal Mart : The High Cost Of Low Price
In 2005, Robert Greenwald released Wal–Mart: The High Cost of Low Price, a motion picture that
divulges how Wal–Mart Stores, Inc., a wholesale department store established by Sam Walton in
1962, absconded from its chasten inaugurations, to ultimately progress and develop into a principal
vendor of America, and soon afterwards the vastest transnational conglomerate on the planet, once
one grounds their statistics on revenue. However, Greenwald undoubtedly affirms that the policies
Wal–Mart has emplaced have not solely been detrimental to the already austere American economy,
but also to the welfare of their personnel. Furthermore, Wal–Mart: The High Cost of Low Price
congregates on various sociopolitical disputes that validate how Wal–Mart ... Show more content on
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Furthermore, anchors such as Bill O'Reilly were able to produce societal awareness to explicit
national concerns and tribulations (Ginsberg et. al). Nonetheless, these broadcasters framed the
subject matter in such a degree, where the consideration of individuals only remained at solitary
outlook of the anecdote, and not ever proceeding to exploiting this dilemma to bare the congregation
of caricatures that Wal–Mart Stores, Inc. is intrinsic in (i.e. their sweatshops in China). Although
unintended, Wal–Mart: The High Cost of Low Price illustrated how the media exemplifies the term
'selection bias,' and given that it was immaculately primed, while the audience's sympathy would
perceptibly be far more concerned with a sexual exploitation incident, it rapidly developed into
constructive exposure for Wal–Mart Stores, Inc. (Lafer 125). It is of no clandestine that Texas has an
individualistic–traditionalistic political culture. Additionally, by virtue of this, corporate welfares
have dictated Texas procedures (Champagne and Harpham). Greenwald's Wal–Mart: The High Cost
of Low Price dexterously validates how Texas's anti–liberal partisan archetypal (i.e. truncated tariffs,
trifling amenity and vitriolic antigovernment dogmata's) has at present, appropriated over America's
federal procedures (Ennis 53). Furthermore, in his dissertation, Ennis impertinently asserts that the
authority of the Texas's

Walmart Inc Case Study
WAL–MART CASE STUDY ANALYSIS
SWOT
STRENGTH
▪ Information Technology :
They have a strong information technology system as implemented EDI, Information system, UPC
at POS, Satellite system, Pick to light system, Vendor management inventory system which was not
implemented by any other competitor. ▪ Supply Chain (Strong). They had a long term relationship
with the supplier as there was no non sense negotiator as they eliminated the manufacture
representative from negotiation with the suppliers. ▪ They were focused on Human resource and
development as associates were considered a key to success for Wal–Mart.
WEAKNESS
▪ They were not globally known so it would be difficult for them to create a brand name globally. ...
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Further Wal–Mart was providing latest technology facilities to their major suppliers which helped in
forecasting and planning. So the suppliers might loose their business if they switch to other. ▪
Supplier's group products are not differentiated as there were many other suppliers available in the
market who were producing the same category of products. ▪ Industry is an important customer of
supplier group because their revenues are dependent on the sales of the retail stores.
Maintaining Competitive Edge
Wal–Mart needs to identify and nurture the primary core competency that fueled their growth:
fulfilling customer needs with a wide spectrum of products at everyday low prices This competency
is the product of the aggregate of competencies across individual skill sets and organization
boundaries: Wal–Mart is a leader in channel management, inventory control, distribution and
customer service. This is a result of the company 's ability to coordinate a complex information
management and distributing network and to efficiently manage supplier relations, through the use
of new technologies and the seamless flow of information. Wal–Mart was a leader in Uniform
Product Codes scanning. For the two years that it took K–Mart to implement their system, Wal–Mart

had, at least temporarily, a competitive advantage that was both valuable and rare.
Another characteristic that is valuable and difficult to imitate: a loyal and

Wal-Mart: High Cost Of Low Prices: Movie Analysis
In the iniquitous movie, Wal–Mart: High Cost of Low Prices their statistics show very little of what
is currently on in our Wal–Mart stores. The movie is blatantly disregarding the fact that Wal–Mart
has 4,177 stores in the US and employs one percent of American's people. What was your reaction
concerning the movie? Is Wal–Mart a monopoly? Please give examples if Wal–Mart is or is not.
What were some of the devices the producers at BRAVE NEW used in the movie to get a reaction
from their viewers? My response towards the bias of the movie is that most of the movie's statistics
do not add up. As I have several friends who are working or planning to work at Wal–Mart. The
majority of the movie was misinforming those who were watching the movie. Think about this;
would a corporation like Wal–Mart truly try to misuse their employee's trust causing them to lose
countless and millions of dollars because they do not ... Show more content on Helpwriting.net ...
First of all Wal–Mart has many firms and few competitors since it owns Sam's Club. Wal–Mart has
majority of the same products just at lower prices. Wal–Mart isn't unique in its own way seeing as
they are many other supermarkets for example: Fred Meyers, Sears, Target, Kohl's, and Costco are
all supermarkets. Wal–Mart is more of an Oligopoly than any of the other structures. In Wal–Mart:
The High Cost of Low Prices the movie uses many diverse ways to achieve the reaction of those
who are watching the movie. They chose specific employees with stories to achieve sympathy
through the fact that they have small children at home and they couldn't work because of that and
how they have to use food stamps to feed their family and their bosses calling them racial names.
When they want to emphasize one of their examples why Wal–Mart is so bad they start playing
ominous music and have their scene go into black and white. Once or twice in the movie they cut off
the Wal–Mart reprensitives when they were

Wal-Mart: The High Cost of a Low Price Essay
Wal–Mart: The High Cost of a Low Price Wal–Mart represents the sickness of capitalism at its
almost fully evolved state. As Jim Hightower said, "Why single out Wal–Mart? Because it's a hog.
Despite the homespun image it cultivates in its ads, it operates with an arrogance and avarice that
would make Enron blush and John D. Rockefeller envious. It's the world's biggest retail corporation
and America's largest private employer; Sam Robson Walton, a member of the ruling family, is one
of the richest people on earth. Wal–Mart and the Waltons got to the top the old–fashioned way: by
roughing people up. Their low, low prices are the product of two ruthless commandments: Extract
the last penny possible from human toil and squeeze the last ... Show more content on
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Please read Barbara Ehrenreich's recent book, Nickel and Dimed. In her brilliant book she reveals
the misery of working for a big box retailer and the impossibility of living in America on poverty
wages. She spent time working at Wal–Mart in St. Paul, Minnesota and struggled to survive. Read
her account of the anti–union propaganda that Wal–Mart espouses. Wal–Mart is no friend to the
working poor. Wal–Mart and other big box retailers are destroying the cultural landscape of
America. As Ehrenreich states "wherever you look there is no alternative to the megascale corporate
order, from which every form of local creativity and initiative has been abolished by distant home
offices." Wal–Mart is a key player in the cultural homogenization of America. It is impossible to
"think outside of the big box." Everywhere you go in America you find KFC, Home Depot, Best
Buy, Circuit City, Burger King, etc... People are fighting Wal–Mart and are winning. For more info
go to: www.walmartyrs.org www.walmartwatch.com www.thenation.com/doc.mhtml?
i=20020304&s=hightower The misguided young man who wrote the pro–Wal–Mart editorial needs
to ask himself if he really needs most of the products that Wal–Mart sells. Are they really necessary
for survival? Probably not. We must break the chains of corporate domination that are strangling
American democracy and spreading misery across the world. We must break our addiction to
senseless consumption that

Wal-Mart Swot Analysis
Executive Summary Wal–Mart has grown into one of the largest discount retail stores in the world
and has proven that the type of operation that they have is successful and effective. Although they
are the industry leader, in the recent years their sales growth rate has not experienced such of an
increase. The decrease of the slowing growth rate from their previous double–digit growth has
begun to develop problems and serious concern for the company. They are now faced with the
attempt to understand the symptoms and causes of the problem and how to regain their growth
strength. Internally analyzing with the VRIO system, Wal–Mart tends to still prove their strength.
One of their largest strengths is the distribution system that they ... Show more content on
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Organization.....................................................6 2.2.
External..............................................................................6 2.2.1. Porter's 5 Forces Model of
Threats...........................................7 2.2.1.1. Threats of Entry .................................................7
2.2.1.2. Threat of Substitutes ...........................................7 2.2.1.3. Threat of
Suppliers.............................................7 2.2.1.4. Threat of Buyer ................................................7
2.2.1.5. Threat of Rivalry ...............................................8 2.2.2. Positioning Grid
.............................................................8 3. Strategic Options
........................................................................8 3.1. Option
1........................................................................8 3.2. Option 2
........................................................................8 4. Strategic Option Evaluation
..........................................................9 4.1. Strategic Evaluation of Selective Expansion
...........................9 4.2. Strategic Evaluation of Education Investment ........................9 5.
Recommendations and Action Plan ................................................9 5.1. Recommendations and
Action Plan: Education Investment.................9 6. Competitive Advantage
...............................................................10 6.1. Temporary
....................................................................10 6.2. Sustained
......................................................................10 6.3. How is it measurable?
......................................................11 7. Managerial Implications
...............................................................11 8. References
............................................................................12, 13 1. Mission and Objective In 1962, the birth of
regional discount stores occurred, including Wal–Mart, which grew to be one of the world's most
successful retailers

Wal-Mart Case Review
BUSI 514
Operation Management
Professor Kipley
Alfie(ZHEN) Zhang
Wal–Mart Case study
Background
Sustainability standards for supplier
Wal–Mart disclosed its sustainability standard to all Wal–Mart suppliers in the world in 2008. It
requires Wal–Mart Supplier take more environmental and social responsibilities. To do so, in order
to maintain its competitive quality image of Wal–Mart products. With growth slows down in U.S,
Wal–Mart focus on expansion in the world, especially in China.
Executive Summery
Wal–Mart Company Strategy
"Save people money so they live better"
In 2008, Wal–Mart has new senior management team change. The new team is facing the challenge
of expansion in China in a sustainable way. This case study ... Show more content on
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They are those local suppliers that Wal–Mart depends on.
Distribution difficulty
Due to lack of the transportation of infrastructure, it takes from 2 days to 4 days from Shen Zhen
Distribution center to other major cities. It makes Wal–Mart react slowly to consumer demand and
its own possible shortage. It puts more damage risk when products are on the road. Since lack of
productivity of Wal–Mart's suppliers, any loss of products on the road will cost short period supply
shortage in Wal–Mart retail stores.
Wal–Mart sub–contract out its distribution to Chinese local logistic companies. In China, logistic
industry is highly competitive that most of the trucks are over–loaded. Not alike California, the
freeway maintenance and usage fees are include in state sale tax, Chinese have to pay for the
highway system when trucks get on the freeway. It cost proximately 100 dollar per 1000 miles. It
limits Wal–Mart trucks fleets' coverage range. Also, truck fleets vehicles have a high age and low
technology level, and it leads higher air pollution
Since Wal–Mart has "90 days no question return policy" and high return rate of Chinese suppliers,
almost 200 pallets per week of return products put pressure on Wal–Mart's inventory and

distribution center.
Opportunities in China
According to McKinsey Global institute, China's

Critical Analysis of Internal Resources and External...
Critical Analysis of Internal Resources of Wal–Mart and External Environment.
External Environment
We have used Porter's five forces on the discount retail industry to understand external
environment(Porter, Michael E., Competitive Strategy(1988).
1. Threat of new entrants: Low
a. Highly price competitive nature of the discount retail industry with already established players
vying for market shares forbids new entrants. High entry barriers due to huge capital investments
and need for economics of scale.
b. Incumbents already have strong and trusted supplier network which couldn't be replicated by new
entrants
c. Wal–Mart by its scale of operations drive cost and price lower which can't be replicated by new
entrants
d. Wal–Mart possess ... Show more content on Helpwriting.net ...
Price–sensitive buyers coupled with low or nil switching cost provides high bargaining power of the
buyers.
b. Brand differentiation and product differentiation in the consumer durable industry is les leading to
convenient shopping.
Internal Resources
Below is an analysis based on resourced based view model (RBV) which will help to determine the
sustainability of core competencies(Peteraf, M. A. (1993))
Competency Valuable Rare Inimitable Non–Substitutable Conclusion
Deep Focus of technology in supply chain practices Yes No No Yes Competitive parity
Ability to pull demand to generate large sales volume Yes Yes No Yes Temp. competitive advantage
State of the art logistics and return logistics system Yes Yes No Yes Temporary competitive
advantage
Decentralized Operation Yes Yes Yes No Temporary competitive advantage
Shared Beliefs, Culture and Values Yes Yes Yes Yes Sustainable competitive advantage
Human Resource and employee empowerment Yes Yes Yes No Temp. competitive advantage
General Management Policies Yes Yes Yes Yes Sustainable competitive advantage
Even though at an individual level, core competencies of Wal–Mart might offer only a temporary
competitive advantage but in unison they form a sustainable core competency driving revenue
growth and profitability. Scale of operations along with capital investment in integrated supply chain

coupled with a strong logistics system gives Wal–Mart necessary bargaining power over suppliers.
Strong general management

Wal Mart 's Marketing Strategy Essay
Wal–Mart dominates the American retailing industry due to a number of factors (Smith & Young,
2004). Its business model has been very effective in beating the prices of its rivals. Wal–Mart has
made strategic attempts in its formulation to dominate the retail market where it has its presence.
The company has grown by expansion in the U.S., as well as internationally. As a result, Wal–Mart
has gained a widespread name, recognition, and customer satisfaction in relation to branching into
new sectors of retailing. Wal–Mart strives on three generic strategies consisting of focus strategy, the
differentiation strategy, and overall cost leadership. However, its low prices show both good and bad
outcomes for society (Ferrell, Fraedrich, & Ferrell, 2013). Wal–Mart strives hard to make their
organizations unique and distinctive. They force their suppliers to keep their prices low. If suppliers
fail to do so they discontinue the product or switch to a new supplier who is willing to provide the
price they want. Although Wal–Mart has made enormous profits, they have lacked in areas, failing
to provide their employees with the best working conditions and increased benefits. In addition, the
company has had issues with the law as it relates to discrimination with female, disabled, and
immigrant workers. Despite the downfalls, Wal–Mart now has over 4000 stores and outlets in U.S..
and other countries through acquisition and mergers using their low price strategies. Wal–Mart's
focus on

•The Strategy Of Other Companies For Facing The Wal-Mart
The Strategy of other companies for facing the Wal–Mart Threat.
1–Force Wal–Mart points are explicitly acknowledged widely. With its size and access to capital,
Wal–Mart can maintain even low–shop performance over the long term when you move to the area,
a luxury not granted many small businesses, based on the family. Distribution and supply chain
enables the efficient retailer to offer very low prices, which is difficult for competitors to match.
In wide variety products – especially in shops offering both the grocery and general merchandise –
generates traffic and supports storage–stop shopping and one of the consumer experiences. And, the
culture–oriented companies to control costs, which include reliance on low–cost and part–time, ...
Mimics this approach, described by Porter (1980) Focus – a low–cost strategy. Empirical research
supports the effectiveness of this approach among the selected small retailers, especially those that
operate in hostile environments and intensely competitive (Maggie and Rubach, 1996/1997).
Strategy 2: Focus––Differentiation "Wal–Mart simply cannot meet the needs of our customers."
– One approach to successfully compete against the big box requires a recognition that costs must be
kept under control, but the costs are low (low prices) cannot serve as an effective basis for
competition. Retailers and the adoption of concentration – a strategy of differentiation to avoid price
competition and competition on the basis of other factors such as quality, choice, convenience, and
service. There is increasing evidence that a number of smaller competitors Wal–Mart employ this
approach effectively against the big box (McWilliams, 2007a).
– It can also be an excellent specialization approach to combating a large box. Stores like Wal–Mart
are the master of the breadth, not depth. This is due to smaller margins; supermarkets are usually
able to carry only the products most in demand. Smaller retailers can pick status through the
implementation of the relevant product lines or items that are not great boxers. Examples can be
found in

Walmart's Unethical Issues
Introduction Wal–Mart is a business organization based in the United States of America that
operates multiple foreign and domestic retail stores. The company was established by Sam Walton
in 1962, as a small retail store, which marked its journey into becoming a monopolistic business
enterprise. It has continued to experience exponential growth due to increasing demand for its goods
and services at its reduced prices all over the world. Wal–Mart has a huge monopolist competition
presence due to its immense size and as a result, it has considerable impacts on market dynamics.
Sam Walton created Wal–Mart and made it a giant retailing outlet that today grows through
visionary leadership and exceptional business practices. Wal–Mart continues to depend on many of
the traditional business cultures while employing modern–day business technology. The
organization has encountered and is still facing some controversial business ethical issues which has
kept its reputation in check. Wal–Mart is classified as a Monopolistic Competition market structure.
Wal–Mart has been able to ... Show more content on Helpwriting.net ...
A monopolistic competitive market has several indicators such as large, but established numbers of
manufacturers, clients who have their own preferences for consumable products and retail outlets
with branded products trying to outdo their competitors (Scott). Moreover, the market is free,
meaning that it is relatively easy to enter or leave the market. It is important to note that in a
monopolistic market new good production is not a solution for replacing other existing products on
sale, but rather act as a close reliable substitute

“Wal-Mart: the High Cost of Low Pricing”
The Hague University '11 "Wal–Mart: The High cost of Low pricing" Assignment 2 of Business
Ethics Weis Karimi 2G 10045627 GBC Claudia Kuo 2G 10081127 Sustainable Business Leonie
Sander 2G 10021736 FBC John Berendsen 3B 20062300 GBC 1. a) A company doesn't only consist
of shareholder but also of stakeholders. In Wal–Mart case the four stakeholders in the video are: *
Customers * Suppliers * Associates (Employees * Community Customers influence Wal–Mart by
buying their products. However, Wal–Mart doesn't provide arm security on the parking lots which
has cause to many incidences such as shooting, raping and kidnapping. ... Show more content on
Helpwriting.net ...
* Regarding maxim 2, we can say that the employees in the production facilities are used for their
labor and treated as cheap labor for Wal–Mart own ends. Wal–Mart does not see the employees as
'ends in themselves'. We can say that their basic human dignity was not being fully recognized and
respected. * Looking at maxim 3, we can say that probably every rational thinking person would say
that working under the conditions as shown in the movie is in fact inhuman and that the asic human
dignity was not recognized and respected. We can conclude that proper working conditions is a
concept that should be followed by everyone. 3. According to Mona Williams, Wal–Mart's suppliers
have to comply with local country codes of the manufacturing country; this –in other words– means
that factory regulations in India is following the working–culture and rules of India, if Wal–Mart has
any goods produced there. Also, employees (factory–workers) should receive (relatively) good pay
and no child labour is to occur. This is a strong acceptance of capitalism (so the normative theory
applied here is the 'questioning versus accepting capitalism' theory). Mona Williams implies that
workers there should work in an environment, the same as any other factory in that country. This –in
the advantage of Wal–Mart– keeps the costs for products low because they "adjust to local
standards" and don't give workers any more than their co–inhabitants with

Case Analysis : Wal Mart
Case Analysis – 1
Suhrita Biswas
3505810
University of New Brunswick – Saint John
Strategic Management
MBA 7100
Deryk Stec
9th April, 2015
Introduction
Wal–Mart, Kmart, Target, and Costco are few retail stores that dominate the retail industry. Wal–
Mart is a well–known American company, which was founded by Sam Walton and his brother in the
year 1962. It is the world 's largest retailer, third biggest public company, and largest private
employer. Wal–Mart comprises of discount stores, warehouse outlets – Sam's and Bud's,
supercenters, and hypermarkets. Wal–Mart sells general merchandise, such as groceries, electronic
items – microwaves, refrigerators, and printers, kid toys and clothing, and ladies' and gents' dresses
and ... Show more content on Helpwriting.net ...
But, currently their net sales growth is $68 billion as per the annual report of Wal–Mart of 2014.
Porter's Five Forces Model
The Porter's Five Forces Model is as follows: Bargaining power of suppliers
The bargaining power of suppliers is high, when there are few substitutes available in the market,
suppliers provide a unique product, and there is high supplier switching costs. According to the case,
Wal–Mart is a retail store that holds a huge market share, and the suppliers are well aware of this
fact. So, the bargaining power of suppliers is low in case of Wal–Mart.
Bargaining power of buyers
A retail store has to differentiate its products from its competitors in order to attract customers;
otherwise it will lose them because they are usually price sensitive. Customers, first compare the
price of the product they want to buy among different suppliers (in this case it will be Wal–Mart and
its competitors, such as Target, Costco, and Kmart), then purchase materials from the one who sell
them products at a lower or discounted price. This, in turn, increases the competition among the
retail stores. The 'Everyday Low Price' (EDLP) strategy distinguished Wal–Mart from its
competitors. It sells groceries, and other products at a cheaper price compared to other retail stores,
which attracted a broad base of customers. So, the bargaining power of buyers is low.
Threats of new

Walmart Case Analysis
Wal–Mart: A Case Analysis
Matthew Hoskins
LeTourneau University
Wal–Mart: A Case Analysis Wal–Mart, its headquarters located in Bentonville, Arkansas, is
currently the largest retailer offering different formats of stores to fit the needs of the neighborhoods
in which they are located. The company operates in several different countries: Argentina, Brazil,
Canada, Chile, China, Costa Rica, El Salvador, Guatemala, Honduras, India, Japan, Mexico,
Nicaragua, Puerto Rico, and the UK. With all of these locations, Wal–Mart employees over 2
million employees. Wal–Mart recorded a bold $408,214 million in revenue for the year ending in
January 2010, an increase of .09% over 2009. Furthermore, Wal–Mart recorded an operating ...
This takes away from Wal–Mart's earning potential if they are unable to acquire sales from new
markets (DATAMONITOR: Wal–Mart Stores, Inc. 2010).
Discussion
Although Wal–Mart cuts costs in every way the company thinks possible, being sparse with its
employee wages can create negative consequences. How much longer are employees working for
Wal–Mart going to accept their low wages and high insurance costs? This could create a shortage of
labor in the future. Furthermore, many people have worked for Wal–Mart and have left with a bad
taste for the company. Poor treatment of employees often causes their families to stop shopping with
the company as well. Many people have become disgusted with Wal–Mart over reports in the news
about treating their employees unfair while offering them little pay. Vendors who service Wal–Mart
also receive ill treatment; the company tries to bully everyone in to doing things their way or not at
all. A company that markets to families has to maintain a good reputation in order to attract
customers. If Wal–Mart does not improve their image, business could suffer in the future. Soon,
Wal–Mart may not be able to find employees that will work for so little pay, forcing them to
increase its labor costs, which will then force its prices skyward. Furthermore, if Wal–Mart had a
more positive image, more customers would welcome their stores into their neighborhoods; this
would create an opportunity for more

Walmart De Mexico Essays
Wal–Mart de Mexico Comercial Mexicana S.A. (Comerci), one of Mexico's largest retail chains,
was faced with a serious dilemma. Since Wal–Mart's aggressive entry into the Mexican retail
market, Comerci has found it increasingly difficult to remain competitive. Wal–Mart's strong
operating presence and low prices since NAFTA's lifting of tariffs have put pressure on Comerci,
and now management must decide if it can improve Comerci's competitive position by remaining
independent or by merging with either a local or foreign retailer. Which raises one question that
needs to be answered: What has caused this intense competitive pressure on Comerci, and what is
likely to be its future? Mexico's retail sector has benefited greatly from the ... Show more content on
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The company has expanded into internationally to nine countries through new–store construction
and acquisitions. Today Wal–Mart International employs more than 330,000 associates in Argentina,
Brazil, Canada, China, Germany, Korea, Mexico, Puerto Rico and the United Kingdom. Wal–Mart's
operations in Canada, the United States and Mexico's partners in NAFTA, began in 1994 with
acquisition of 122 Woolco stores. It now has 196 stores and has strong partnerships with Canadian
suppliers. With growth stalling in the United States Wal–Mart is looking to international expansion
for growth> in fiscal 2002, the international division increased sales by 10.5 percent to $35.4 billion
and operating profit increased 31.1 percent to $1.4 billion. The division accounts for 17 percent of
sales and 11 percent of profits. Most forecaster believe Wal–Mart's growth outside the United States
will grow by an average of 26 percent for the foreseeable future. Wal–Mart's success internationally
has varied by country. Although successful in countries like Mexico and Canada, where it has
become the largest retailer, it has yet to prove itself in Germany and Argentina. It is learning from its
past mistakes, and it is now adapting much better to local cultures and learning from partnerships
formed in each country. Wal–Mart Competitive Advantage Much of Wal–Mart's international
success comes from the tested practices of the U.S. division bases its success on.

Wal-Mart: The High Cost Of Low Prices
I watched this movie on June 1, 2016. The movie Wal–Mart: The high Cost of Low prices is a
documentary about the unsavory practices Wal–Mart has in place in order to ensure they are selling
their items at dirt cheap prices. The movie starts out with a mom and popshop called H and H
hardware, talking about the adverse effects of a Wal–Mart in their area has on their business.
Eventually they become unable to compete with Wal–Mart and their low prices, and the viewer soon
sees them put the family store up for sale. The movie then goes on to talk about how when a Wal–
Mart comes to an area, it is only a mere matter of months until the local business are forced to close
shop. Many towns offer subsidies so a Wal–Mart will come and open there, but ... Show more
We also see people protesting for living wages and no more unpaid overtime at Wal–Mar.t
Overall the movie highlights the multiple aspects of Wal–Mart that are shady and even inhumane. It
will educate the viewer to be a smart consumer and realize by shopping at Wal–Mart we are helping
add more harm to the problem.
Scarcity: Scarcity is a problem everyone in the world faces, no matter how rich or how poor. There
is simply not enough of everything (time, resources, etc.) to meet our unlimited wanted and needs.
Part of economics is finding alternatives to certain resources or making best use of the limited
resources. Wal–Mart employees felt the effects of scarcity, even though it is a multi–billion dollar
company.
Scarcity Example: Wal–Mart under hires employees for its store. To the employees, there is a
scarcity of employees in the store. The lack of manpower causes the employees to have to work
overtime in order to get everything done. Wal–Mart doesn't have a scarcity of people applying for
jobs, but they choose to keep a scarcity of employees so they can current employees work overtime
for free and this saves the company a lot of

Wal Mart : A Retail Conglomerate
Wal–Mart: A Retail Conglomerate When Wal–Mart opened its doors in 1962, the Walton brothers
had no clue on the magnitude the 'one stop shop" chain would bring. For every company that is
successful, there is a multitude of competitive strategies that are found at the core of their success.
Such strategies virtually direct the company's activities that will essentially carry over and
contribute to their culture, performance, and other strategies that are implemented. Wal–Mart
currently is the biggest grocery retailer, as well as the largest private employer, with over 8,900
stores located in over 10 countries, that serve under 55 different names. However, during the first 5
years, it seemed as though Wal–Mart's reputation and performance were headed in opposite
directions. Furthermore, there are a number of other factors, such as economic, technological, and
socio–cultural, that contribute to the revolution of pricing, demand, and even how products are
manufactured. For example, interest rates affect economic factors, Wal–Mart's low prices contribute
to its social factors, and value chin distribution to enhance their technological factors. Serving nearly
176 million consumers every year and employing over 1.2 million U.S employees, it is of no
wonder why Wal–Mart is the chain conglomerate that it is. Wal–Mart chains are essentially a
franchise of convenince, featuring every item in every department. Consumers have a one stop shop
for items such as house supplies, auto

Essay on Business Ethics
Kristine Martin Business Ethics Unit 3 Case Summary –China, India, and Wal–Mart: Issues of
Price, Quality, and Sourcing:: Case Questions: 1. What are the ethical issues associated with Wal–
Mart's extensive sourcing of low–cost products from China? Wal–Mart pricing is too low. As the
world's largest retailer, Wal–Mart leverages its huge orders to convince factories to sell goods at low
prices that are not sustainable. This puts pressure on other brands to pay less, thereby setting a
dangerous industry precedent. According to Correspondent Hedrick Smith: "We heard that story
again and again from American manufacturers in sectors as diverse as electronics, apparel, bicycles,
furniture, and textiles. They expressed private ... Show more content on Helpwriting.net ...
In the first national independent poll of Wal–Mart associates, conducted by Lake Research Partners
in May and June of 2011, concerns about staffing levels were broadly cited by associates among top
three things they would change with the company, after higher pay and more respect on the job.
Among the other findings: * Nearly ¾ say understaffing has created problems such as stock–outs,
messy stores and poor customer service; * In contrast to company statements regarding high levels
of employee satisfaction, 84% say they would take a better job if they could find one * ½ say they
are living paycheck to paycheck; only 14% describe their household as living comfortably. Across
the country the reductions in staffing have translated into significantly increased workloads. A few
examples convey the scale of the changes: * An associate in the electronics department in Southern
California: "There used to be four or five people in consumer electronics at any given time, now it's
one or two;" * An associate in overnight stocking in Southern California: "I used to do five pallets a
night, now they say I have to do 12;" * A former assistant manager in Seattle: "Our store used to
have about 600 employees, now it's about 350." (Marshall) What

Essay about Wal-Mart: The High Cost of Low Prices
Environmental Studies is the academic field, which systematically studies human interaction with
the environment in which we live in. It is a broad field of study that includes the natural
environment, built environment, and the sets of relationships between them. Environmental studies
takes into account many different factors that help provide an enjoyable, fruitful way of life, such as
national policies, politics, laws, economics, sociology and other social aspects, planning, pollution
control, natural resources, and the interactions of human beings and nature. Walmart has had a long–
standing presence in America society since the middle of the 20th century, seen as a place to get
everything done, Walmart has become a fixation in our ... Show more content on Helpwriting.net ...
Walmart also has had battles dealing with sexual discrimination regarding women and as well as
members of the LGBT community. Another big issue affecting the welfare of the human population,
which is crucial in the development of a stable society and ecosystem, are the work labor issues
involved in Chinese factories. Taking a closer look at the issues will hopefully develop an idea of
how hurtful Walmart truly is to the environment. From economic, developmental and environmental
standpoints, Walmart is not the savior they claim to be. Some may claim a Walmarts' arrival in a
community is helpful to improve the growth and development in the community, but others tell a
different story. Many claim that a Walmart is great way to create new jobs in the community. They
are partially right, between construction and development, plenty of jobs are created. Also, about
300 retail jobs are created based on the amount needed to run a Walmart super center twenty fours a
day, seven days a week. However, Kenneth Stone, a professor of economics at Iowa State
University, conducted a study in which two Super Walmart centers in two different states were
evaluated. The study lasted about two years and showed that for every one job Walmart had created,
1.4 jobs were lost in local communities (Davidson 1). Walmarts' low prices come with additional
costs that we are

Walmart Good Or Bad Essay
Wal–Mart's gives their suppliers little choice in the way of price in most cases. The Wal–Mart
suppliers either goes along with the everyday low price deal and lowers the price by at least five
percent or Wal–Mart's will find a different supply company or will not carry the product. Wal–Mart
also made their suppliers buy a merchandise tracking system that cost the supplier plenty and the
Wal–Mart chain little. There are companies that do a lot of business with Wal–Mart and have to put
up with this company so to say these are the companies that sell a lot of different products Diamond
Foods and Boulder Brands for example both do nineteen percent of its business with Wal–Mart and
would have to make that up elsewhere if they chose not ... Show more content on Helpwriting.net ...
Keeping prices low keeps Wal–Mart from offering the high wages, high position or high benefits to
all their employees. The records showed a lot of Wal–Mart employees were only paid minimum
wage and children of workers were on state free insurance or uninsured. "Wal–Mart Stores Inc is
cutting health insurance for another 30,000 part–time workers and raising premiums for its other
employees, as U.S. corporations push to contain costs in the wake of the federal health–care law".
However, a lot of the jobs at Wal–mart do not need a special degree or special training so minimum
wage or a little more is good enough. Plus with such low prices the store has plenty business which
is job security and plenty of work at all hours which is a good thing even for the employees which
hold low rank positions. However some of these low price item seem to have come from sweatshops
oversea and four worker's in California, ``Investigation after investigation of Wal–Mart's operations
and suppliers reveal that Wal–Mart is an unrepentant and recidivist violator of human rights,''(
Reuter,2005). There were also several cases during 2003–2005 where illegal immigrants in the
United States were used to clean Wal–Mart stores. Wal–Mart also does not have a union which for
the stakeholders could be a bad

Wal-Mart Case Study Essay
Steven Kruid 005311499 Wal–Mart Case Assignment What impresses you about the company?
What accounts for Wal–Mart's success over the past 25+ years? Is it a great strategy, superb strategy
implementation and execution, or great leadership? What aspects of Wal–Mart do you find
unimpressive? Which of the five generic strategies is Wal–Mart employing? What are the chief
elements of its strategy? The generic strategy that Wal–Mart employs is mainly a low–cost leader.
This is evident by the company's purpose: "saving people money so they can live better". Wal–Mart
believes that having a lower price matters to their customers. They continuously seek to reduce costs
throughout their company, which will in turn reduce costs for ... Show more content on
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One way is by making information readily available to both the company and the suppliers through
online systems. This allows information to be transmitted quickly and products to be made
efficiently. The purchasing and distribution activities of Wal–Mart are also parts of the value chain
that are very efficient. They try to centralize their purchasing as much as they can. This basically
gets rid of the middleman, which then saves money. An automated distribution center will further
increase the efficiency of Wal–Mart's value chain. Wal–Mart also is sure to keep labor costs to a
minimum. By making sure the costs of their value chain are low, Wal–Mart is able to be a low–cost
industry leader. Furthermore, another element apparent in the low–cost strategy of Wal–Mart is the
cost conscious corporate culture. The company was started by a man named Sam Walton who
developed the company to have "every day low prices". He is also known for saying "if we work
together, we'll lower the cost of living for everyone". Every since Sam Walton started this company,
the entire company has strived to be a low–cost leader. Various leaders of Wal–Mart have never
sought to change the philosophy the company was built on, but continued to build upon it. It is the
focus that underlies everything they do. It is also an approach that has garnered success. Low–cost
strategies are unable to work on products that are uncommon and that few people purchase, but
because Wal–Mart

SWOT analysis of Walmart
"People think we got big by putting big stores in small towns. Really, we got big by replacing
inventory with information." Sam Walton, Founder of Wal–Mart
SWOT analysis of Walmart This is Walmart Stores Inc. SWOT analysis for 2013. For more
information on how to do SWOT analysis please refer to our article.
Company background
Name Wal–Mart Stores Inc.
Industries served Retail
Geographic areas served Worldwide
Headquarters Bentonville, US
Current CEO Mike Duke
Revenue $ 466.950 billion (2012)
Profit $ 15.699 billion (2012)
Employees 2.2 million (2012)
Main Competitors Costco Wholesale Corporation, Dollar General Corporation, Dollar Tree, Inc.,
Kohl 's Corporation, Macy 's Inc, Sears Holdings ... Show more content on Helpwriting.net ...
In addition to litigation costs, corporate's reputation has been damaged and fewer skilled workers are
willing to work for it.
2. High employee turnover. The business suffers from high employee turnover that increases firm's
costs, as it has to train new employees more often. The main reason for high employee turnover is
low skilled, poorly paid jobs.
3. Little differentiation. Walmart has no differentiation compared to its competitors, which might
hurt the company in the future if commodity prices or average consumer income would increase. In
this case, low cost leadership strategy wouldn't be as effective as it currently is and Walmart's main
competitive advantage would erode.
4. Negative publicity. The company is often criticized for its questionable practices such as bribery
of authorities or poor work conditions. Negative publicity damages corporate's reputation.
Opportunities
1. Retail market growth in emerging markets. Retail markets grew by at least 5% on average in
emerging markets in the last year, opening huge opportunities for Walmart's revenue growth. The
business currently operates in Brazil, Mexico, China and India markets. Walmart should increase its
presence in these markets to sustain future growth.
2. Rising acceptance of own label products. The sales of private label products have increased by
more than 40% over the last 10 years. This reveals increasing consumer acceptance of supermarket
chain

Marketing Strategy of Wal-Mart
This is a case analysis of Wal–Mart, the largest retailer in Mexico and North America. Wal–Mart
controls a large portion of the markets in which its products are sold, enabling Wal–Mart to maintain
its core value of delivering low prices through eliminating the bargaining power of suppliers and
buyers, developing innovative technology to maintain competitive advantage, and thus creating
incredibly high barriers for new entrants. Wal–Mart's core value – delivering low prices – has
proved successful in creating the largest and most powerful company in history. From 2001–2006,
Wal–Mart opened an average of sixteen new supercenters per month, one every business day in
2005 (Fishman, 2006). Ghemawat (2004, cited by Lichtenstein, (2006)) ... Show more content on
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This system enables immediate feedback on the tracking of inventory and automatic restoring of
stock throughout the company (Hoopes, 2006). This increases the rate of inventory turnover,
reducing the cost of assets in stock. Chandler (1977, cited by Hoopes, (2006)) describes the optimal
size of a firm as one balanced by "technology's effect on the efficiency of management versus
technology's effect on the efficiency of the market" (p.86). Wal–Mart's advanced technology has
expanded the company's optimal size by decreasing management costs more quickly than
transaction costs. Individual consumers have no power since their decisions hardly cause a dent in
Wal–Mart's sales (Levy, 2005). This advantage is a consequence of operational effectiveness, since
competitive rivals fail to perform similar tasks with the same productiveness (Porter, 1996).
Substitute products are also not a threat, due to the convenience and low prices available at Wal–
Mart. The recent increase in negative backlash by the media regarding the treatment of employees
could create a reduction in Wal–Mart's sales as more people actively fight the power that Wal–Mart
has over the global economy. However, low wages and benefits for employees can be explained by
Wal–Mart's immutable motto of always low prices, which saves consumers millions of dollars

Walmart Case Analysis Essay
Case Analysis – Wal–Mart About Wal–Mart: Wal–Mart rules the Fortune 500 for the second year in
a row –– and the eighth time this decade –– beating Exxon Mobil decisively in the battle to be
crowned America 's largest company[1]. In just a few decades, Wal–Mart 's rapid development has
created a miracle in the retail industry. Wal–Mart successfully obtained business, at the same time,
put big influence to customers, suppliers or even the whole society. "Every Day Low Price" benefits
its numerous customers worldwide and tens of thousands of national suppliers provide products and
services to Wal–Mart. For the retail industry and the whole business Wal–Mart has developed into a
benchmark. As the nation 's largest private employer ... Show more content on Helpwriting.net ...
But Wal–Mart turned challenges into its own advantages. The stores with scientific planning bring
the customer shopping convenience and a better shopping experience. Wal–Mart 's new stores will
be opened by a uniform standard for store planning–– the size of its shop, shop decoration, store
shelves size, placement of goods, commodities and other signs have placed the company uniform
regulations. In addition to a unified, standard store planning, store display of goods for Wal–Mart
has its own set of rules and the display starting point is the basis of their merchandise mix. Wal–
Mart retail stores in the design of merchandise on display, always will be a unique store design
principles. Extremely powerful Wal–Mart 's supply chain is another key factors to offer "Every Day
Low Price" – ultimate advantage. The supply chain is ultimately the customer demand–driven
supply chain and the high integration, quick data exchange reaction. Its characteristics can be
summarized with three points: seamless style transparent supply chain, co–management of
collaborative supply chain, and the emerging "green" supply chain. Target customers: The new
companies look forward to learning Wal–Mart 's extensive standardization process management to
help regulate the development; the developing companies expect to learn Wal– Mart 's advanced
management system to enhance the development of their own

Walmart
Wal–Mart Case Study Part 1
* Is Wal–Mart Good for America? * First company to report 256$ billion in sales * World's largest
company * Global retailors have become the most powerful in the global economy * Each week 100
million shoppers visit Wal–Mart * Try to keep costs as less possible * Large volumes, fast turnover
* Buy less, sell for cheaper than the "other guy" * 120,000 items in stock, managed through barcode
reader * Track sales of specific items, on specific days, spikes in sales, colors, sizes, flavors, etc. *
Shift from push to pull production * Push: manufacturers deciding what to produce, and telling
retailors to sell it * Pull: ... Show more content on Helpwriting.net ...
Group Discussion: "are there any ethical issues that arise from Wal–Mart promoting "always low
prices", and creating the perception in consumers' minds that their prices are actually lowest, given
their 'opening price point' strategy? * The Globalization of Production & Wal–Mart * "Wal–
Mart basically tells its suppliers 'we need to get those products at 30% lower price – you need to
move to Asia – you

Costco vs. Wal-Mart
Costco vs. Wal–Mart
With $401.2 billion revenues, the retailing giant, Wal–Mart, has been ranked as the 2nd place of
2009 Fortune 500 companies. This company is seen as the most successful business in the world
today but also viewed as the vital indicator to observe the status of financial crisis recovery. Wal–
Mart has won market share during the recession by offering customers lower prices as its successful
marketing strategy. Moreover, Wal–Mart is long for expanding its kingdom all over the world. In
2005, Taiwan once was one of Wal–mart's plans to join the overseas expansion, nevertheless, Wal–
mart veered round to China at the last minute.
Instead, the Costco (24th place of 2009 Fortune 500) with 71.4 billion revenues completed ... Show
more content on Helpwriting.net ...
B. External
1. Different orientation of target consumer of Costco and Wal–mart. For Wal–mart, it concentrates
on customers of each level from rural community who would like to travel greater distances for
lower prices and more merchandise variety. However, Costco is a exclusive club for business who is
looking for bulk–buying and now it spilled over to high and working class. The different customer
segments divide the marketing strategies of these two retailing business. For example, it affects the
price making and merchandise selecting in stores.
2. A discount retailer who is strictly based on low price, Wal–Mart's "everyday low price"
philosophy is running their stores quite successfully. In addition, Contrasts with other small
company and retailing business, Wal–mart uses a strategy of odd number pricing. This strategy has
been tested and has proven that people tend to buy items, which are odd number priced, more than, a
price ending of zero.
III. Unique marketing strategy & competitive advantage of two parties.
A. Wal–Mart
1. Stable quality control under low prices. While retailing battle ultimately focus on how to offer
lower prices, customer may concern that low prices equal to poor qualities. Wal–mart promises to
offer their customer with the lowest prices with guaranteed quality goods. It sets strict quality
standards to control its suppliers to take full responsibility for their product lines and avoids
providing poor quality

Aldi 's A Low Cost Strategy
Aldi is a discount retailer that was founded in Germany by the Albrecht brothers in 1946. The
company owns over 10,000 stores in over 17 countries that generated $66 billion in sales in
2012.The retailer entered the US market in 1976 and now operates more than 1,200 stores in over 32
states with the plan to open 650 more until 2018.
Aldi pursues a low–cost strategy. It is heavily focused on private labeled products, which account
for 95% of all products in each Aldi store. The average store is located in a nondescript but highly
trafficked areas. Stores are generally small with a size between 8000–15000 feet and inventory is
limited to roughly 1500 different items with not more than two variations per items. Despite low
product variety, US– customers can do about 90% of their weekly shopping at Aldi.
Aldi stores are designed simple and pragmatic. Products are displayed in their shipping boxes,
stacked atop pallets. The stores are designed so simplistic that only four employees can easily
operate it. Also products are designed for quick processing. Every side of each product box displays
the bar–code., so that can easily be scanned by the teller. All these measures are supposed to ensure
a quick, easy and uncomplicated shopping experience.
Everything at Aldi is designed for cost saving. Aldi even cuts back on marketing expenses and puts
only minimal effort into advertisement. The management system is extremely centralized. The
higher management makes most decisions. Store

Wall-Marts Take over of Asda
Wal–Mart is a US–based multinational corporation. Critically discuss the likely costs and benefits of
its takeover of Asda, a UK–based company Wal–Mart is the world's largest retailer with over 8400
stores worldwide employing 2 million people. It serves more than 200 million people with global
sales exceeding £291 billion. (Basker, 2007) Wal–Mart is globally organised so that it can respond
quickly to changing markets and cost conditions in its international locations. The UK is one of
these locations. This essay will firstly explore features that are of benefit before considering features
that are of detriment to Wal–Mart and the UK in the aftermath of its take–over of Asda. Wal–Mart
benefited from the acquisition of Asda because ... Show more content on Helpwriting.net ...
This division sells products such as cars, holidays, pharmaceuticals and photographic items (Case
study 2005 as sited in LB 160 2013). Again this is affecting local businesses and it can lead to
limiting the consumer's choice as Wal–Mart/Asda decides which products it will sell, dependant on
the price it can squeeze from its suppliers. A risk to the UK populations health is Wal–Mart/Asda's
introduction of its Smart Price food items, targeted at low income families. There has always been a
concern that these items are of low quality due to their fat content, but attractive to low income
families due to their low price. There has been speculation that Wal–Mart/Asda was interested in
taking over the Safeways chain of stores. Eventually this takeover did not happen, but it did raise
concerns. If the takeover had gone ahead, Wal–Mart/Asda would have become so big, that it would
have dominated the market and no other retailer would have been able to compete with them. The
cost of this could have been the flooding of the UK with cheap low quality goods from China, an
overreliance of Wal–Mart/Asda, and an acceptance of cheap low quality goods by the UK
population. Additionally it would have limited the UK consumer's choices and would have affected
people's jobs as business down–scaled or closed down, as they could not compete with the Wal–
Mart/Asda economy of scale.

Wal-Mart
BRIEF INTRODUCTION
Wal–Mart is a company based in North America but has become the largest retailer and is larger
than any other retail chain in the world. It is clear that Wal–Mart is growing and gaining
international power at an alarming rate. Wal–Mart journey from humble beginnings in the 1960s as
a folksy discount retailer in the boondocks of Arkansas to a global retailing juggernaut in 2008 was
unprecedented among the company of the world: Sales were expected to exceed $400 billion in
fiscal 2009.
Wal–Mart provides general merchandise: family apparel, health & beauty aids, household needs,
electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes. Also, the company runs a
pharmacy department, Tire & Lube Express, and ... Show more content on Helpwriting.net ...
It sells products across many sectors such as clothing, food and other departments. Due to product
diversity, Wal–Mart exist competitive weakness.
Wal–Mart has a bad image to consumer. Wal–Mart supports sustainable development, but it has
more speak than action. On the other hand, awful employee benefit gives the world a bad image.
In local branch store, senior executives are accrediting, it's contradictory strategy about localization
development. The lack of local mangers can cause culture difference. It is short of interactive
management between firm and employees.
From table two we can get a conclusion that Wal–Mart stores exist around the world. The big scale
takes many problems and the big span in management will reduce controlling force.
The table one shows that the Current Ratio is lower than 1.0 since 2004. The Wal–Mart has low
ability to pay current liabilities. The Return on Assets came down every year. It proved that
company has bad effects on utilization of assets. The Return on Shareholders' equity was also
declined every year, owners' equity can make a profit in a weak level. Based on current assets and
current liabilities, it has negative data from 2000–2008, it means Wal–Mart has finance problem.
OPPORTUNITY
Openings to win market share from rivals. From example, Kmart, Target and Carrefour. Moreover,
in the warehouse club segment the two largest competitors were Costco Wholesale and Sam's Clubs.
Expanding into new geographic

Current Market Conditions Paper
Current Market Conditions Paper
ECO 365
University of Phoenix
April 6, 2011
Introduction In a society that has seen such a drastic downturn in the economy, people are searching
for the best possible bargains they can find. People across the United States are looking for ways to
save money; thus, searching for stores that will provide them with everything they need at a lower
cost. Companies all over the United States are fighting to stay competitive and are seeking ways to
restructure their company and still provide for consumers the best possible prices. Companies such
as Wal–Mart do not have to change their structure to fit the demands of consumers because it
already offers its customers brand name items ... Show more content on Helpwriting.net ...
However, since Wal–Mart is a large retailer and it operates in a perfect competitive market, it has to
be a price taker. Even with its increased sales, Wal–Mart has no control over prices. The company
has to be very careful about its prices in order to maintain the market share. The prices cannot be too
high or too low. If the prices are too high, Wal–Mart will lose its customers. This will result in losing
sales as well as market share because there are many other competitors in the market that offer the
same product. Too low prices will not produce any profit or market share gains for Wal–Mart. Thus,
Wal–Mart must go with the market–based pricing approach.
Technology
Wal–Mart uses a wide range of technology. When a company fails to recognize the importance of
technology, the company runs the risk of being overtaken by competition. It uses a merchandise
scanning system that let the managers or employees know if the stock on a shelf is getting low so
they can be responsive to consumers' buying habits, and make sure the items they are looking for are
there for them (Solman, 2004). Another recent technology that Wal–Mart has implemented is self–
checkout registers. This technology has made it easier and faster for consumers. Instead of waiting
in long lines, they can just check themselves out and save some time. As this technology replaces
employees, Wal–Mart can save the money that they paid to their cashiers. This could

WalmartTargetCase Essay
fa Two giants in the discount superstore market are Wal–Mart and Target and they differ slightly in
their business strategies. Both companies are able to achieve a great deal of control over all of
Porter's Five Forces: supplier power, customer power, established rivals, new entrants, and
substitutes but Wal–Mart seems to have a lower threat from suppliers than Target. When evaluating
Porter's Five Forces, it is evident that Wal–Mart and Target's biggest threat is each other. First, it
does not seem to be difficult to enter the industry necessarily, but for a company to have an effect on
either Wal–Mart or Target's business they would need to be a major player which is unrealistic if a
company is a new entrant. Secondly, supplier power ... Show more content on Helpwriting.net ...
Although Wal–Mart and Target seem to be very similar in their product offering and mix, their
fundamental strategies tend to differ. Both of these companies overall strategies can be found in
Item 1 of their respective 10–K's. According to the 10–K, Wal–Mart's objective is to help people
around the world save money and live better anytime and anywhere. They are able to offer this
service via retail stores, online, and through their mobile applications. Wal–Mart's strategy to
employ the above is further clarified in the following excerpt from the 10–K: "We earn the trust of
our customers every day by providing a broad assortment of quality merchandise and services at
everyday low prices ("EDLP"), while fostering a culture that rewards and embraces mutual respect,
integrity and diversity. EDLP is our pricing philosophy under which we price items at a low price
every day so our customers trust that our prices will not change under frequent promotional
activity." The sampled excerpt is a good example of the strategy that Wal–Mart has incorporated in
the past and will be relying on for the future. Wal–Mart is known to keep their prices low and
consistent thus the customers are not surprised and know what to expect. They do not offer coupons
or special promotions since they offer a everyday low price guarantee. Target's objective, found in

Wal-Mart: Kroger's Business Strategy
Wal–Mart is a fortune 500 company that offers a variety of things from electronic devices, to home
appliances, and medical care items. Wal–Mart is a one stop shop when it comes to shopping. With
that being said customers enjoy, being able to take care of all their need on one place. In addition to
home furnishings, the retailer also offers clothes, baby products, sporting goods and grocery items.
This makes it so easy to get what you need, instead of having to go to different stores to purchase
items. Another good thing that Wal–Mart offers is the money center, which is used to pay your bills
and received money. It is convenient, when you can take care of the so many things in one place.
When it come to the company, Wal–Mart's targeted ... Show more content on Helpwriting.net ...
Due to such a large scale of operations, Wal–Mart can make there prices low at cost, this is an
advantage. Also Wal–Mart has over 10,130 stores. The wide ranges of products, with this Wal–Mart
have a lot of brands to choose from. The Competence in information system, the effective
management of the supply chain and the logistic is one of the most important factors for Wal–Mart.
The cost leader strategy, help Wal–Mart with the prices, as for they are able to put prices at the
lowest over other competitors. The last one international operation, Wal–Mart does not rely on US
stores only, but the competitors do (Jurevicius,

Walmart Case Analysis

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