Wal Mart case study analysis :: essays research papers

Central IssueThe main issue facing the management of Wal mart was how to sustain their extraordinary growth. As the domestic market reaches saturation, a strategy for at home and for global expansion will be necessary.RecommendationWal-Mart need to identify and nurture the primary core cleverness that fueled their growth fulfilling customer needs with a dewy-eyed spectrum of products at everyday low prices. This competency is the product of the aggregate of competencies across individual skill sets and organization boundaries Wal-Mart is a leader in channel management, inventory control, distribution and customer service. This is a reply of the companys ability to coordinate a complex information management and distributing network and to efficiently manage supplier relations, through the use of rude(a) technologies and the seamless flow of information. Wal-Marts extensive communications network connects all stores, warehouses, offices and suppliers. This enables Wal-Mart to n ot only provide value to its customers by offering a wide variety of goods at the lowest prices, but as well to provide value to its suppliers as a large, ever present channel for sale of goods. This channel also provides a highly efficient feedback loop on unit sales, demand and inventory, facilitating a just in time supply management system and an powerful needs-based position. Through careful bargaining and sheer-size, Wal-Mart has power over the suppliers, and can purchase goods cheaper than the competition. Wal-Mart can also differentiates through private branding, i.e. Sams Choice. In auxiliary 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 crack stores in rural areas that were traditionally neglected, by maintaining a steady supply of low priced goods with low inventory costs. This raises the barriers to entry. By offering such a grand 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 to the lowest degree temporarily, a competitive advantage that was both valuable and rare.Another characteristic that is valuable and difficult to imitate a loyal and motivated workforce. It requires time to break in 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.