Wal Mart Global Strategy

2418 Words Dec 19th, 2010 10 Pages
Wal-Mart’s Global Strategy

Overview * In the past two decades Wal-Mart has been the leading domestic retailer. In 2002, Wal-Mart stood atop the Fortune 500 for the first time. Wal-Mart’s top ranking reflects the rise of retailing as one of the most important global industries, as well as the company’s individual excellence and consistent performance. In 2001 the company had higher sales than the next four largest global retailers combined. The sales differential against U.S. based retailers is even more pronounced, as Wal-Mart top line in 2001 was more than four times that of the second largest retailer Home Depot. Its primary success has come from its excellence in customer service, supply chain management, and ability
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Despite Wal-Mart’s numerous efforts, its international division’s profitability lagged well behind that of domestic operations. This is mainly due to Wal-Mart’s inability to adapt to local cultures, maintain its excellence in customer service, and maintain low prices.
Internal Analysis
Tangible Resources * Wal-Mart operates the world’s biggest private satellite communications system. This system allows it to track sales, replenish inventory, process payments, and regulate store temperatures all in real-time. Wal-Mart has already built many stores in foreign countries. Now it just needs to manage them efficiently and adapt to the local culture.

Intangible Resources * Wal-Mart has exceptional brand reputation in the U.S. which is primarily due to emphasis on customer and community service. Wal-Mart also has excellent employee loyalty because it gives its employees profit-sharing and stock ownership plans. This helps employees to think and behave like an owner of the company.

Financial Resources * Wal-Mart has plenty of financial resources because it is the United States’ leading retailer. Profits produced by the domestic stores will help Wal-Mart improve its global operations.

Capabilities * Wal-Mart’s core competencies are its supply chain management and customer value focus. The hub and spoke

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