Essays on WAL MART Case Study

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2. Which of the five generic strategies is Wal-Mart employing? What are chief elements of its strategy? The benchmarks for Wal-Mart strategy are strongly entrenched commitment to cost-efficient functions, daily low prices, diversified store formats, large choices, a mix of both name brand and private-label merchandise, customer satisfaction, astute merchandising, restrained advertisement. All these aspects are the main characteristic of Wal-Mart strategy, but the ones they employ frequently are: Cost-efficient operation and daily low prices: From the initial stages, and proceeding to the current situations, key executives at Wal-Mart had aggressive and strikingly followed a low-cost management strategy.

Throughout the world, no retail shops can compare with the Wal-Mart’s passion and efficiency in controlling costs and seeking new and appropriate methods of carrying out their activities effectively. Wal-Mart stress on attaining low costs spread to each and all value chain exercise, starting with major exercises associated to achieving the appropriate merchandise from several suppliers and afterwards continuing to other parts of logistics and division associated exercise related to man cutting inventory and stocking the stores of its agents. All the practices entailing the creation and functions of its retail stores while ensuring a strict restraint on the cost of selling basic and management activities.

The organization’s efficiency and abilities in ensuring its low costs permitted it to sell its merchandise at or close to rock-bottom prices (Thompson, 2008). When Wal-Mart invented the idea of daily low pricing, it made it do good work than any other discount retailer in implementing the idea. The organization was largely viewed by customers as merchandise with the lowest prices ever. Its’ pricing formula trickle down to make other discount retailers lower their prices as well in anticipation of increasing their sales, and competing effectively with Wal-Mart company.

Various studies illustrated that Wal-Mart saved US domestic household up to $2,500 per year, summing both the direct influence on purchases generated by Wal-Mart buyers, and indirect influence originating from reduced prices on the other side of other retailers to increasing their competition with Wal-Mart. Wal-Mart also employed use of multiple store formats. Under this, they have applied four various techniques in the Untied States and Canada to appeal and meet customers’ wants: discount stores for instance vary from 30,000 to 224,000 square feet, hired an average of 150 personnel, and provided a variety of up to 80,000 different items.

This are made up of family apparel, home furnishings, auto-motive goods, hardware, sporting items, electronics, health and beauty aids, jewelry, prescription drugs, toys, and pet supplies. Supercenters-on the other hand, that Wal-Mart initiated in 1998 to fulfill the requirements of one stop family, unite the idea of general merchandise discount warehouse with that of complete supermarket.

The other strategy employed by Wal-Mart is use of wide product selection and a mix of name-brand and private label merchandise. A vital feature of Wal-Mart’s plan was to offer clients with such a varied range of assortments of goods, which they would get more of what they want at suitable prices in one appropriate location. Supercenters that had a large lineup of basic merchandise alongside complete choice of supermarket products were highly a one stop shopping exercise for most customers. A considerable proportion of the merchandise, which Wal-Mart stocked, comprised of name-brand nationally advertised goods.

However, it also sale merchandise through some 20 private-label brands (Thompson, 2008).

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