Wal-Mart Strategic Audit

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Wal-Mart Stores, Inc.: Under Attack (2006)
Strategic Audit
Jessica Brown
Sue Dobbs
Elaine Edwards
Catherine Oden
Wal-Mart Current Strategies
Offering products at everyday low prices is one of Wal-Mart’s many strategies. The company value chain helps identify activities associated with how Wal-Mart achieves their many strategies. First, Wal-Mart’s supply chain management is extremely cost effective. For example, Wal-Mart has been known to imitate competition’s successful merchandising concepts. Another cost-effective method in Wal-Mart’s supply chain management is their ability to track the movement of products through the entire value chain. Whether the product is in shipment, in distribution center inventory, in-store
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Strategic Evaluation of Alternatives
Higher Margin Target Market
Wal-Mart has always had a smaller margin 30%, compared with Target at 45%, on discretionary items, like furniture, electronics, sporting goods, entertainment and apparel. Wal-Mart can attract the style conscious consumer a few different ways. One way is by offering high-quality clothing items. This can be done by scouting out up and coming high-end designers at fashion/art schools and working with them to design clothing lines that would appeal to not only the Wal-Mart shoppers but also the urban market consumers to bring in more upscale customers and wider profit margins. Styles and variations can be done by target marketing, by age, income, lifestyles. Then pricing structures and marketing methods can be set up for each dominant market. The pros for this strategy are simple, profit and a diversity among the consumers; attracting a different kind of customer. By attracting this target market you open the door to more crowded stores, possible price increases, and thereby you may find the original Wal-mart consumer shopping elsewhere.
By using a functional strategy to implement unionization, Wal-Mart’s perceived image would change dramatically. They would be viewed publicly as a caring employer that wants to offer the best benefits to its associates,

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