Wal-Mart: Strategic Management

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Wal-Mart: Strategic Management An in depth analysis of Wal-Mart and its global strategic management and electronic distribution Analysis for Business Policy: Strategic Management. Instructor: Dr. M. Reitzel, DeVry University, February 2007, Austin, TX. Members of the Team: Marcus Bedford Jon Cable Wayne Oulicky Constince Sanchez Table of Contents: Executive Summary.……………………………………………………………….2 Problem Statement ………………………………………………………………...2 Situational Description and Strategic Analyses …………………………………...3 Strategic Analysis Overview & History.……………………………………………..3 External Environment.……………………………………………6 Internal Environment.…………………………………………….6 Intellectual Assets.……………………………………………......9 Strategic Formulation Business Level…show more content…
Sears targeted middle class families and expanded its overhead. WalMart's strategy was to compete with its rivals and lower overhead expenses. Compared with -3- Sears, who consisted of more than 6,000 distribution centers, Wal-Mart had only 2,500 comparable units.”iii Although Wal-Mart was under financed, it managed to have 30 stores in the 8 years. In order to sell the merchandise at a low rate, Wal-Mart’s purchasing cost must also be at a low rate. However, suppliers and vendors were not willing to supply merchandise at the rate Wal-Mart was asking. As result of this he built warehouses so that merchandise can be bought in bulk at a cheaper price because of the large volumes. At the same time Wal-Mart needed to expand, but did not have enough capital. Sam decided to go public to raise capital. Over all, while his competitors were under the impression that Wal-Mart’s business model will not be successful, Sam has taken the advantage of the time and strategically placed his business to grow. Sam was also able to convince his establish an internal culture in order have everybody on the same boat. This resulted in everyday low prices. He did not have any sophisticated systems, which resulted in less overhead cost. Currently, Sam’s vision has become a global company employing more than 1.8 million associates worldwide and nearly 6500 stores and clubs spanning across 14 countries. "The secret of successful retailing is to
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