WALMART CASE STUDY

BY M.Khalil Ullah

SUBMITTED TO
SIR ADNAN KEHR
CMS- 121-17-0017
 Executive Summary
Walmart Case Study

Wal-Mart is America's biggest retail outlet, which is larger than any other retail store chain in the
world. Wal-Mart currently runs over 4150 retail outlets globally. The company is still the
leading department store in Canada, Mexico and the United State. Wal-Mart supplies general
goods: household apparel, health & beauty aids, electronics, household consumables, toys,
fabric, craft, lawn & garden, jewelry and shoes. The company also runs a pharmacy, Tyre &
Lube Express and Photo data hub also.
The corporate management strategy for Wal-Mart involves the sale of high quality and branding
lowest price naming products to keep prices low, the company cuts costs through the use of
advanced electronic technology and warehouse. It also negotiates product deals directly from
manufacturers, removing the mediator.
Major Issues with Walmart were the expansion in the foreign markets, increasing competition
between rivals in block and cement, and online tender, widen obstacles from networks in the
neighbourhood and the rising cost of the materials.
The strategic goals of Walmart were to dominate the retail markets where the Walmart has a
presence, growth in US and international market development, create wide recognition of the
name and customer satisfaction with the walmart, and align the store with the name of the
best prices and also focus on expanding into other business markets such as hospitals, car
industry repairing, and selling fruit.
Since Walmart's image is really engaging with consumers ' minds and they are just situated as a
low price seller, they will go for the hoisting of their private label brands their deals and their
acknowledgement, since it would influence Walmart a lot its competitors and the brands it
keeps in its own stores.
The correct response is that Walmart just wants to publicize more of their offer in an adaptable
and more popular shelf area and sell incredible brand limits within. That would give the
clients visiting Walmart high utility on a shelf. Wal-Mart 's vigorous business approach is the
first area that needs to be discussed.
There's nothing wrong with being aggressive on the marketplace, certainly Walmart has gone
about it in such a manner that he seems cruel. Countless, anti grass roots Walmart groups
have established themselves to keep the retail giant out of their communities. The Pubic
belief is that Wal-Mart will blot out community. To combat that negative image, when
constructing new buildings, Wal-Mart has to stop attempting to bypass rules. It needs to
exactly demonstrate how you would be a good neighbor.
Secondly, Wal-Mart needs to loosen its strategy of anti unionization and to encourage its workers
to Opt to organize yourself freely in a union.
Finally, Wal-Mart have to make better use of its political resources and benefit from the past
when attempting to expand overseas. The shops have to be able to move their uniformity, and
consider the local culture's reaction. As they have started adopting the that stance in their
interactions with Japan and the cope with Japanese retailer Seiyu.
Wal-Mart will need to spend more money and more time enforcing those strategic ideas are listed
above. Poor pressing in the end is clearly not successful and with regard to labor relations it
cannot get much worse than it has.

1. vision statement
 “To be the best retailer in the hearts and minds of consumers and employees.”
2. Mission statement
“to save people money so they can live better.”

Pastel Analysis and any identify key factors.

Pestle Define Identify/ Reasons Actions/ Strategies
Political & Refers to 1-Issues related to
legal factors that fire labour and
affects labour force
company’s started to protest
environment & 2-Trading policy
markets. Like; in India was
Antitrust laws, pretty tough for
Pricing Walmart to
regulations, operate instead of
Taxation laws, very high market.
Trading 3- Corruption
policies, and probes
Labour laws, & regarding
Discrimination corruption & land
law. issues.
4- labour
laws and their
violations
Economical Refers to 1-Global Study consumer
factors that recession affected behavior and
affect its sales understand consumer
economy, 2-Declining its segment
Like; market in japan &
Exchange Germany
rates, Inflation 3-postitive
 rates, growth & new
Interest rates, expansion in store
Labor costs, formats
Economic increased
growth rate, revenues.
Unemploymen
t rate, Tax
rates,
& 4- Positive
Consumption economic growth
patterns. in future.
Technologica Refers to Technology is  Build stronger
l variables that mainly platform & strong
used for concerned with market advertising in
assessing online order to compete with
available infrastructure. Amazon and Alibaba.
changes with Emerging trends Winning customers
respect to of online selling loyalty with online
technological and internet ordering and creating
capabilities. availability is and also strong
Like; Internet, creating threats
 positioning.
Artificial and
Intelligence, opportunities.
product .
innovation,
etc.

3. Porter’s Five Forces Model.

Five Forces Define Identify/ Reasons Level Actions Strategies
Are
Threat of Products As wall Mart offer almost Low
substitute which can each and every products
products replace our and its substitutes at low
product prices.
Threat of Low - They have the Medium
new Easy to economies of scale -
entrants create an - High investment is High
online required.
retail store - Threats of new
but entrant are at the
difficult to medium level if
reach at any firm/company
Amazon’s come with
level
innovation then it
Well
would create
establishe
d problem for the
and have wall mart.
first mover
advantage
which will
keep the
entrants
away
however
the low
entrance
cost may
encourage
them.
Bargaining Diversified As they purchase in the Low to
power of products bulk quality form its moderat
suppliers will lead to suppliers e
less No of supplier are
dependency available in the market
. Low switching cost for
the Walmart to shift from
one to another.
Bargaining Low It As there are other High
power of available stores in the
buyers offers market Low switching
variety and cost
convenienc
e at low
price
Intensity of Moderate Amazon and Alibaba are High
competitiv There are the main competitor in
e rivalry less online retailing
 Costo, target and other
direct competitors are create
competitors competition among all in
and they are the market.
market
leader that
will sustain
the
competitive
rivalry low

4. SWOT ANALYSIS:
Opportunities: Online retailing.
Geographic expansion
Increase the no of products
Diversification to any other
products and services
Threats: Heavy competition
Technology development
Regulation in different
countries

Strength: Customer loyalty and equity

Its products and services
Low priced products
Globally available
in the market
Efficient supply chain
Weakness: Weak reputation in the
market Lawsuits and fines
for corruption and bribes.
5. What is the market cycle
In this case, Walmart is in the standard market cycle and this is because of certain factors that are
possessed by Walmart and which are Firm is continuously upgrading the quality and its
capabilities. It’s less costly to imitate but it is protected its proprietorship rights from its
competitors. Large volume, size of mass market, economies of scale and competition in market is
intense
6. key issues?
There were following key issues/ problem with Walmart.
a. The employees and labor relations
 b. The strict law and regulations of the government.
c. Lawsuits and all fines were also the main reason for the decline in its reputation.
d. The main issue was to grab the online market in which Walmart fails to attract its
customer because of the competitive market and availability of the amazon and Alibaba.
7. Choosing the best alternative
- Walmart should give its more focus on online retailing it is a very good opportunity
for the Walmart to convert its opportunity to its strength.
- The growth in online retailing are quite high and there is a huge market available. -
Walmart should improves its HR functions to retain its employees.
8. Competitive Advantage includes
1- Tangible resources
i. Physical resources (Walmart has wide range of warehouses, stores and procurement
centers, and buildings)
ii. Organizational resources(company is having defined structure at which jobs are
rightly assigned and fully utilized under organizational leadership)
iii. Technological resources ( Walmart is technologically sound and equipped but still
needs some more work on developing this resource)
iv. Financial resources( it sounds revenues and profits lets Walmart financially more
stable and competitive enough in market)
9. What are the Four Criteria of Sustainable Competitive Advantage

Valuable: these capabilities exploit the opportunities and neutralize the threat, in this case
Walmart has also some valuable capabilities like, they have no of huge product available, its
cost strategy.
a. Rare: which can’t be possessed by everyone in the market, whereas in the case of
Walmart, their supplier’s poll, extreme low cost are the rare capabilities.
b. Costly to imitate: which cannot be copied easily.
c. Non-substitutable: These are the capabilities that can’t be substitute by others and these
are not possess by Walmart because other players are also possessing and having the
same kind of availabilities.

10. activities of company’s value chain?

Value chain is the process of studying operation in order to analyses the entire chain that where
they are adding value and where not so they can add more in it. Generally, companies performs
primary activities & secondary activates.
In the case of Walmart, Walmart follows these Primary activities;
• Inbound logistic( Walmart purchases all inbound materials and placed in their warehouse
in bulk )
• Outbound logistics ( the same products are sold out also by performing outbound
operations)
 • Marketing & sales( their stores and retailing do all those sales and marketing efforts ,
more and more price attractive and store ambiance for better customers experience)
• Operations ( company perform certain function in placing those all products in their
respective categories in stores and again placing materials in the stores and managed
efficiently)
• Services ( company also gives return and feedback services from its customers polls
whereas they are also providing services to their suppliers as well) Whereas in the
secondary activities;
• Procurement ( this is their major activity of procuring and purchasing material at lowest
cost for better price offering to their customers)
• Human resource management (continuous incentives, training & development to their
sales team and other staff members, hiring and firing operations etc.)
• Firm infrastructure( heavy product availability , better customers experiences and
ensuring better operations at firm level)

11. Business strategic positioning and key business strategies?

Walmart strategic positioning is Cost leadership positing strategy. However, there are certain
other business strategies that make possible for Walmart to be the brand name and highly
competitive and giant in retail & merchandise market;
13.CPM analysis
Company Kmart Target
Critical Success Factors Weight Rating Weighted Rating Weighted Rating Weighte
Scor Score d
e Sc
ore
Advertising 0.25 3 0.75 3 0.75 4 1
International expansion 0.20 4 0.80 3 0.60 2 0.4
Financial position 0.15 4 0.60 2 0.30 3 0.45
Price competitiveness 0.15 4 0.60 3 0.45 3 0.45
Customer loyalty 0.10 3 0.30 2 0.20 3 0.30
Product quality 0.10 3 0.30 2 0.20 4 0.40
Market share 0.05 3 0.15 1 0.05 3 0.15
Total 1 3.5 2.55 3.15

14.EFE matrix

Key External Factors Weight Rating Weighted Score

Opportunities
1. Ease of shopping 0.14 4 0.56

2. Internet shopping 0.14 4 0.56

3. Asian markets 0.12 3 0.36

4. Recovery of global economy 0.10 3 0.30

5. Free trade 0.08 2 0.16
 Threats
1. Local community critics 0.12 3 0.36

2. Technology making product obsolete 0.06 2 0.12

3. Not following customer preferences 0.10 3 0.30
4. Regulation of respective countries 0.06 2 0.12
5. No union 0.08 2 0.16
TOTAL 1.00 3.00

17:QSPM Matrix

Option# 1 Option # as neede

Key External Factors Weight

Opportunities AS TAS weight AS TAS
1. New emerging market 0.09 4 0.36 0.12 0 0
2. Acquisition of a competitor 0.14 4 0.56 0.08 2 0.16
3. Members in trade alliance 0.16 0 0.00 0.10 1 0.10
Threats
1. Increased competition 0.08 4 0.32 0.12 1 0.12
2. Price war 0.10 3 0.30 0.14 0 0.0
3. Competitor oligopoly 0.18 2 0.36 0.09 1 0.09
4. Us dollar exchange rate 0.09 0 0 0.20 0 0
5. Unfavorable taxes 0.16 0 0 0.15 0 0
SUBTOTAL 1 1.9 1 0.47
SUM TOTAL ATTRACTIVENESS SCORE 4.04 2.7

Strategic Alternatives

Add 12 B17s to Shorten Life of

Fleet Current Planes
Key Internal Factors Weight Acquire in Use
competitor Expand internally

Strengths AS TAS Weight AS TAS

1. Unique product 0.11 2 0.22 0.08 1 0.08

2. Location of business 0.09 3 0.27 0.06 2 0.12

3. Worker’s skill set 0.15 1 0.15 0.13 4 0.52

4. Quality of product 0.11 4 0.44 0.15 4 0.60

5. Increasing work productivity 0.09 0 0 0.12 3 0.36

Weaknesses

1. Lack of quality and customer service 0.10 4 0.4 0.13 3 0.39

2. Poor marketing and sales 0.15 2 0.30 0.10 1 0.10

3. Undifferentiated products 0.08 3 0.24 0.17 0 0.00

4. Negative sense to globalization 0.12 1 0.12 0.06 1 0.06

SUBTOTAL 1.00 2.14 2.23