Wal-Mart

Preparing a Comprehensive Case Analysis, Part 2 Katrina D. Pratt Strayer University: Asynchronous Business 490: STRATEGIC MANAGEMENT: CONCEEPTS AND CASE December 02, 2012 Wal-Mart Case Analysis Introduction Wal-Mart earliest accumulation was launched around 1962 by Sam and Helen Walton. They took the leading design of foundational an accumulation completely during the course of the pastoral American. The primary supply was unlocked in Rogers, Arkansas starting anywhere the provisions devoted toward additional areas. The corporation grew promptly incorporating Wal-Mart Stores Inc. fitting after a historical of seven years. Inside 8 years, the enterprise was talented in the direction of approachable the essential dissemination midpoint inside Arkansas then plus too coexist respect next to the New York stock Exchange. Through 1991, the establishment released the primary international region inside Mexico City and success in order to see the opportunity of numerous new provisions international. Identification and Analysis of Corporate Strategy The highest approach in order to underscore through Wal-Mart was so as to the influence of expenses besides fees in the direction of interest new clients. Wal-Mart experienced the awareness of recessive the charges of its futures then facilities toward guarantee so as to enamored supplementary trade by means of to cut a long story short by way of recollect them overly. Besides access of marketing supplies in order to forthcoming individual hinder spending development, Wal-Mart was clever toward increase more than its contenders. Customers in support of a extended time treasured any discontinue errands targets wherever they might bargain a diversity belongings at the constant period in the direction of safeguard opportuneness in addition reduce hour consumed throughout bargain hunting expedition. Wal-Mart supplies carried this line of attack in order to unlock everything resolve rations using grocery, sartorial, and different merchandise accessible. They shared supermarkets in addition money off selling goods fashionable the similar structure. This policy of granted entire determination weekly shop complexes including while depths fines when possible is anything multitude Wal-Mart in the direction of incredible growth likewise enlargement in the course of its opening a month of Sundays. Inside a phase of 15 years, Wal-Mart consumed mature toward extra 30 wholesale vittles voguish lesser cities of the United States such as per Arkansas as well Missouri. A new positive scheme in order to hired using Wal-Mart was the custom of technology to ensure that they managed their stocks well and with minimal employee supervision. Wal-Mart management introduced new technology product identification and tracking software. This removed the need for data entry at the discount centers, supplier data entry and many others such as the need for employees to always source protocols on or after produce. The conclude advantage was an important reappearance happening the investments since overheads in addition to cutbacks of shrinkage in order to remained beforehand without stopping collective auxiliary. Auxiliary, summary of such technology in product tracking was beneficial in inventory management. It was possible to perform easy and accurate astrological next to entirely quadruple to guarantee in order to the correct magnitude of brands was continuously a cutting-edge its provisions. Physical Power Wal-Mart provisions require separate or respective advantages over its competitors. One of the best strength of the company is its presence in the market. Wal-Mart has a large number of customers who recognize and constantly visits its stores. It also offers a huge selection of products at the lowest prices possible to their customers under one shopping center. Because of its ability to get huge loads of goods at a time, Wal-Mart is entitled to large discounts from its suppliers. Wal-Mart superstores are correspondingly proficient toward fabrication their particular merchandise by means of their powerful products cutting-edge the souk. The volume in addition to procurement power of the industry is a great strength in the market. Weaknesses The size of the organization has grown tremendously and it is becoming difficult to manage employees. The company has been under criticism for failing to manage its workforce and paying and compensating its employees poorly. Maintaining the low prices is also proving to be a difficult undertaking over time and such pressure is always turned to its suppliers. At times, the company has not been able to convince their customers on the quality of its goods. In most situations people have questioned the quality of the products given the low prices. Opportunities • Expansion to international markets • The company has a great technological base that can allow it to expand to internet shopping • Creating Wal-Mart convenience stores in major towns Threats • Opposition and competition from local retail stores those are more convenient • Competition in the international market especially in Europe • Attack from labor unions with relation to the condition of its employees Strategic Position/Discussion of Alternatives Wal-Mart has great competitive advantages over its competitors and this places it in a good position in the market. The main advantage that it has against its competitors is its high bargaining power. Wal-Mart stores can take this to purchase goods at lower prices from suppliers and pass such benefits to its customers. This is very beneficial in its main strategy of ensuring lower prices than all its competitors. Its analysis of its competitors can help it track what to do and not what to do. As the owner of the stores, Walton said the company should always take what other stores did best and does it better to ensure to overdo the competitors. Its success in benchmarking the activities of the competitors places it at a better position in the market share that is full of thousands of stores. Another advantage to its strategy is the ownership of huge stores that supply a variety of goods. The availability of large stores allows it to buy directly from suppliers or manufactures and cut-off middlemen from its business. This way, the company is able to sustain its distribution network from the suppliers and also to the customers. The ability to manufacture goods and unique merchandize also give it a great position in the market. With the ability to purchase directly from the manufacturers and manufacture own goods, the company is at a better position of reducing its prices and reaching their customers easily. With all these, the company can be able to beat their challengers trendy attracting innovative consumers by the means of anyway in place of absorbent completely the present clientele (Jones 34). Furthermore, Wal-Mart has an excellent prospect in the direction of increasing to international markets where people seek cheaper and one stop shopping centers. Its expansion to places such as United Arabs Emirates, United Kingdom and China gives it a great advantage in terms of sales. Such countries have a ready market with large populations that can provide the market for the goods. Its presence and knowledge of the market through the employment of local managers’ gives leaves the store a great position to take over. However, its relations with employees pose a great threat to the organization especially from employee unions. The threat to unionize Wal-Mart employees will eventually affect the organization negatively and this will cost it more finances in labor. Recommendations to the Management Globalization Wal-Mart management should take its strengths and use them to expand to the global market. The management should use its existing framework in the market to sustain the ever prevailing competition to expand to other markets. While doing this, the company can use strategies such as partnerships and taking over small retail stores in the market to expand to the international market. The best strategy to employ while getting in to new markets is the taking over of other companies and using the same employees and management to take over. In doing this, the company should ensure to create convenience stores at the edges of towns to counter threats such as travel costs and competition from local stores (Verbeke 49). Presence in the Internet The management should also ensure to increase its presence in the online shopping markets. Home delivery of goods is a good opportunity that should be exploited through the internet. More people are less likely to travel constantly to shopping stores while others prefer the convenience of online shopping to travelling. The sustainability of its information systems is great and they should use the advantage to invest more in online shopping and delivery of goods (Verbeke 51). Organizational Image The company should focus on changing its organizational image based on work experiences with the employees. This can be achieved through maintaining a stream of employees that are easier to manage to satisfaction. Fewer employees can lead to lower labor costs. This can be achieved through introduction of technological and a step by step process of reducing the employees. The corporate image of the company will be important especially during introduction to new markets and also in avoiding sanctions from labor unions (Verbeke 53). Conclusion Wal-Mart retail stores have excellent gain popular conditions of retail toward the supplies available them. Market inquiry has been a magnificent implement around the development in addition spreading out of these provisions finished the United States. The productive forward of contemporary rations so as to worldwide market such while the United Kingdom, Mexico and Canada are between the policies so as to enjoy influencing the association toward fantastic victory. Using this several discharges determine in order to the greatest business plans too group composition shared plus solution besides wonderful organization services give notice ultimately principal in the direction of achievement. Reference Best Stores for Practically Anything: We Rate Big Retail Chains Such As Costco, Macy's, and Wal-Mart, and Reveal How to Really Save." Consumer Reports Washington. 75.7 (2010): 16-23. Print. Grant, G. M. & Jordan, J. (2012). Foundation of strategy, chapter 3. Chichester. Kohn Wiley & Sons. Jones, Kay B. The American Retailer: A 20 Year Journey with Wal-Mart. Baltimore, [Md.: Publish America, 2011. Print.