Walmart Case Analysis

11203 Words45 Pages
Wal-Mart, 2007 Case Analysis
International Business

Executive Summary 4
Challenges 5 Re-Aligning the Marketing Strategy for Greater Relevancy 5 Figure 1: Wal-Mart Segmentation Strategy 8 Figure 2: Customer Segment Loyalty Analysis 10 Human Resources Lack Compliance and Governance 11 Figure 3: Wal-Mart’s Chain of Command 14 Ethnocentrism Rampant In Global Growth Strategies 15 Competitive Strategies must get Beyond Price Wars 18 Wal-Mart’s Competitors 19 Figure 4: Big Box Retailing Market Shares, 2007 20 Responding To an Emerging Recession 22
Company Analysis 23 Wal-Mart Strengths 23 Wal-Mart Weaknesses 25 Wal-Mart Opportunities 26 Wal-Mart Threats 27
Industry Analysis 28 Figure 5:
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This has unfortunately been the strategy Wal-Mart has relied upon in conjunction with its LPED value proposition (Frazier, 38). As Wal-Mart has been very successful in the past with bland, low-price store interiors there is a resistance to change in terms of changing the store layouts, augmenting merchandising or significantly upgrading the shopping experience (Blanchard, Comm, Mathaisel, 169, 170). Increasing same-store sales cannot be “bought” through all these externalities and investments in store layouts. The store layout does contribute to a more pleasant shopping experience, however Wal-Mart’s most loyal shoppers come back to the store because the prices help them to make ends meet, as many have incomes at or below the per capita income of the United States (Wal-Mart Annual Reports).
The traditional logic of retailing therefore does not completely apply to Wal-Mart. The ambience of shopping is secondary to the price savings and the trust its most loyal customer segments have in the quality and availability of products. What gives Wal-Mart such a competitive advantage on pricing, availability and the quickness of rolling out new stores is their supply chain management (SCM) practices and strategies, considered one of the best worldwide (Mottner, Smith,

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