StudentShare solutions
Triangle menu

Stategic Management in Wal Mart - Case Study Example

Not dowloaded yet

Extract of sample
Stategic Management in Wal Mart

The basic model for Wal-Mart had thus been created.
There were a number of competitors for Wal-Mart however, companies such as Mammoth Mart, WT Grant and Woolco were already successful within the field, but through Walton's business expertise, luck and vision they eventually fell to the competition that Wal-Mart offered them. Porter's Five Force Model is a useful tool for analyzing what Wal-Mart faced as it began to move into competition with much larger retailers during the 1950's and 1960's. Thus the overall category of "rivalry" was based upon a combination of a number of forces, including supplier power, threat of substitutes, buyer power and barriers to entry.
These forces were fairly fluid and easy to negotiate if Wal-Mart came up against them because the sector was fairly new and still in the process of bring molded into more rigid characteristics. Thus Sam Walton was able to create his own supplier relationships in the first few decades of the company through adapting the existing model to his own ends. Wal-Mart was able to create its highly one-sided supplier relationships through the fact that it became the largest potential market for such suppliers.
There were no barriers to entry for Wal-Mart because Walton chose to locate many stores in areas that other retailers normally avoided. Thus the poorer, smaller rural towns where many Wal-Marts became so successful largely offered no competition for the company. The economic landscape was essentially open for an entrepreneurial approach as Walton envisaged and put into action across the country. Walton's practice of locating Wal-Marts in areas which did not offer other large discount retailers also meant that the threat of substitution did not exist in most of these early stores. The Wal-Mart model was allowed to develop, adapt and come to maturity without constant concern from new competition within the area. When it did occur, Walton would study the competition and take what he could from it, instituting the most worthwhile elements within Wal-Mart itself.
Wider business and economic conditions were also favorable for the development of a company such as Wal-Mart during the 1950's. This was the period when the American suburb was starting to appear and to expand exponentially with the growth of the economy. People were becoming used to traveling further for work, school, entertainment and shopping. The car culture that was associated with this was an ideal complement to the development of Wal-Mart. People were prepared to drive a few miles further to get the cheaper prices that were offered by Wal-Mart. This enabled Walton to establish Wal-Marts on some of the cheapest land available and thus increase the return on the investment and/or keep prices low.
Along with suburban development came less of sense of "community" for many people: they did not know their next door neighbors, nor had they any sense of a town shopping center that they would be loyal to. Being on a first name basis with a shop keeper was of less importance than finding the cheapest prices possible. Along with the cheap prices came a wider range of consumer goods that households wanted to buy for their houses. Thus Wal-Mart could offer a sheer range of goods that were not offered by other stores because there were more goods to be made ...Show more

Summary

The discount retailing industry was an attractive prospect for any new company with new ideas that wished to enter it during the 1950's. The model for discounting existed, but was ripe for perfection and development by the right company. That was Wal-Mart.
Author : ioreilly
Stategic Management in Wal Mart essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Stategic Management in Wal Mart"
with a personal 20% discount.
Grab the best paper

Related Essays

Wal-Mart
Wal-Mart Case Study 1. What threats and challenges is Wal-Mart currently facing? Wal-Mart Stores Inc. is an American multinational that runs a chain of discount department stores and warehouse stores. It is a powerful retail brand which is operating in 15 countries worldwide and is catering to millions of customers who shop in their stores around the world (Walmart Corporate, 2011).
5 pages (1250 words) Case Study
Wal-Mart Business Model
It establishes financial goals, revenues, expenses and profits. (Citibank 2006) Wal-Mart started almost 50 years ago in 1962, when Sam Walton opened its first discount store in Rogers, Arkansas. Wal-Mart's business then was to offer at retail quality merchandise at the lowest prices and the best customer service possible.
3 pages (750 words) Case Study
Wal-Mart Business Operations
Factors in the industry environment include: threat of new entrants, power of suppliers, power of buyers, product substitutes, and intensity of rivalry. Together with the competitor environment, these factors make up the external environment. Tools for analysing the external environment include: PESTEL for the general environment.
8 pages (2000 words) Case Study
Strategic Marketing Management of Wal-Mart
The organisation possesses a large customer base in U.S., which constitutes nearly one-third of the population. The company operates all over the world through 7800 Wal-Mart stores and Sam's Club warehouses. Being the largest retailer in the world, Wal-Mart is responsible for the introduction of a series of job opportunities globally.
14 pages (3500 words) Case Study
Wal-Mart Marketing
Low or affordable pricing and mass marketing became its hallmark. Due to large volumes Wal-Mart was able to manage its competitive edge. However, things started changing on the retail landscape in America and elsewhere demanding a more focused approach towards different target markets.
6 pages (1500 words) Case Study
Wal-Mart
(Wal-Mart) On October 31, 1969 Wal-Mart was established as a corporation under the name Wal-Mart Stores, Inc. Very soon after in 1970, this was followed by the opening of Wal-Mart's business headquarters in Bentonville, Arkansas and the opening Wal-Mart's very first distribution center.
4 pages (1000 words) Case Study
Inventory management at WAL-MART
Wal-Mart Stores, Inc. is now the world's largest retailer and the world's largest company with over three hundred and twelve billion US dollars earned in sales annually. It employs over one point three million contacts in the United States and more than four hundred thousand internationally (Frat Files).
4 pages (1000 words) Case Study
Wal-Mart Case
He depicts the investment potential by allotting financial ratings. He makes budgets and plans to get rid of debt and decided whether the investment in this era will be profitable or not. He keeps all
2 pages (500 words) Case Study
Wal-Mart
Wal-Mart was forcing its employees to work during their lunch breaks and after the shift was over without compensating the workers. The action was unethical, inhumane, and
2 pages (500 words) Case Study
Wal-Mart
The firm has carried out several unethical practices, which have inflicted harms on their stakeholder but instead provides them with
4 pages (1000 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation