Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Wal-mart - Essay Example

Comments (0) Cite this document
Its supply strategy in its home country was to build stores in remote locations where other stores were not available, thereby creating markets and adequate sales volumes to generate economies of scale from…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.8% of users find it useful
Read TextPreview

Extract of sample "Wal-mart"

Wal Mart Competitors’ home, supplier, and partner countries 2) and supplier bypass 3) Political, legal and regulatory climate Competitor Country features:
Walmart’s business models centers around the everyday low price model. Its supply strategy in its home country was to build stores in remote locations where other stores were not available, thereby creating markets and adequate sales volumes to generate economies of scale from them. It is a discount store outlet, focused on marketing brand names for lower prices. Similar stores such as Woolco and Kmart were not as successful as WalMart, because the latter had some unique operating principles which worked to its benefit. After four decades of operation, Woolco outlets have disappeared, while Kmart has moved into bankruptcy, so that WalMart is the top ranking store in the United States. China is WalMart’s largest supplier, but in terms of sales WalMart ranks 24th in China after the local stores, while French retail giant Carrefour ranks fourth.
The WalMart model of everyday low prices, coupled with supplier and cost controls has been successful in some countries such as Mexico, Canada and Britain. In Germany, the company has not done well due to existing competition, high labour costs and zoning laws. Altho0ugh China has the kind of market size comparable to domestic markets, thereby presenting an opportunity to duplicate domestic success, this has not occurred, as stated above. The Company has been losing money since its arrival in the country. Some of the other foreign retail chains operating in the country include UK’s Tesco, Thailand’s Lotus and Germany’s Metro. The local Chinese retail chain, Bailan, was most successful because of localised demand, supply base and distribution. Due to the wide disparities in income among Chinese customers, Walmart could not operate its national model, because purchasing patterns and good demanded were different at different locations and a standardised model was not successful. Local protectionism was also a barrier. The poor infrastructure in the country also added to the logistical and supply costs, thereby increasing costs.
Firstly, Walmart’s attracted customers by its Everyday Low Prices. It maintained a relentless cost control system by allowing few perks for its officers and employees. It was also able to negotiate tough deals with its suppliers, using its ability to place bulk orders to also make other demand such as high quality and low prices, which it then passed on to its customers. It ,maintained several distribution outlets and initiated an electronic data interchange system, allowing suppliers to track sales to deliver new stocks and they were also able to exchange invoices, purchase orders and other documents electronically.
The Chinese retail market was originally under Government control, but after its economic reform policy in 1978, high quality and good service began to replace existing conditions. The retail sector became increasingly competitive. One of the changes in China’s environment is that the country opened up its retail market to everyone, so that foreign retailers were not placed in the position of being forced to enter into distribution agreements or joint ventures with Chinese locals, as had been the case with the Government’s mandating of a 51% Chinese ownership of joint ventures. After 2005, the retail markets were opened up, but due to regulatory restrictions on a foreign retailer’s operations, Walmart was unable to achieve economies of scale. It stuck to rules, while its rival Carrefour bypassed Government regulations to occupy important markets. The lack of IT systems and differences in Chinese customer behaviour further hindered Walmart’s competitiveness.
*Farhoomand, Ali. “Walmart stores: Everyday low prices in China”, Asia Case research Centre. Read More
Cite this document
  • APA
  • MLA
(“Wal-mart Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Wal-mart Essay Example | Topics and Well Written Essays - 500 words. Retrieved from
(Wal-Mart Essay Example | Topics and Well Written Essays - 500 Words)
Wal-Mart Essay Example | Topics and Well Written Essays - 500 Words.
“Wal-Mart Essay Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document



... to work with the manager and specify the most relevant data needed. The information generated should help the manager in making better decisions and this difference should be measurable. The definition of MIS implies that it is not worth building an MIS system unless the managers are willing to use it. MIS has never been rightly used as a control system for better decisions. 3. Background – Wal-mart Wal-mart plays a significant role in the US economy. Founded by Sam Walton in 1962, it has grown from a single store to a mammoth international corporation. As of 2007 Wal-mart operated more than 3400 stores and is the largest employer in the United States (Basker, 2007). Its first store opened in 1988 as an experimental format. Wal-mart...
11 Pages(2750 words)Assignment


...are there and they also pull the crowd very efficiently but do they pull crowd like Wal-Mart? Well, from many personal experiences it can be stated that the world number one retailer indeed pull the crowd efficiently than any other stores. If a person goes to any Wal-Mart store in USA in any time, he or she will see a gathering of huge crowd looking to buy something or the other. The cash counters are always busy with long queues and happy customers are always coming out with their purchases. However, the question is how they are so successful and how they overcome the tough competition in the market. From the personal experiences and viewpoints it can stated that...
3 Pages(750 words)Essay


... on achieving a completely error-free, fool-proof transparent supply chain. To achieve this, Wal-mart planned to install RFID readers at the distribution centers and stores, and buying equipment for printing tags. The plan envisaged was so intense that suppliers could not escape using this technology. Wal-mart also wanted to gradually work on tracking recalls. The idea behind the entire plan was to gain competitive advantage over others in the sector. Within two months of the deadline indicated by Wal-mart, RFID system was installed at 104 Wal-mart stores. Within 30 minutes the suppliers could obtain the data through its Retail Link extranet website. By the end of February 2005, Wal-mart stores using RFID had received 23,753 tagged pallets...
3 Pages(750 words)Essay


... worldwide through the Wal-Mart Stores, Sam's Club franchises, and International. Wal-Mart offers everything starting from necessities such as food, clothing, health, beauty and household items, cleaning products, electronics and others. Wal-Mart currently operates almost 4,000 stores in the U.S., and more than 2,700 stores outside the United States. Wal-Mart's thrust has always been to offer the widest variety of items available at very low prices. Financial Health Wal-Mart trades under the stock symbol WMT at the New York Stock Exchange. As of 05-17-2007 04:32 PM CT, Wal-Mart stocks are priced at $47.11. (Morning Star) Wal-Mart's current P/E or Price Earnings ratio is at 17.1. Analysts at Forbes are expecting a slight dip in earnings...
4 Pages(1000 words)Case Study


..., which was not effective because it was expensive. Wal-Mart obtained time in the television to display their products and to feature them at the low prices that make them very reputable (Soderquist, 2005). This worked because the customers knew the whole range of products and their prices when going to shop in Wal-Mart. Target audience Wal-Mart is very popular amongst the low and middle-class income earners. Wal-Mart targets the blue collar and the middle class shoppers who are not used to frequenting the big malls (Soderquist, 2005). This is because of the low prices that they offer to this group of people. Wal-Mart has opened up many outlets including in areas that are normally ignored by other retailers. It is also estimated...
2 Pages(500 words)Research Paper


.... Finally, the Company spends its resources carefully with the aim of maximizing their margins while reducing costs. 2. How sustainable are those advantages? The company focuses on strategies such as everyday low prices that helped it stay ahead of its competitors. More so, the company’s retailer opened new small stores, which helped it overcome its competitors such as and dollar stores. It faced tough competition from these companies but it managed to make profits. 3. How transferable are those advantages as Wal-Mart moves into new formats and especially into new international locations? The company has been replacing its discount stores with supercentres. In this supercentres, Wal-Mart added grocery products and other new...
1 Pages(250 words)Article


... unions, workers, and organizations that are smaller in size, environmentalist and organizations. During the period of 2006, Wal-Mart was criticized by the Los Angeles Alliance for a New Economy as they believed that the company was paying 20% less to their employees as compared to the salaries paid by employers of other retail outlets (F. Cascio 1). During the period of 2001, the organization was criticized for paying $800/year less than the poverty line set at $14,630 by the federal government (Hansen 1). Before the death of Sam Walton, the company was operating a total of 1,714 and supercenters and Sam Clubs and the organization has employed 371,000 individuals and was earning a profit of 1.6 billion (Friedman 1). After his demise...
2 Pages(500 words)Essay


...and just take a break” (Luckerson, 2012). The premise of Wal-Mart’s management that women are not interested in managerial positions is completely false. Women have the same goals and desires as men of moving up the corporate ladder. Unfortunately at Wal-Mart its corporate culture suffers from the glass ceiling effect. “The popular notion of glass ceiling effects implies that gender disadvantages are stronger at the top of the hierarchy than at lower levels and that these disadvantages become worse later in a persons career” (Cotter, Hermsen, Ovadia, Vanneman, 2001). Women at Wal-Mart are viewed as second class citizens that do not...
2 Pages(500 words)Case Study

Wal mart

... Walmart Financial Analysis Social Responsibility. There are two perspectives as to whom organizations are socially responsible: the shareholder model and the stakeholder model. a. Which model to do you think applies to Walmart? Explain why. I think Walmart uses both models because it has a diversified range of stores across the globe that are under a team of managers, and utilizes all opportunities in the market. b According to the model you subscribed to Walmart under 4a, who do you think gains the most from Wal-Marts business model? Again, explain why. Opening of new stores, adoption of new technological measures, using a combination of technologies to enhance performance, increasing product volume and store manager incentive...
1 Pages(250 words)Assignment


...Wal-Mart Wal-Mart Walmart’s continued expansion have received heightened criticism and opposition at local level due to various economic and consumption concerns. Most local citizens heavily complains that expansion of Walmart stores have resulted into monopoly of retail business. Subsequently, the company have dominated competitors and continues to retail goods at abnormal prices. Besides the high prices, Walmart seemingly compromises quality of services and goods retailed due to surety for dominance (Shaw & Barry, 2015). Due to the aforementioned discussion, Walmart expansion faces legitimate political opposition. Such political opposition emanates mostly from community members who raises economic concerns related to the largest retail...
1 Pages(250 words)Essay

Supply Chain Management Techniques at Wal-Mart Stores

... years. Wal-Mart is known for its tough bargaining strategies among the supplier while on the same time providing best prices options to its customers. It has posed tough competition for its competitors for each of its functions starting from procurement to the delivery of products. One of the reasons behind Wal-Mart’s huge success is its effective supply chain management strategy. From the procurement to distribution of products Wal-Mart ensures that the cost is managed and the distribution is on time. It has adopted new technologies to meet its supply chain management requirements. It has worked on human resource to prepare them for achieving the organizational goals. The first section of the paper briefly outlines the company background...
7 Pages(1750 words)Case Study

Strategic Management of Wal-Mart

Wal-Mart has adopted various strategies like low procurement cost, low level of inventory, effective inventory management techniques and use of the latest technologies to improve its operations and contact points with customers. It has its own freight system and trucks which supports its aim to ensure the availability of products at the stores.

Wal-Mart is the largest retailer in the world with consistent ranking in fortune 500 lists on top 5 from last many years. Wal-Mart has a low price high volume business model. Apart from these Wal-Mart has been adopting various strategies to keep its strong competitive position in the market. Wal-Mart is known for its tough bargaining strategies among the supplier while at the sam...
10 Pages(2500 words)Case Study

Retail Marketing Plan: Wal-Mart

Wal-Mart boasts of its low-price strategy to capture a steady volume of patrons in each of its outlets. No doubt, Wal-Mart may be considered the most famous retail store in their areas of operation. This is because they have managed to cater to every need of their market, with their wide range of product offers at the lowest possible prices. Customers patronize Wal-Mart stores due to the huge savings that these stores offer. Consequently, this Retail Marketing Plan shall capitalize on this value proposition to ensure that Wal-Mart continues to capture the target market and maintain its place as the preferred retail store in the US and UK

As always, Wal-Mart ensures that it gets the prime spot in every location it intend...
8 Pages(2000 words)Case Study

Improper Organizational and Managerial Policies at Wal-Mart

..., the firm appears to remain unable to create a positive internal culture. Within the modern organization, building optimistic policies to boost staff motivation is a primary element to increased profitability and positive public image. Despite this fact, Wal-Mart requires a new approach to motivation, managing organizational change, and the development of a strong organizational culture in which employees can thrive and be satisfied. Motivational Activities The contemporary definition of motivation is described as a series of environmental and organizational conditions responsible for intense, persistent focus on quality designed to promote desirable employee behavior (Landy & Conte, 2006). Wal-Mart continuously touts its progressive...
7 Pages(1750 words)Case Study

Foundations of Business Computing: Project Income Statement of Maxs Grocery Mart

...Max’s Grocery Mart- Projected Income ment (Enter (Enter Number) (Enter (Enter Faculty Declaration: I, ……………( Student Name), certify that this assignment is my own work, based on my personal study and / or research, and that I have acknowledged all material and sources used in the preparation of this assignment whether they be books, articles, reports, lecture notes, and any other kind of document, electronic or personal communication. I also certify that the assignment has not previously been submitted for assessment in any other course or at any other time in this course, unless by negotiation, and that I have not copied in part or whole or otherwise plagiarized the work of other students and / or persons. I have read the CQU policy...
8 Pages(2000 words)Assignment

Wal-Mart and Unionization

First of all, I will discuss how big Wal-Mart’s business is and how it dominates the US’s and global economy. The Wal-Marts massive and great size, makes it wields barely credible power and economic king. It has driven lesser retailers out of commerce; forced companies to be well-organized, commonly leading these suppliers to move industrial jobs overseas and changed the method that yet large and established productions do business. Wal-Mart has existence or death decisions over all the customer supplies industries that survive in the US, for the basis that it is the number-one supplier-retailer of the majority of customer goods, not still toys, clothes, shoes but home applications, electronic goods, sporting products,...
7 Pages(1750 words)Case Study

Organisational Structure of Wal-Mart, Core Business Values

...system at home and the system at work often causes imbalances leading to tussles between family members. It is also necessary to point out here that additional problems may arise owing to the interests of family members that do not align with the larger interest of the business, which gives rise to friction and may even lead to the division or dissolution of the business (Marshall B. Paisner, 2000). Given the above introductory aspects of a family business, the discussion of a family business will be undertaken through a case study, which will analyze it from several perspectives. For the purpose of the current research, the Wal-Mart group shall be studied on the lines of the family business. The reasons for considering the group are...
6 Pages(1500 words)Case Study

Organization of Marketing for the Wal Mart Chain

...separable from the goods themselves. A theory has developed which represents this fusion of the intangible with what is tangible in the business of trade that can be termed under the service dominant logic theorem. Lusch and Vargo (2007) proposed this theory as a way to frame the marketing of goods so that the consumer experience is incorporated into the sale of a product so that the two ideas have become one entity. This literature review will attempt to expand upon the ideas of Lusch and Vargo (2007) by exploring the varying concepts that other scholars present as well as developing a case study of Wal-Mart as an example of how this concept is put into practice by a retail outlet. Service Dominant Logic According to Lusch and...
10 Pages(2500 words)Literature review

Business Ethics of Wal Mart Company

The lack of ethics is one that results in complications such as loss of customer loyalty, inability to continue to progress in society and legalities that can cause the business to become hindered when selling products or services.

A company that is taking shape in the global market is Wal – Mart a superstore that is known for low prices on a variety of products. Consumers that are familiar with Wal – Mart often attribute the products offered by this corporation as convenient, easy to use and at lower prices than other stores. However, there are also continuous questions of how the employees, suppliers, and customers are treated when looking at ethical considerations. One of the common problems that many ha...
6 Pages(1500 words)Case Study

Organizational Behavior Analysis: Wal-Mart

... giant like Wal-Mart itself plus other issues related to the market ("Wal-mart: organizational behavior," ). Organizational Overview: Sam Walton founded Wal-Mart in the year 1962 in the form of a single store in semi-rural Arkansas ("History," ). The business voyage started with three openings; Sam’s club in 1984, then first supercenter and a neighborhood market in 1999. So principally, the company was divided into three basic segments; Sam’s club, Wal-Mart stores, and global openings of the organization, where Wal-Mart was considered as the complete discount store, and superstores and the international organization incorporated all the stores outside the United States. The global segment comprises of operations outside the United States...
6 Pages(1500 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Wal-mart for FREE!

Contact Us