Walmart Stores, Inc
WAL-MART STORES INC
1. Conduct a SWOT analysis
STRENGTHS
• Powerful retail brand
• Has a reputation for ‘value for money’
• Strong customer service
• Very convenience
• Offers a wide range of products
• Has grown rapidly and has expanded globally
• The use of latest supply chain technology RFID which increases the monitor and management of inventory
• Very efficient distribution strategy (lower distribution cost)
WEAKNESSES
• Due to selling different products across various divisions such as clothing, food and stationary, they may lack the flexibility the other competitors have
• Further expansion into other countries.
OPPORTUNITIES
• Merge with other global retailers like, India or other countries in Europe
• Development of the market and new locations
• Its current approach of large ‘supercentres’ is open for more opportunities
THREATS
• Because Wal-Mart is very successful (being on the top of the game) it’s the target of competition, locally and globally
• Because Wal-Mart is a global retailer, it is exposed to political problems in the country that it operates
• Lower manufacturing costs lead to strong price competition
2. What is Wal-Mart’s strategy?
Answer:
Purchasing - have more suppliers, limited their purchase, not reliant to one vendor, better inventory management.
Logistics – have the biggest trucking network (distribution centre). Stock would get to the store within a day. They took over the control of the deliver, they purchased a fleet of truck. This allows them to deliver smoothly and at their own feet. Competitors rely on trucking company, however Wal-Mart bought a truck fleet. Also more floor space would be available for selling. Satellite network enable them to communicate (internal network system).
MICS (Management Information and Control System) – using satellite network system they are able to collect data.
Store location – started off in a rural town, not
1. Conduct a SWOT analysis
STRENGTHS
• Powerful retail brand
• Has a reputation for ‘value for money’
• Strong customer service
• Very convenience
• Offers a wide range of products
• Has grown rapidly and has expanded globally
• The use of latest supply chain technology RFID which increases the monitor and management of inventory
• Very efficient distribution strategy (lower distribution cost)
WEAKNESSES
• Due to selling different products across various divisions such as clothing, food and stationary, they may lack the flexibility the other competitors have
• Further expansion into other countries.
OPPORTUNITIES
• Merge with other global retailers like, India or other countries in Europe
• Development of the market and new locations
• Its current approach of large ‘supercentres’ is open for more opportunities
THREATS
• Because Wal-Mart is very successful (being on the top of the game) it’s the target of competition, locally and globally
• Because Wal-Mart is a global retailer, it is exposed to political problems in the country that it operates
• Lower manufacturing costs lead to strong price competition
2. What is Wal-Mart’s strategy?
Answer:
Purchasing - have more suppliers, limited their purchase, not reliant to one vendor, better inventory management.
Logistics – have the biggest trucking network (distribution centre). Stock would get to the store within a day. They took over the control of the deliver, they purchased a fleet of truck. This allows them to deliver smoothly and at their own feet. Competitors rely on trucking company, however Wal-Mart bought a truck fleet. Also more floor space would be available for selling. Satellite network enable them to communicate (internal network system).
MICS (Management Information and Control System) – using satellite network system they are able to collect data.
Store location – started off in a rural town, not