14/10/2011
Wal-Mart Case Study Strategy Management Presented By Group 6, Section D Name Roll No.
Abhishek Suryawanshi 2011PGP913
Aditya Kiran Nori 2011PGP514
Pankaj Gupta 2011FPM09
Abhishek R Pai 2011PGP508
Snehal Jogdand 2011PGP667
Someswar Basak 2011PGP891
Shriraman S 2011PGP879
14/10/2011
Wal-Mart Case Study Strategy Management Presented By Group 6, Section D Name Roll No.
Abhishek Suryawanshi 2011PGP913
Aditya Kiran Nori 2011PGP514
Pankaj Gupta 2011FPM09
Abhishek R Pai 2011PGP508
Snehal Jogdand 2011PGP667
Someswar Basak 2011PGP891
Shriraman S 2011PGP879
Executive Summary
Wal-Mart was a chain of discount stores that operated from several locations within the United States. Discount stores were those which sold merchandise at unprecedentedly low margins. To sustain this, they cut costs to the bone. Furthermore, In order to control the costs of goods sold, it built its own warehouses, through which it could buy in volume at attractive prices and store the merchandise.
Initially started in small southwestern towns, Wal-Mart rapidly expanded into several towns, and later into metropolitan areas in the country. A majority of Wal-Mart’s stores were located in towns with population between 5000 and 25000. Also, about 1/3 stores were located in areas which were not served by any of its competitors. Wal-Mart slowly expanded into densely populated areas with larger sized stores. However, due to increasing competition in these areas, Wal-mart also entered towns with populations between 1000 and 5000 with smaller sized stores.
Wal-Mart followed a methodology of centralized purchasing where requests were wired directly from the stores to the central computer, which were then transmitted to the distribution center. The central computer was also linked to all of Wal-Mart’s