Walmart Business Strategy

 Why has Loblaw’s strategy been successful? Loblaw success can be attributed to its efficient operations, its customer loyalty programs, the popularity of its private label brands, and large-scale purchasing efficiencies. Loblaw has showed a good understanding of the Canadian grocery market due to its time-tested strategy. The company has presence in virtually all Canadian provinces with a tailored value chain that helps them achieve high revenue and standards. Additionally Loblaw offers competitive wages and benefits.

Rivalry among competitors: High: Grocery chains have been growing at a steady rate in the past few years and so has been the competition. Loblaw faces competition from 4 leading chains: Sobey’s(14.7%), Metro(7%), A&P(5.9%) and Canada Safeway(7.4%). In addition to the local retailers, Loblaw’s also faces competition from global retail chains such as Walmart, Costco etc. Internal Analysis: SWOT: Strengths: 1.Largest food retailer in Canada. 2.

Since the company was founded as a corner store, the company’s business plan has always emphasized on expect more, pay less brand promise that sets it apart from its chief rival, Walmart. Although, Walmart is known for its low prices and offers a large selection to its customers; it’s customer service is often found to be nonexistent. This

Wal-Mart has been experimenting in smaller places rather than usual big cities. Wal-Mart proclaimed that they are planning to open %40 of their store openings over next years with small store formats. The SWOT analysis indicates us relevant information about the current threats of Trader Joe’s. The threat analysis indicates that there is huge rivalry in the market, having no technology and substitute companies creates big threat. The substitute threat and brand name items are concern for Trader Joe’s and competitive advantage.

Walmart was founded in the summer of 1962 by Kingfisher, Oklahoma native Sam Walton. Although Walton’s original vision for the store was relatively modest, the half century since its founding has seen Walmart morph into one of the biggest companies in the world. Today headed by one Doug McMillon, Walmart boasts more than 5000 stores in the United States of America alone and employs more than 1.5 million people. Walmart is undoubtedly an American institution, yet each Walmart store feels like its own little country. Walmart seems to have its own laws and customs and the people who shop their on a regular basis appear almost primitive in their behavior as they go about raiding the store’s shelves and wrestling with fellow customers for discount flat screen televisions and bulk packages of two-ply toilet paper.

During the past decade, Wal-Mart, Kmart and Target three retail giants generate a combined sale of $123 billion (External Analysis Wal-Mart 2015). The success of the retail industry contributes largely to the advancements of science and technology and reduced costs. In the future, the success of Wal-Mart still relies on consumers’ concerns for value shopping and saving money. The company should pay close attention to the needs of customers and provide high-value and low-price products for consumers. Industry environment analysis includes five aspects: threat of new entrants, power of suppliers, inter-firm rivalry, power of buyers and threat of substitutes.

YISHENG ZHANG MACROECONOMICS - WRITING ESSAY FEBRUARY 27, 2017 Walmart, as one of the world’s largest company it’s corporation contains grocery shopping, pharmacy, electronic sales, an outside garden etc. It is very convenient for people all around the world and low income families who are unable to afford other expensive goods made in the United States. Since Walmart is considered a world wide’s supermarket, it has investments outside of the United States such as in China, United Kingdom, and south America. When the prices are less, people are able to afford these products and throughout the century, it’s easy to tell that Walmart has made a huge impact in the United States economy.

Furthermore, this paper will discuss some proposed solutions to the current ethical issues facing Walmart that could assist Walmart in its objective of continued growth in an ethical and sustainable manner. One of the major ways in which Walmart was able to grow and out compete its rivals was through its ability to provide retail goods to consumers at prices lower than competitors (Ferrell 407). Walmart ability to keep prices low is based on its ability to secure cheaply made goods from foreign manufacturers while also keeping the wages for its workforce low. The combination of cheaply made goods and a low paid retail staff means that Walmart can pass the savings to consumers which made it a popular retail shopping spot for lower to middle income Americans

The company "Walmart" is one of the most influential companies in the retail trade. For over 10 years it became the largest chain of retail supermarkets in the United States. In addition, the position of Wal-Mart are strong and in other countries. "Walmart", since its foundation, pursues a strategy of low prices. This is the strategy through which it can offer products cheaper than other competitors.

In this era of globalization, the supermarket industry is one of the common investment sectors. It is also forming retail common categories of food products such as fresh and meats, poultry and seafood, fresh fruits and vegetables, canned and frozen foods as well as various dairy products. Investment in this industry can be profitable if succeed but bear in mind that risk still exists if monitoring process is not carried out. Therefore, Professor Michael E. Porter from Harvard Business School has introduced a tool for purposes of analysis potential industry which is the most profitable and potential. Porter stated that five forces are deciding an industry either beneficial at future or it will become a case study and commerce practice (Porter, M.E., 2008).

CASE STUDY 2 INTRODUCTION Julia Juice, one of the world’s largest juice retailers who owns 1200+ stores in whole UK and USA. As it grows by year 2005 the growth becomes three times. Porter’s 5 Forces Porter 's competitive analysis will help us to understand the competitiveness of JJ business environment, and identify their strategy 's potential profitability.

Although, Morrisons have arrived lately to non-food retail compared to its competitors, however the retailer managed to effectively incorporate new products in short period of time by means of acquisitions of meat and seafood processing facilities, Flower World, Kiddicare, and others. One feature differentiating Morrisons from Asda, Sainsbury’s, and Tesco, is developed vertically integrated supply chain. The advantage of this model is that it gives greater control upon quality of fresh food products by closely collaborating with farmers. Morrisons’ owning of fresh food producing facilities improves its delivery time, and helps to avoid extra costs related to supply chain.

Amazon is number one in competing Walmart especially in online retailer and now opining fiscal stores starting with Amazon Campus store in 2015, available at several college campuses in US the Amazon Campus stores serve as a central hub where student retrieve deliveries from lockers and drop off returns, all free of charge. Over the past three years, while Walmart’s sales grew by 8.6 %, revenue at Amazon has nearly doubled. Then, Costco is also major competitor to Walmart, particularly to Sam’s because of its low price.

I. Introduction Walmart Stores, Inc. - the American corporation which was established in 1962, is well-know for the globe’s largest multinational retailer (Walmart 2016). Walmart owns a chain of grocery stores, discount department stores and hypermarkets with about 11,500 retail stores over 28 countries. In 1998, Walmart entered Germany with the acquisition of Wertkauf and Interspar chain (Louisa 2006). Despite having the strongest economy in Europe and the third largest retail market in the world, Germany was not an ideal place for Walmart to achieve its ambition (Knorr and Andt 2003). After nearly a decade struggling to grow, Walmart decided to pull out of German market in 2006 with the loss of one billion dollars (Mark 2006).

In order to analyse what extent Tesco U.K’s performance is attributa-ble towards industry characteristics, Porter’s five forces are broken up into competition, potential of new entrants, power of suppliers, power of customers and the threat of sub-stitute products. Below is an image of Porters 5-forces in relation to the U.K supermarket industry. 1. Rivalry amongst competitors The intensive rivalry in the U.K’s grocery sector is remarkably high.