Walmart Case Study 2k2f2l

Wal-Mart Stores Inc. Management‘s Initiatives to Transform the Company and Curtail Wal-Mart Bashing

Caroline Steinhagen FACT - Strategisches Controlling

Anne Zänker

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Agenda I.

Introduction

Video-Clip

II.

Critics about Wal-Mart

III.

History of the Company

IV.

Wal-Mart‘s Strategy

V.

SWOT-Analysis

VI.

Conclusion

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II. Critics about WalWal-Mart

low wages



move the production to China



employment of illegal immigrants



discrimination against women



political influence



non-unionized politics



„Wal-Mart Effect“

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III. History of the Company 1962 – opening of the first stores in Arkansas 1990 – largest retailer in the United States 1991 – international market entry 1999 – largest private employer in the US (1,14 million associates) 2000 – Lee Scott is third CEO 2006 – transformation process

Sam Walton

2008: • sales: $ 365 billion / profit: $12.7 billion • over 7000 stores with 2,1 Mio workers world wide • 4 different store concepts 4

IV. WalWal-Mart‘ Mart‘s Strategy Five Generic Strategies (M.E. Porter)

A Broad Cross-Section of Buyers

Overall Low-Cost Provider Strategy

Best-Cost Provider Strategy

Market Target

A Norrow Buyer Segment (or Market Niche)

Broad Differentiation Strategy

Focused Low-Cost Strategy

Focused Differentiation Strategy

Lower Cost

Differentation

Type of Competive Advantage Being Pursued 5

IV. Wal-Mart‘s Strategy → overall low cost provider company culture leadership internal processes -supply chain -distribution -technology

expansion

national international sales system/ customers

purchase organisation/ suppliers

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IV. WalWal-Mart‘ Mart‘s Strategy transformation process environment

customers

employees

•„zero waste“ campaign

• new store appearance

• higher salaries

• biodegradable

• offer extended

• health insurance

• faster check-out over

• bonus payments

packaging • efficiency of the fleet • reduce energy consumption in stores

the counter • store of the community

• paid vacation • maternity leave • 10% employee discount

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V. SWOT – Analysis POSITIVE

INTERNAL FACTORS

STRENGTH

WEAKNESSES



cost guide technological developments supply chain range/ collection brand



OPPORTUNITIES

THREATS

choice of location demand for discounters

EXTERNAL FACTORS

NEGATIVE

wages, social benefits image no trainings for associates focus of cost savings

competitors (Target, Kmart) relations to suppliers public critics impact of lobbying unions

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V. SWOT – Analysis valuation of customers (United States)

source: Zenith Management Consulting (2005) 9

VI. Conclusion

Wal-Mart divides the minds in the society



consistent tracking of corporate philosophy



influential, strongly in highly competitive, profitable



future perspective?!

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