Walmart Case Study

5373 Words Oct 31st, 2009 22 Pages
Question 1) Determine the Core Competences of Wal-Mart. Substantiate your answer.

In order to determine the core competences of Wal-Mart, I will first need to conduct an internal analysis of Wal-Mart before we could identify the core competences of the company. The internal analysis consist of a few components, first we will have to identify the resources available to the company, followed by the capabilities of the company. After which I will put the capabilities through a numbers of models to determine if they “fit the bill” to be considered as a core competency of Wal-Mart. I will start by first identifying the resources.

The resource available to any companies compromises of two component, the first being Tangible resources,
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This subsequently grew into a complex communication network that included all stores, headquarters, and distribution centres, as well suppliers. This high level degree of connectivity enables swift responses to inventory needs, and reduces the amount of inventory required. • Customer Experience - a broad area of expertise is the customer experience, which includes the degree of customer intimacy, community building, and one-to-one marketing. Wal-Mart has successfully created a “community feel” within its bricks-and-mortar stores, and by virtue of their one-stop centre concept and comprehensive information management systems, it has enable them to garner valuable knowledge of consumer purchasing habits and customise their product to cater to the consumer’s needs. • Employee education & retention - Wal-Mart refers to its employees as "associates," and encourages managers to think of themselves as "servant leaders.” which is in line with the “people first” philosophy promoted by Sam Walton. Wal-Mart also empower employees through free trainings and promotions are usually done from within, moving lower level staff to higher level, which in turns provides them with a long term view within the company as there is a clear career path ahead. • Economic of scales – Due to its large size, the order of huge quantities from its suppliers, combine that with a highly efficient and effective stock control system help make Wal-Mart's operating costs lower compared that

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