'Case Study Wal-Mart Essay\r'

'Evaluate the general environment of Wal-Mart use the framework in Chapter 2. What are the key opportunities and threats lining Wal-Mart? (This is the â€Å"OT” of a SWOT analysis)Wal-Mart’s builds its stores in towns with a population size of 5000-25,000 people. Wal-Mart has recently started to tap into the such(prenominal) populated city suburbs by building little less obtrusive stores in those regions. Wal-Mart targets ein truth date group from infants to senior citizens. Wal-Mart’s geographically places it’s stores in rural less populated areas with in truth few employment opportunities. Wal-Mart tries to attract all income levels by selling brand discover items along with generic brand items. Wal-Mart approaches its global grocery by evaluating securities application potential based on economic and policy-making risk, growth potential, and availability of real estate for development. In countries that had became saturated Wal-Mart use acqu isitions to acquire ownership.\r\nIn markets that were non saturated and land was easily accessible Wal-Mart utilise organic growth. The technology that Wal-Mart uses to run their ch group Aionship is unmatched. They obligate a network of satellites that whoremaster track a person purchase and automatically refurbish those items from suppliers without both human intervention. Wal-Mart maximizes efficiency by using in effect(p) technology to gain a competitive advantage. Wal-Mart has grown into a global empire and has become the macrocosm largest private employer and the number bingle retailer in the world. Despite all of this success Wal-Mart still has a huge opportunity to grow.\r\nWal-Mart continues to adapt to the ever-changing thriftiness by remodeling their store and by placing the customer as their number one priority. Wal-Mart took advantage of its rural locations archaean on and gained a significant competitive advantage, promptly Wal-Mart is taking on the urban environment by placing stores in the outskirts of major metropolitan areas. At jump local residents rejected the idea of having a Wal-Mart in their neighborhood for fear it would drive down holding value and unwanted individuals to their suburbanite neighborhood. Wal-Mart quickly resolved this riddle by changing the format and size of their stores locate in these regions. The only threats to Wal-Mart grimaces are mostly from at bottom (eg..) lawsuits employee disputes and the threat to become unionized.\r\nUse Porter’s Five Forces Model to analyze the global sell industry. Given this analysis, is the industry attractive or unseductive? Support your decision.\r\nWal-Mart is a huge threat to reinvigorated entrants. Wal-Mart has created huge barriers to reinvigorated entries by offering one stop shopping. Wal-Mart’s Super Centers offer everything from prepared meals to sports gear. Grocery chains affirm interpreted a huge hit because of this, even Kmart is fee ling the heat, there stock hit rock bottom in 2004. The discount c assignhing and apparels have also taken a bite from this retail giant. Wal-Mart has stird a very proficient economy of scale from incremental improvements that they have acquired since becoming so large. Manufactures scramble to try and bread and butter up with the huge demand that Wal-Mart places on its suppliers, this set ahead reduces the prices of goods and services for their customers. Small-scale entries are nearly unfeasible in a region where Wal-Mart is located. Large-scale entries face the retaliation factor when trying to tap into Wal-Mart’s market because suppliers are forced to do things the Wal-Mart way.\r\nWal-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 control of the bargaining indicant of suppliers. Wal-Mart has a small group of buyers based in Bentonville Arkansas that’s in charge of managing the acquire of all retail stores. Wal-Mart is responsible for selling 35% of all pet food, 24% of all toothpaste, the largest flashiness of jewelry, groceries, DVDs, CDs, toys, guns, diapers, sporting goods, bedding, and numerous other things. This has put the retail giant in a very complimentary negotiating position with suppliers.\r\nWal-Mart has generated a huge market of firm buyers by supplying them with the grimest possible prices for shade products. With Wal-Mart having such a huge share of the market and good prices there is no need for buyers to try out deals elsewhere. Wal-Mart has proven to be a huge threat of substitute products in several industries for fashion model 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 on a lower floor ground (Kmart).\r\nWhat is Wal-Mart’s business-level strategy? Is the strategy attach to offset the forces in the industry? Do you suggest any changes? If non, support your decision why you would not root on any changes.\r\nWal-Mart uses Integrated Lost lead/Differentiation system. Wal-Mart has offset the forces in the industry by creating the most efficient supply chain in the industry. Efficient production has yielded 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 outer environment.\r\nConcentration on the needs of its core customers (discount retailers), Wal-Mart has created a friendly family environment that’s economically alacrity and beneficial to its patrons. Flexibility is one of Wal-Mart’s strongest assets, which allows them to recognise primary and support activities in ways that allow 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.\r\nWhat is your evaluation of the leadinghip at Wal-Mart?Wal-Mart has become the most successful business in the world through its un-yielding leadership. Mr. Walton has laid the grounding for success for years to come. The leaders at Wal-Mart concentrate on 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 turn on in economy class shows a lot about the character within the organization. The leadership at Wal-Mart has made the world we live in much smaller through economic availability and convenience. The leaders at Wal-Mart are a true example of profit through customer satisfaction.\r\nWorks Cited\r\nHitt, M., Ireland, R., & Hoskisson, R. (2007), Strategic Management, Competitiveness and globalization: Concepts and Cases. 7th ed. Mason: Thomson South-Western(August 21, 2006). Global Labor Strategies: Wal-Mart: The Homefront. RetrievedSeptember 18, 2007,\r\n'