Wal-Mart

Abstract

The research discusses the strategies, which can provide a platform for growth to Wal-Mart. The research emphasizes on cost leadership and horizontal integration as the best strategies to grow. Furthermore, the research also identifies efficiencies in operations as a value discipline for the company.

Table of Contents

Abstractii

Introduction1

Discussion1

Value Discipline1

Generic Strategies3

Grand Strategy4

Strategies for value Networks6

Conclusion8

References9

Wal-Mart

Introduction

Wal-Mart Stores, Inc. is a U.S. multinational company specializing in retail, founded by Sam Walton and now headed by his eldest son, S. Robson Walton. Founded under that name in 1962, it has grown rapidly in Arkansas and led all U.S. begin to internationalize from 1991. In Europe, stores are present in Great Britain under the name Asda. Wal-Mart is now attacking the market Asia. Based in China since 1996, the group employed about thirty thousand workers in this country in 2006. It is also present in Japan under the name Seiyu. In 2005, 20 million customers attending the Wal-Mart on average each day. Wal-Mart is the largest general retailer in the United States with 3500 stores and 20% of estimated market share and the largest distributor of toys with a 45% estimated market share, having surpassed Toys "R" Us in the late 1990s.

Discussion

Value Discipline

To remain competitive and reduce its operating costs, Wal-Mart needs to reduce its number of employees and number of stores. Emphasis should be placed not only on the functional efficiency of the organization, but on the behavioral patterns of relationship with consumers. The structural features of sales must be better separated from administrative functions. At the behavioral level, certain functions should be merged to maximize the power sales (customer service, refund, credit, returned goods, etc.). Wal-Mart is also renovating its stores to make them more effective and more attractive. It is not enough to offer consumers an impersonal supermarket where the goods are packed in any way. Wal-Mart must treat the presentation, while reducing storage space and maximizing the sales area. Wal-Mart has long neglected the training of its human resources. Employees need more training to better sell. It would also be preferable to introduce a bonus scheme on sales to motivate employees' performance (Parnell & Lester, 2008).

Improved databases from Wal-Mart (by setting up the system SPRS), will allows it to cope with the problems of managing information and improve its efficiency a lot better than before. Although, the information database is centralized, access is decentralized, which means that all business functions, in addition to distributors and customers can access to view information about them. The consolidation of all sources of company data gives an informative power which enables it to coordinate its operations faster and do more with less.

Information on the status of stocks are driven by suppliers, so they can replenish stocks in time, making the transit times of the goods and lowers inventory costs by 45 million dollars per year. Suppliers can even access a billing system that facilitates online financial management and procurement (Fishman, 2004). The information in certain product categories and promotions are pushed on the website of the company so ...