Walmart Case Study
CASE STUDY: WALMART
I. Executive Summary
Walmart, biggest retail discounted store established by Sam Walton in 1950 has mark a remarkable success in the US. His strategy of purchasing in high volume while selling low and still gain a mark up made it more popular that made it enviable to competition. Secret to his concept is high volume purchases, efficient logistics, and advanced supply chain technology, which significantly reduced cost and maximize economies of scale. From its first store in 1950s to supercenter in ’88, to great expansion in ’95, spread in 15 countries in ’05, and global reach for 50th anniversary in 2012. Under new leadership of CEO Mike Duke, the ambitious plan of expansion comes to play given the greatest challenges in legal, economic and political issues.
II. Statement of the Problem
While Walmart made a tremendous success in the retail stores, how can they support and carry out the plan of global expansion given the political and economic challenges.
III. Case Objective
To suggest tangible strategic plans towards the realization of the dream of having a global reach in 2012.
IV. Case Analysis
SWOT Analysis
External Factors Opportunities | Threats | * Global Expansion * Newly Opened Stores in US * Strong per capita income * Big money spending of consumers * Larger market reach thru online access | * Competition * Political issues and govt positions * Govt regulations * Market saturation * Economic reccesion | Strengths | Weakness | * Big/ large discount offers * International advantage * Interstate reach * Leverage on suppliers * Brand Loyalty and name recall * Wide variety of choices: house brands and signature brands * Extensive choices of goods | * No standard store layout * No big parking spaces to accommodate multitudes especially over the weekends * |
V. Altenative Courses of Action
Alternative no.1- To intensify store operations of existing
I. Executive Summary
Walmart, biggest retail discounted store established by Sam Walton in 1950 has mark a remarkable success in the US. His strategy of purchasing in high volume while selling low and still gain a mark up made it more popular that made it enviable to competition. Secret to his concept is high volume purchases, efficient logistics, and advanced supply chain technology, which significantly reduced cost and maximize economies of scale. From its first store in 1950s to supercenter in ’88, to great expansion in ’95, spread in 15 countries in ’05, and global reach for 50th anniversary in 2012. Under new leadership of CEO Mike Duke, the ambitious plan of expansion comes to play given the greatest challenges in legal, economic and political issues.
II. Statement of the Problem
While Walmart made a tremendous success in the retail stores, how can they support and carry out the plan of global expansion given the political and economic challenges.
III. Case Objective
To suggest tangible strategic plans towards the realization of the dream of having a global reach in 2012.
IV. Case Analysis
SWOT Analysis
External Factors Opportunities | Threats | * Global Expansion * Newly Opened Stores in US * Strong per capita income * Big money spending of consumers * Larger market reach thru online access | * Competition * Political issues and govt positions * Govt regulations * Market saturation * Economic reccesion | Strengths | Weakness | * Big/ large discount offers * International advantage * Interstate reach * Leverage on suppliers * Brand Loyalty and name recall * Wide variety of choices: house brands and signature brands * Extensive choices of goods | * No standard store layout * No big parking spaces to accommodate multitudes especially over the weekends * |
V. Altenative Courses of Action
Alternative no.1- To intensify store operations of existing