Wal-Mart stores conform to the latest trend that society has set for the current week, month, or year. Wal-Mart business is to please the majority, and the majority being the typical everyday working middle to low-income families. They offer the same selections at each and every store no matter where the location is. They order their products in large quantities and then attempt to sell those products at a “discount” price.
Analyze the business-level strategies for the corporation you chose to determine the business- level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Cost leadership strategy would be the most significant long-term success strategy for Wal-Mart. Basically it is very important for Wal-Mart to sell those products that are in demand by consumers and at a better price than their competitors. An example on how Wal-Mart is keeping up with the economy making their store a place where consumers want to spend money is by making their stores into Super Wal-Mart.
The Super Wal-Mart’s are all stores that now carry food products making it convenient for consumers to shop for all they need at good low prices getting the most value for their money. Wal-Mart’ s consumers are mostly middle class that offers them wide-range of products at good value for their money. Wal-Mart has a wide-range of products from inexpensive to more expensive. They have competitive prices and a wide-range of products they can supply the demands of the consumers at a good price. Being Wal-Mart sells a wide-range of products all over the world, they must obey the laws of the countries they sell their products in.
Not only does Wal-Mart need to follow the rules of the other countries but also that of the US. With all the competition Wal-Mart always stays ahead of it by offering the best products and at low prices. They always are having price cuts to keep their targeted market coming back. Wal-Mart also is able to get new consumers with their low prices and they also do price matching.
Their main goal is to be a family friendly store with good quality products at a low price giving consumers the most value for their money. I think that companies like Wal-Mart should try to get the best prices on products they can so that their consumers received the savings. By giving consumers lower prices it will help them in this economy where everything has sky
rocketed in cost of food, clothes and especially gas. Everyone will appreciate getting products at the lowest price available. Wal-Mart does this. Analyze the corporate-level strategies for the corporation you chose to determine the corporate- level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. Increasing the firm’s value would be the most successful for Wal-Mart in the long run. Wal-Mart was a leader in the use of technology to maximize operational efficiency.
Very early on, the company realized the value of proactive investments in technology and deployed a private satellite network. Wal-Mart also managed much of its own logistics through a central hub-and-spoke system of warehouses and distribution centers. It was estimated that the corporate logistics handled over million loads each year.
The general weakness in the world economy and the uncertain environment that prevailed, Wal-Mart had reported sales growth of 11%, amounting to $6.4 billion. The company’s associates were indeed doing the Wal-Mart cheer in faraway places like Germany, South Korea, China and United Kingdom. In three decades, it had grown from its rural Arkansas roots to become the world’s largest company, and quite possibly the most powerful retailer.
Analyze the competitive environment to determine the corporation’s most significant competitor. Compare their strategies at each level and evaluate which company you think is most likely to be successful in the long term. Justify your choice. Wal-Mart stores were geared toward the low-income customer segment; headquarters were reflective of the company’s tendency to be tightfisted as they were housed in warehouse style buildings with minimalist decor.
Frugality was a central tenet at the company, and every associate was expected to fully adopt this value in all its manifestations. It was also said that the company is homogenizing the marketplace by letting smaller towns dictate popular culture. Wal-Mart worked globally under the philosophy: Different store for different folks. As it grows around the world, it is important to its success that it exchanges best practices among all the countries where it operates.
Wal-Mart launched its globalization efforts with an initial foray into Mexico, then to Brazil, as well as Argentina. It then penetrated Europe with its stores in Germany and in the United Kingdom. Its Asian strategy composed of China, Korea and Japan. With the economy, the spending has cut down. Consumers arestill spending but not as much as they use to. Wal-Mart still has several consumers that choose to come to them instead of going elsewhere.
Wal-Mart guarantees a price match to what their competitors are charging. They will match the price of any product. Determine whether your choice from Question 3 would differ in slow-cycle and fast-cycle markets. Wal-Mart can vary depending on the situation and the time of the year. Values of hard work, customer satisfaction, and associate appreciation permeated the Wal-Mart environment.
Meaning: the short term activities of the organization but that can, and often do, influence long term decisions. The steps Wal-Mart local business can take to influence each of these will bring new capacity and competition for customers and resources. Meaning, it could be a threat to existing businesses in the industry.
The threat of entry depends on presence of entry barriers. And the entry barriers make it difficult for another business to enter the industry. Wal-Mart suppliers can exert power by threatening to raise prices or reduce the quality of purchased goods. That will not happen for Wal-Mart and their customers because Wal-Mart hand picks its suppliers and has a good and long standing relationship in order to maintain their pricing philosophies.
In fact “Wal-Mart buys from more than 68,000 U.S. suppliers.” Wal-Mart customers do not have to bargain with Wal-Mart for low prices, higher quality or more services because Wal-Mart has already established these issues in its business philosophy. Wal-Mart has many pricing philosophies including “Every Day Low Price”, “Rollback”, and “Special Buy” to ensure that its customers get the lowest price possible.Referencehttp://www.businessinsider.com/why-walmart-can-pull-off-everyday-low-prices-while-everyone-else-keeps-failing-2012-9 http://grist.org/series/2011-11-07-walmart-greenwash-retail-giant-still-unsustainable/ http://ronntorossian.com/tag/walmart-pr