Through this model, investors have an opportunity to evaluate the market position of the company through is effective and strong performance. Strengths Globally recognized – Wal-Mart has been in the retail business since the year 1962, and most of its efforts are dedicated to ensuring that it provides quality products to their customer and this has made them be a global brand. As a result, the strong market position of the company is its main strength. Competence in technology – Wal-Mart has effectively and efficiently managed to integrate technology in most of its operations. Competence in information system has enabled the company to establish a successful supply chain and logistics thus, saving a significant amount of cost to manage its inventory levels, sales and other crucial information and data.
Also, its size allows the company to advantage from economic of scale, which in time conduce to a lower price of products for the final consumer. 220.127.116.11. Wide range of products The retailer sells a bigger variety of products than any of its retail competitors. Grocery, health and wellness, apparel, entertainment, electronics and so many other products are sold in its shelves. Also it is remarkable the fact that Wal-Mart sell both, brand products and own label products, that are even cheaper.
Walmart’s mission statement is Saving people money so they can live better. This statement is synonymous to the company’s slogan, Save money, Live better. The firm follows and succeeds in fulfilling the saving people money component of the mission statement. Consumers save money through Walmart’s low selling prices. However, it is not yet clear if the company satisfies the live better component of the mission statement.
• Domestic markets moving towards saturation • Domestic market (US) accounts for a small percentage of world’s population. • Walmart perception was discount retailing is essential for the developing economies and hence they achieve the double digit growth rates Advantages • Leverage local buying power with US based MNC’s. • Utilize competencies of efficient store management, technology & logistics. When Walmart expanded
The culture of the organization believes that the retailer can help people by saving money which will improve theory quality of life. The major four values of the company includes service to its customers, respect for every individual, achieving excellence and action which aims to maintain integrity. Wal-Mart is focusing on enhancing its business value
Walmart must remain aggressive and innovative to remain in the strong competitive aspect, as the leaders of the industry, because although Walmart have the leadership in the retailer business, have a strong competitor in the e-commerce segment: Amazon, and this is a threat for the company, now that the customers behavior has changed and that the company is focusing in the last years on this segment. Bargaining Power of Buyers
Segment 3 – The Strategy: Low Costs and Go Global 1. What are opening price points? Opening price points are the lowest prices that Wal-Mart showcases in special displays. The opening price points is a foundation of who Wal-Mart is and how they interact with their customers. It is the heart of Wal-Mart pricing strategy.
This has helped Walmart to become a dominant retailer in the global arena. With the rapid increase and evolving of technology Walmart continues to focus on innovative processes and systems to improve its supply chain and achieve greater efficiency. Conclusion The evolution of Walmart’s supply chain includes three elements, according to an Arkansas Business article: distribution practices, operating its own fleet of trucks and technology. Benefits from its supply chain efficiency result in time savings, more cost-effective inventory management and improved product forecasting. Walmart demonstrates the complementary use of lean and agile design principles hand in hand when designing a supply chain that is highly efficient while Walmart uses inventory optimization and transportation optimization processes to reduce the costs (lean), it also uses cross-docking to actively respond to the latest store demand (agile).
The mission statement of the Walmart is saving money so that people can live better. This statement is synonymous with the company motto, save money, live better. The company follows and manages to meet the people save money of the components of the mission statement. Consumers save money through low prices Walmart. However, it remains unclear if the company meets the live components of the mission statement.
It's a danger for WalMart to have bring down number of client later on if a lower quality is given. WalMart does not organize sound items in its retail locations. WalMart need is to utilize the qualities to abuse openings in the worldwide retail advertise. The organization's shortcomings and dangers are the optional needs. WalMart ought to be proceeding with extension to misuse financial open doors in the creating markets.