Wal-Mart
HANOI UNIVERSITY
FACULTY OF MANAGEMENT AND TOURISM
STRATEGIC MANAGEMENT
GROUP REPORT: WAL-MART LOW-COST STRATEGY ANALYSIS
Lecturer: Mr. Le Dang Hoang
Tutor:Ms. Do Thi Ha Lan
Tut 1TR10
Group member: Tran Viet Anh 1006090006
Nguyen Tra My 1006090034
Dao Minh Tam 1006090045
Cao Thi Thuong 0907010220
Table of content Introduction 3 I.The implementation of strategy in the company 4 II. Archievement of Wal-Mart thanks to low-cost strategy 8 III. Competition of Wal-Mart with rivals 9 a. Rivals reactions to Wal-Mart strategy 9 b. Wal-Mart’s respond to rivals’ competitive moves and market changes 12 References 14
Introduction
It was the late 40s that people of the America were full of hope: The World War II ended. Jobs were plentiful, wages were higher, and because of the lack of consumer goods during the war, Americans were eager to spend. The economy shifted from a military emphasis to adapt to the rise of American Consumerism. Many industries successfully converted to produce goods for everyday life such as vehicles, household appliances and baby care product. GDP of the USA increased from $200,000 million in 1940 to $300,000 million in 1950 and $500,000 million in 1960 (George Clark, 2006). As many people who wanted to change their life after 4 years of war, on May 9, 1950, Sam Walton purchased a store from Luther E. Harrison with a one-day remodeling sale. The store renamed “Walton 's 5 & 10” and located in Bentonville, Arkansas to take advantages of the different hunting season of four states: Oklahoma, Kansas, Missouri, and Arkansas. On July 2, 1962, Wal-Mart Discount City store, the first Wal-Mart store was opened; followed immediately by continuous boom of other stores and phenomenal successes that changed the whole world. In 2012, with the unshakable foundation “The Lowest Price Anytime, Anywhere”, Wal-Mart celebrated 50 years of helping people save money so they can live better. Employing 2.2 million
FACULTY OF MANAGEMENT AND TOURISM
STRATEGIC MANAGEMENT
GROUP REPORT: WAL-MART LOW-COST STRATEGY ANALYSIS
Lecturer: Mr. Le Dang Hoang
Tutor:Ms. Do Thi Ha Lan
Tut 1TR10
Group member: Tran Viet Anh 1006090006
Nguyen Tra My 1006090034
Dao Minh Tam 1006090045
Cao Thi Thuong 0907010220
Table of content Introduction 3 I.The implementation of strategy in the company 4 II. Archievement of Wal-Mart thanks to low-cost strategy 8 III. Competition of Wal-Mart with rivals 9 a. Rivals reactions to Wal-Mart strategy 9 b. Wal-Mart’s respond to rivals’ competitive moves and market changes 12 References 14
Introduction
It was the late 40s that people of the America were full of hope: The World War II ended. Jobs were plentiful, wages were higher, and because of the lack of consumer goods during the war, Americans were eager to spend. The economy shifted from a military emphasis to adapt to the rise of American Consumerism. Many industries successfully converted to produce goods for everyday life such as vehicles, household appliances and baby care product. GDP of the USA increased from $200,000 million in 1940 to $300,000 million in 1950 and $500,000 million in 1960 (George Clark, 2006). As many people who wanted to change their life after 4 years of war, on May 9, 1950, Sam Walton purchased a store from Luther E. Harrison with a one-day remodeling sale. The store renamed “Walton 's 5 & 10” and located in Bentonville, Arkansas to take advantages of the different hunting season of four states: Oklahoma, Kansas, Missouri, and Arkansas. On July 2, 1962, Wal-Mart Discount City store, the first Wal-Mart store was opened; followed immediately by continuous boom of other stores and phenomenal successes that changed the whole world. In 2012, with the unshakable foundation “The Lowest Price Anytime, Anywhere”, Wal-Mart celebrated 50 years of helping people save money so they can live better. Employing 2.2 million
References: 1. George Clack, Alonzo L. Hamby (29-10-2006). Outline Of U.S. History. US: Nova Publishers. 193. 2. Sailee Kale, “How does Walmart keep its price so low” [online] Available at URL: http://www.buzzle.com/articles/how-does-walmart-keep-its-prices-so-low.html (Accessed March 11th, 2013) 3 4. Quoc Dung, “Amazon – Wal-mart khốc liệt cuộc chiến bán lẻ” [online] Available at URL: http://vef.vn/2011-12-30-amazon-walmart-khoc-liet-cuoc-chien-ban-le (Accessed March 14th, 2013) 5 6. Mike Ferlazzo, “To compete with Wal-Mart, local stores find niche” [online] Available ar URL: http://www.futurity.org/society-culture/to-compete-with-wal-mart-local-stores-find-niche/ (Accessed March 12th, 2013) 7 8. VN&TQ, “Các hãng bán lẻ cạnh tranh với “ông lớn Wal-mart” [online] Available at URL: http://www.stockbiz.vn/News/2009/6/4/40102/cac-hang-ban-le-canh-tranh-voi-ong-lon-wal-mart.aspx (Accessed March 12th, 2013) 9 12. Sean Gregory / West Deptford, N.J. , “Walmart 's Latest Move to Crush the Competition“ [online] Available at URL: http://www.time.com/time/business/article/0,8599,1920698,00.html (Accessed March 13th, 2013) 13 14. Nhat Vy, “Nghệ thuật để Wal-Mart trở thành tập đoàn lớn nhất thế giới” [online] Available at URL: http://vietbao.vn/Kinh-te/Nghe-thuat-de-Wal-Mart-tro-thanh-tap-doan-lon-nhat-the-gioi/20477369/48/ (Accessed March 9th, 2013) 15