Wal Mart case study analysis :: essays research papers

Central bonkThe main issue facing the management of Wal Mart was how to sustain their phenomenal growth. As the domestic market reaches saturation, a strategy for at stead and for global expansion will be necessary.RecommendationWal-Mart needs to place and nurture the primary core aptitude that fueled their growth fulfilling client needs with a wide spectrum of products at everyday low prices. This competency is the product of the aggregate of competencies across individual skill sets and organization boundaries Wal-Mart is a leader in channel management, inventory control, distri onlyion and customer service. This is a result of the companys ability to coordinate a manifold information management and distributing network and to high-octanely manage supplier relations, through with(predicate) the use of new technologies and the seamless flow of information. Wal-Marts extensive communication theory network connects all stores, warehouses, offices and suppliers. This enables Wal-Mart to not only provide value to its customers by offering a wide variety of goods at the lowest prices, but as well to provide value to its suppliers as a large, ever perplex channel for sale of goods. This channel also provides a highly efficient feedback loop on unit sales, demand and inventory, facilitating a just in time preparation management system and an effective needs-based position. Through conscientious bargaining and sheer-size, Wal-Mart has power over the suppliers, and mint purchase goods cheaper than the competition. Wal-Mart can also differentiates through private branding, i.e. Sams Choice. In addition to the added differentiation, they can become less dependent on branded manufacturers, further wearing away the power that suppliers may wield. This also allows them to exploit their initial strategy of commencement stores in rural areas that were traditionally neglected, by maintaining a steady supply of low priced goods with low inventory costs. This ra ises the barriers to entry. By offering such a broad spectrum of products at the lowest prices, Wal-Mart reduces the threat of bargaining power of buyers.Wal-Mart was a leader in Uniform Product Codes scanning. For the two years that it took K-Mart to work through their system, Wal-Mart had, at least temporarily, a competitive advantage that was both rich and rare.Another characteristic that is valuable and difficult to imitate a stanch and motivated workforce. It requires time to develop a company culture of commitment and commitment to hard work. Providing value to the customer through low prices and small customer service, the threats of substitution are reduced. Customers wont switch to rival chains.