StudentShare solutions
Triangle menu

Wal-Mart Business Model - Case Study Example

Nobody downloaded yet

Extract of sample
Wal-Mart Business Model

It set-up giant all-in-one stores in small towns which quickly gained patronage because of the service that Wal-Mart associates provide and customers are able to buy the products they need in one convenient place. Today, Wal-Mart is the world's largest retailer with $345 billion in sales, with more than 176 million customers per week visiting its more than 6,500 stores worldwide, 61,000 suppliers and providing more than 3 million American jobs. (walmartstores.com 2008)
Wal-Mart's continuing success may be attributed to Sam Walton's foresight in including information technology in its business model to facilitate organizational innovation. As early as 1966, Walton was recruiting IT professionals from IBM to help him wire his company. This led to innovations in just-in-time inventory, choreographed logistics and warehousing. (Beckham 2002)
Wal-Mart's business model mandates that it provides the products and services that customers would want to buy. With the company's enormous data warehouse which includes customers' purchases, Wal-Mart knows what its customer wants and "it provides merchandise and designs its stores according to customer preferences." (Felgner 2006) In support of its objective of customer satisfaction, through technology, Wal-Mart is able to process more than 20 million customers per day, with credit card approvals done in less than a second. (Scheraga 2004) In 2000, Walmart.com was founded. Aside from fostering the ideals of its parent company, its additional goal is to provide easy access to more Wal-Mart with "more than 1 million products available online" and innovative services such as Music Downloads and Photo Services which allow customers to order online and pick-up at the nearest Wal-Mart, all available to Wal-Mart's customers 24/7. (walmart.com 2008)
In 2001, Wal-Mart worked with NCR for the design and deployment of kiosks in the stores to help customers scan in items for bridal and baby registries, an innovation to improve customer service. According to Walton, "People think we got big by putting big stores in small towns. Really, we got big by replacing inventory with information." (Beckham 2002) In its industry, Wal-Mart is acknowledged for its legendary replenishment and forecasting system which Ron Ireland, one of the people who built it, says is what "retailers are scrambling to do today what Wal-Mart achieved years ago." (Hickey 2006) Because of Wal-Mart's use of technology, its inventory accuracy is above 96% vs. 70% for other food retailers. Wal-Mart has improved in-stocks, reduced holding inventory, reduced manual intervention and achieved much greater profit margins, according to Ireland. (Hickey 2006) All these cut down Wal-Mart's cost of operations and contribute to lowering selling prices for its customers.
With Wal-Mart's employment of technology and e-Business practices of integration and synchronization among connected players, it is able to achieve operational efficiency and revenue enhancement, according to Ralph Drayer, former vice-president of Procter & Gamble. (Hickey 2006) "Wal-Mart's success is due not just to computers, but many other things besides: the late Sam Walton's entrepreneurship; his strategy of avoiding early competition by 'putting good-sized discount stores into little one-horse towns which everybody else was ignoring"; his insistence on saturating one area with stores before moving on to the next; his drive to keep costs ...Show more

Summary

A business model concretizes the nature and ideas of a business and defines its goals. It identifies the products and services that the business will provide as well as those that it needs to operate. It firms up the plan on what the business will do and how it will work…
Author : augustusbernhar
Wal-Mart Business Model essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Wal-Mart Business Model"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Wal-Mart Stores Inc. in 2008: Management's Initiatives to Transform the Company and Curtail Wal-Mart Bashing
Wal-Mart is considered to be one of the largest retailers of the world with a formidable brand image. The company was established in the year 1962 in USA. Since then the organization has rapidly expanded over the years to emerge as one of the most formidable brands of the world.
8 pages (2000 words) Case Study
WalMart Case Analysis using Porter's (2008) Model & Lee and Whang's (2001) Framework
What are Wal-Mart's competitive advantages? How sustainable are those advantages. Use Porter's (2008) model for this analysis.  Competitive Advantage Wal mart competitive advantages are its distribution capabilities. One of the activities of Wal mart was efficient distribution.
3 pages (750 words) Case Study
Wal-Mart: The High Cost of Low Price
It also retails products through its online site. The company is headquartered in Bentonville, Arkansas and employs 1,800,000 people. The company recorded revenues of $315,654 million during the fiscal year ended January 2006, an increase of 9.6% over 2005.
9 pages (2250 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
Internal Analysis of Wall-Mart
It is these resources and capabilities that make a firm successful and distinct from other players in the market. This paper studies the resources and capabilities of Wal-Mart the giant retail chain store and makes a report on how the company can take advantage of its internal strengths and the opportunities the industry offers.
6 pages (1500 words) Case Study
Stategic Management in Wal Mart
Discount stores had begun to charge gross margins 10-15% lower than comparable stores who retailed in a more traditional manner. They had managed to do this by cutting costs - the physical plant and fixtures were very down-market and ancillary services such as delivery and credit were cut back on or were totally absent.
10 pages (2500 words) Case Study
Case 22: Wal-Mart Stores Inc. in 2008: Management's Initiatives to Transform the Company and Curtail Wal-Mart Bashing, by Arthur A. Thompson, C367C400
The success story of Wal-Mart has been traced to its strategy of providing everyday low prices to its customers. The company has been able to sustain this strategy
8 pages (2000 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
Retail Internationalization: Gaining Insights from the Wal-Mart Experience in South Korea
The retailer’s mission is to ‘Help People Save Money So They Can Live Better’. The immensely successful Wal-Mart could not replicate its business model in South Korea. The company’s stint in East Asian nation lasted less than a
2 pages (500 words) Case Study
Hire a pro to write
a paper 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)
Click to create a comment
Contact Us