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Wal-Mart: E-tailing in a World of Super Stores
Who are Wal Mart's major external stakeholders?
EMPLOYEES: 1,500,000 domestic employees plus an incrasing workforce in
overseas Wal-marts specially in Mexico and Canada.
SHAREHOLDERS
CUSTOMERS:Wal-mart is the top retail store in the US and Mexico
SUPPLIERS: Wal-mart extensive line of products involves multiple
suppliers. Wal-mart is always expanding their lines of products or changing
to bargain brands so their suppliers are increasing and changing with
time.
COMMUNITIES:$150 million was given to support communities and local
non-profit organizations. Customers raised an additional $75 million with
the help of Wal-mart stores. Children's Miracle Network and United Way
are two examples of organizations that get money fron Wal-mart.
Walmart also offers scholarships, environmental grants and community grants.
CREDITORS
Do a SWOT analysis of Wal Mart. What are the company' a distinctive competencies?
STRENGHTS:
Wal-mart is known as having low prices.
They do not have to pay high salaries like grocery stores
Good market share
Strong online retail store
Customers like the return policy
Technology to track supplies
WEAKNESSES:
Some communities oppose the expansion of their stores because the fear
of ruining the local economy and bussinesses.
OPPORTUNITIES:
Expansion to other lines of products(groceries)
Overseas stores
Replace failing retail stores
Weak economy causes the customer to look for low prices
THREATS:
Local regulations that do not allow Wal-mart to expand.
DISTINCTIVE COMPETENCIES:
One stop shopping.
Low prices.
Tracking technology.
Low wages.
How would you describe Wal Mart's "Grand" strategy for the next decade? In terms of Porter' a generic strategies? In Miles and Snow' a adaptive model?
Using Porter's bussiness stragies Wal-mart has a Cost leadership.
Walmart is going to keep trying to keep low prices by having a good
purchasing stragegy, low wages and innovative supply tracking technology.
Walmart started as a Focused cost leadership but is changing to Cost
leadership because is now expanding to other locations and line of products.
According to Miles and Snow stragegy formulation, Wal-mart has adapted
to the external environment by creating different types of retail
stores (supercenters, discounted stores) and has also expand their line of
products. It has also been able to succesfully adapt their strategy to
international markets.
Would you consider Wal Mart to be an entrepreneurial organization? Why or why not?
Wal-mart is an entreprenuurial organization because they were able to
develop a competitive advantage. They were also successful in
implementing their sales strategy to other countries. They have become the
number one retail store in Mexico. They also have been sucessful in
expanding their line of products. They have achieve high business rankings
and they are able to keep growing even in a weak economy.
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