Wal Mart case study analysis :: essays research papers

Central IssueThe main issue veneering the focussing of Wal Mart was how to sustain their extraordinary growth. As the domestic grocery reaches saturation, a strategy for at home and for global expansion testament be necessary.RecommendationWal-Mart needs to identify and nurture the primary affectionateness competency that fueled their growth fulfilling customer needs with a entire spectrum of products at everyday low prices. This competency is the product of the aggregate of competencies crossways individual skill sets and organization boundaries Wal-Mart is a leader in give management, line of descent control, distribution and customer service. This is a result of the companys ability to coordinate a complex information management and distributing interlock and to efficiently manage supplier relations, through the use of new technologies and the unseamed flow of information. Wal-Marts extensive communications network connects all stores, wargonhouses, offices and supplier s. This enables Wal-Mart to non only provide mensurate to its customers by offering a capacious variety of goods at the lowest prices, but similarly to provide value to its suppliers as a large, ever present bridle-path for sale of goods. This channel also provides a highly efficient feedback loop on building block sales, demand and inventory, facilitating a just in time supply management system and an effective needs-based position. Through careful bargaining and sheer-size, Wal-Mart has power all over the suppliers, and can purchase goods cheaper than the competition. Wal-Mart can also differentiates through private branding, i.e. surface-to-air missiles Choice. In addition to the added differentiation, they can become less dependent on branded manufacturers, further eroding the power that suppliers may wield. This also allows them to exploit their initial strategy of opening stores in rural areas that were traditionally neglected, by maintaining a steady supply of low pr iced goods with low inventory costs. This raises the barriers to entry. By offering such a broad spectrum of products at the lowest prices, Wal-Mart reduces the threat of bargaining power of buyers.Wal-Mart was a leader in uniform Product Codes scanning. For the two years that it took K-Mart to implement their system, Wal-Mart had, at least temporarily, a competitive advantage that was both priceless and rare.Another characteristic that is valuable and difficult to imitate a loyal and motivated workforce. It requires time to contract a company culture of dedication and commitment to hard work. Providing value to the customer through low prices and excellent customer service, the threats of substitution are reduced. Customers wont switch to competitor chains.