Industry Attractiveness contrasted with KSFs
Key Success Factors of Industry and company KSF
Porters 5 forces in terms of internal Walmart resources and capabilities and the external environment
Is the strategy sustainable? and Can it be duplicated by walmarts rivals
What must Walmart to to sustain its competitive advantage
Executive Summary
Walmart has thrived in a very competitive industry by building on its founding principles and developing arguably the industries best supply chain. It has integrated its sales to its suppliers, streamlined order fulfillment and driven down its costs, which is one of its key founding principles, “Our purpose is helping our customers save money so they can live better” (Grant text, 5 walmart core 5 values).
Walmart has had great success in North America, but its cultural values have not translated well in other parts of the world. Great sales growth has not translated into significant margins. Walmart has incurred losses on its international operations. Carrefour (founded in France) and Walmart both retreated from Germany.
Some of the key issues facing Walmart include adapting their founding 5 core principles to vastly different cultures; the drive to cut costs clashes with treating the employees as part of family (which part of the family has more value? Is treated with integrity?); the drive to cut costs has been driven far down the supply chain to a myriad of suppliers, sub-suppliers and sub-sub-sub suppliers….how can Walmart audit or control these suppliers…standards imposed by Walmart?
Current Situation
Brief History
Walmart has grown over the past 50 years from a local ‘general merchandiser’ with 15 stores in Arkansas to become the largest in the world with over 10,000 stores world-wide. Wal-Mart’s six market segments are: groceries; fashion clothes; pharmacy; health clinics; financial services; and music downloads. Its main North