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Wal-Mart Case Study Essay

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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…
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
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