Essay on Case Study Walmart

Wal-Mart is a brand that is well known around the world, especially in the USA. It has gradually developed into the largest retailer in the world. Wal-Mart’s globalization efforts have been happening rapidly. But have they been successful in all aspects of their international expansion or not? This is the main thought that is going to be discussed in this essay. The questions I will be looking at are based on a case called “Wal-Mart takes on the world” from the book of International Business The Challenge of Global Competition eleventh edition – Ball, McCulloch, Geringer, Minor, and McNett. Questions are the following:

Wal-Mart also teaches manufacturers to be more cost-effective so product prices can stay down. For example, Wal-Mart might suggest that a supplier cut its labor costs by shipping toasters in their cartons, rather than packing them in bigger boxes and

4. Relations with Suppliers- Wal-Mart has in place a system that helps to achieve their goal of lower prices. This Information Technology system includes computers, networking, and internet that cuts inventories and waste and helps with speedy delivery. This system also helps Wal-Mart to keep in constant contact with suppliers by transferring the data that suppliers need so they know what Wal-Mart needs. Wal-Mart also works with suppliers to improve their production and squeezes the best prices out of its supplier. The video referred to Wal-Mart as the customer’s agent. All of this focus Wal-Mart puts on suppliers reduces costs and lowers prices. Wal-Mart’s technological/logistical leadership remains unmatched by competitors (Web, 2005).

Wal-Mart Stores, Inc. (or Walmart as written in its new logo) is an American public corporation that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue, according to the 2008 Fortune Global 500.[5] Founded by Sam Walton in 1962, it was incorporated on October 31, 1969, and listed on the New York Stock Exchange in 1972. It is the largest private employer in the world and the fourth largest utility or commercial employer, trailing the British National Health Service, and the Indian Railways. Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business. It also owns and operates the North American company, Sam's Club.

Economies of scale. Wal-mart offers a variety of products across its brands. The multitude of products allows the retailer to share costs across the product lines.

Some of the opportunities that Walmart has, is being capable to keep the prices low, keeping the highest rating among their competitors, for example, Target. This is possible since they are able to buy directly from the vendors avoiding the intermediary and buying in bulks. Another opportunity that Walmart is concerned about is the environment; keeping this in mind Walmart is working in green initiates that follow three steps, “create zero waste, operating with 100% renewable energy and selling products that sustain our resources and the environment”. In order for Walmart to compete with the new era, they started to grow fast in online shopping, giving the customers the opportunity to choose to deliver to their homes, or they can go and pick

They also process returns, refunds, and rebates quickly. For the security conscience, Wal-Mart offers the latest in online credit card security. So shopping online can be convenient and safe right from you home. They also offer a safe, secure and complete website where consumers can purchase all of the same products found in the store. The website has proven to be a great strength for Wal-Mart. Not only is it a means for purchasing products, but is also a very thorough informational site. Consumers can log onto www.walmartstores.com and search company financials, find employment, learn about the history of Wal-Mart, email the company about problems, and learn about any recalls of products sold through Wal-Mart.

Productivity is very important to any successful business. Wal-Mart has increased its productivity through many different advances. Business analysts have long admired Wal-Mart's logistics management, even though the public recognizes them for their low discounted prices. Wal-Mart has always been resourceful at moving and stocking goods, building its stores as branches around distribution center hubs. But, instead of simply

Wal-Mart use telecommunications to link directly from their stores to their central computer system and from that system to its supplier’s computers. This allows automatic reordering and better coordination. Knowing exactly what is selling well and coordinating closely with suppliers permits Wal-Mart to tie up less money in inventory than many of their competitors.

Wal-Mart plans to work closer with their local and national suppliers to provide a direct access to their products as well as to help the under budgeted consumer afford the necessary needs for their families. Throughout the United States, Wal-Mart has went under plenty of reconstruction in order to help the customer feel comfortable shopping while they are looking for their specific needs. Heavy relocation of multiple products helped categorize their services to enhance the consumer from not searching everywhere for certain items.

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,

In the future Wal-Mart Stores Inc. will continue to expand and respond to growing technology. Improving efficiency will enable us to provide products to all of our customers at everyday low prices.

Wal-Mart is a successful retail corporation that is known worldwide. The retail company has created economic benefits for consumers that are extremely tremendous. Wal-Mart has provided more choices for consumers at lower prices in communities where local retail monopolies were evident prior to this retail chains arrival. This company operates their retail stores in numerous formats worldwide. Their commitment is saving people money so they can have better lives. With that being said, we will begin by analyzing Wal-Marts environment

Over the years Wal-Mart has been highly successful and a very profitable company in the stock markets. There are many reasons behind Wal-Mart’s success story, initially it kept expanding at a drastic speed and started covering large metropolitan areas. Secondly Wal-Mart figured out the golden rule of buying cheap from overseas and selling at rock bottom prices to the American public. Adapting to the local customs and culture, having joint ventures with established banks and fast food chains like McDonalds and Subway surely helped them sustain their success, being flexible with prices and willingness to change and understanding the serious threat from the local competition are few of the many reasons why Wal-Mart is on the top.

Wal-Mart was founded in 1962 by Sam Walton in Roger, Arkansas. Wal-Mart has 4,100 stores and clubs in the U.S. and a total of 7,300 unit’s world wide. It employed about 2 million associate’s world wide and approximately 1.4 million in the United States. Wal-Marts average annual total revenue rate was slightly more than 10% for the three years from the fiscal year ending 2006 to the fiscal year ending 2008. They also had a stock split of 100 %; they saw this split 11 times during the periods of 1971 through 1999. They have received numerous awards and were ranked 5th in Fortune magazine’s “Global Most Admired All-Stars” as the third most admired company in America (Wal-Mart, 2008).