Case Study Wal-Mart Essay Example for Free

Case Study Wal-Mart canvasEvaluate the general environment of Wal-Mart development the framework in Chapter 2. What are the key opportunities and threats facing Wal-Mart? (This is the OT of a SWOT analysis)Wal-Marts builds its stores in towns with a population size of it of 5000-25,000 people. Wal-Mart has recently started to tap into the more populated urban center suburbs by building sm bother less obtrusive stores in those regions. Wal-Mart targets e genuinely age group from infants to elderberry bush citizens. Wal-Marts geographic tout ensembley places its stores in rural less populated areas with very few employment opportunities. Wal-Mart tries to attract all income levels by selling shop name items along with generic brand items. Wal-Mart approaches its global market by evaluating market potential based on economic and political risk, growth potential, and availability of real landed estate for development. In countries that had became saturated Wal-Mart use acquis itions to acquire ownership.In markets that were not saturated and land was easily sociable Wal-Mart used organic growth. The technology that Wal-Mart uses to run their line of products is unmatched. They energize a network of satellites that can hybridize a person purchase and automatically refurbish those items from suppliers without any human intervention. Wal-Mart maximizes efficiency by using effective technology to gain a competitory advantage. Wal-Mart has grown into a global empire and has bring the world largest private employer and the number one retailer in the world. Despite all of this success Wal-Mart yet has a bulky opportunity to grow.Wal-Mart continues to adapt to the ever-changing thrift by remodeling their store and by placing the guest as their number one priority. Wal-Mart took advantage of its rural locations early on and gained a significant competitive advantage, now Wal-Mart is taking on the urban environment by placing stores in the outskirts of m ajor metropolitan areas. At first local residents rejected the idea of having a Wal-Mart in their neighborhood for fear it would drive worst property value and unwanted individuals to their suburbanite neighborhood. Wal-Mart quickly resolved this problem by changing the format and size of their stores located in these regions. The only threats to Wal-Mart faces are mostly from within (eg..) lawsuits employee disputes and the threat to create unionized.Use Porters 5 Forces Model to analyze the global retailing industry. Given this analysis, is the industry attractive or unattractive? stomachyour decision.Wal-Mart is a huge threat to spic-and-span entrants. Wal-Mart has created huge barriers to new entries by offering one grab shopping. Wal-Marts Super Centers offer everything from prepared meals to sports gear. Grocery chains have taken a huge pip because of this, even Kmart is feeling the heat, there stock hit rock bottom in 2004. The discount clothes and apparels have also taken a bite from this retail giant. Wal-Mart has produced a very proficient economy of scale from incremental improvements that they have acquired since becoming so large. Manu particularures scramble to try and keep up with the huge demand that Wal-Mart places on its suppliers, this further reduces the prices of goods and services for their customers. Small-scale entries are nearly im contingent in a region where Wal-Mart is located. Large-scale entries face the retaliation factor when trying to tap into Wal-Marts market because suppliers are hale to do things the Wal-Mart way.Wal-Mart has successfully customized many of their products and forced manufactures have been forced to produce the Wal-Mart brand. Wal-Mart has taken total instruction of the bargaining power of suppliers. Wal-Mart has a small group of buyers based in Bentonville Arkansas thats in military commission of managing the purchasing of all retail stores. Wal-Mart is responsible for selling 35% of all pet food, 24% of all toothpaste, the largest volume of jewelry, groceries, DVDs, CDs, toys, guns, diapers, sporting goods, bedding, and numerous other things. This has put the retail giant in a very favorable negotiating position with suppliers.Wal-Mart has generated a huge market of loyal buyers by supplying them with the lowest affirmable prices for quality products. With Wal-Mart having such a huge share of the market and good prices there is no motivating for buyers to seek deals elsewhere. Wal-Mart has proven to be a huge threat of substitute products in several industries for fount the jewelry industry, Wal-Mart has become one of the leading jewelry dealers in the North America. Wal-Mart has also created its own brand name for several of its items that have been so successful that manufactures are forced to produce products bearing the Wal-Mart brand. Wal-Mart competitors have to be very calculated with their responses because Wal-Mart is so large it can really drive a business unde r ground (Kmart).What is Wal-Marts business-level strategy? Is the strategy appropriate to offset the forces in the industry? Do you advocate any changes? If not, brave out your decision why you would not recommend any changes.Wal-Mart uses Integrated Lost leading/Differentiation Strategy. Wal-Mart has offset the forces in the industry by creating the most efficient supply chain in the industry. Efficient production has allowed Wal-Mart to keep cost low and pass own saving to its customers. Wal-Mart has successfully used Integrated Cost Leadership/Differentiation Strategy by setting the pace in new technology and adapting quickly to new technologies in their external environment.Concentration on the needs of its core customers (discount retailers), Wal-Mart has created a friendly family environment thats economically smart and beneficial to its patrons. Flexibility is one of Wal-Marts strongest assets, which allows them to complete primary and support activities in ways that allo w them to produce somewhat differentiated products at a low cost. I would not personally recommend any changes to this strategy because it has made Wal-Mart the worlds largest retailer.What is your evaluation of the leadership at Wal-Mart?Wal-Mart has become the most successful business in the world by dint of its un-yielding leadership. Mr. Walton has laid the foundation for success for age to come. The leaders at Wal-Mart focus on providing the customer with the highest possible quality at the lowest possible cost. They have redefined the retail industry with their cutting edge technology and flexibility that is un-matched by any competitor. The fact that upper management travel in economy class shows a lot about the sheath within the organization. The leadership at Wal-Mart has made the world we live in much smaller by economic availability and convenience. The leaders at Wal-Mart are a true example of profit through customer satisfaction.Works CitedHitt, M., Ireland, R., Ho skisson, R. (2007), Strategic Management, Competitiveness andGlobalization Concepts and Cases. 7th ed. Mason Thomson South-Western(August 21, 2006). Global Labor Strategies Wal-Mart The Homefront. RetrievedSeptember 18, 2007,