WAL-MART STRATEGIC MANAGEMENT

Wal-Mart Strategic Management

Wal-Mart Strategic Management

Introduction

The first Wal-Mart was opened in 1962 as a result of Sam Walton's dream to give people high value, low prices and a warm welcome. Till today there are more than 1.2 million associates of Wal-Mart worldwide. It has more than 3,000 stores and offices across the U.S and more than 1,000 stores internationally. In 2000 Walmart.com came into being which has brought Sam Walton's dream of bringing Wal-Mart to the Internet. It is because of the great prices and appealing selection that customers return to Wal-Mart again and again. It is also because of the people at Wal-Mart who greet people with prompt friendly service. In this paper we analysed the Wal-Mart Strategic Management.

Wal-Mart Strategic Management

The nation's largest retailer has implemented an Internet EDI system that enables its smallest suppliers to work with automated ordering systems. Wal-Mart Stores Inc. last week deployed Harbinger Corp.'s TrustedLink Express to make EDI services available to companies unable or unwilling to bear the expense of a proprietary EDI connection.

"Wal-Mart is definitely furthering its worldwide strategy to connect partners all over the world," said Torrey Byles, president of Granada Research, who predicted the service would quickly be ported to Asian and European trading partners. "They're trying to do more local buying in Latin America and Asia, and I am sure this fits in there." Wal-Mart executives would not comment on the deployment, but Harbinger vice president Tom Lenahan confirmed that Wal-Mart in tends to build a global Internet EDI network. Harbinger's contract with Wal-Mart calls for it to develop interfaces in several foreign languages. The Wal-Mart application completely eliminates all value-added network charges, Lenahan said. Wal-Mart is trying to go direct, no VAN," Lenahan said. "This is pure, secure Internet connectivity."

Wal-Mart helped ensure a change in the character of downtown, he said. Laura Richardson who is a retail analyst with Pacific Crest Securities is all for a competitive change involving smaller retailers. It s a big store. It carries a broad selection. There s no depth, Richardson said. That s where the local shops can compete. They need to figure out what Wal-Mart doesn t do, be flexible and do it. The expansion of Wal-Mart throughout the U.S. is a positive change for towns, cities and the economy. It brings prosperity, healthy competition and it is part of the inevitable evolution that sweeps through the country on a daily basis. Wal-Mart should be greeted with open arms and with a positive outlook for the future. (Wilson, 1999, pp 121-190)

Wal-Mart Philosophy

Wal-Mart is successful not only because it makes sound Strategic management decisions, but also for its innovative implementation of those Strategic decisions. Regarded by many as the entrepreneur of the century, Walton had a reputation for caring about his customers, his employees (or 'associates' as he referred to them), and the community. In order to maintain its market position in the discount retail business, Wal-Mart executives continue to adhere to the management guidelines ...