Wal-Mart Case Study

WAL-MART CASE STUDY

Wal-Mart Study

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WAL-MART CASE ANALYSIS

Impressions

Wal-Mart is a company that leads its industry in numerous areas. The areas which impress are the accomplishments the company has made. “About 140 million people in 11 countries shopped at Wal-Mart …every week. More than half of American shoppers visited Wal-Mart at least once a month…an estimated 82 percent at American households have made at least one purchase at Wal-Mart” (Bianco, Zellner, 2003).

Less impressive is the company being involved in over 6000 active lawsuits and what seems to be a proven track record of forcing out smaller business in the areas it locates to, putting many people out of work.

Success

Wal-Mart’s Success can be contributed to leadership, strategy and execution. They have implemented a winning, “can do” attitude of putting the customer first in everything and stream-lining all areas of the company, from the leaders down to the associates. This was superb implementation and execution by the leaders to actually take the time to think of everything the company needs to consider from the top, down. The company continues to evaluate how to be cost effective in getting products to the stores, keeping track of inventory, and earning customer loyalty. Evaluating ideas to increase sales and how to better operate the stores has played a key role in their success.

Strategy

This researcher would characterize Wal-Marts’ strategy as Market penetration and Market development. Market penetration is strategies focused “primarily on increasing the sales of present products to present customers” (Donnelly, Peter, 2007). Market development is pursing growth of the company by seeking “to find new customers for its present products” (Donnelly, Peter, 2007). Chief components of Wal-Mart’s strategy are they have used cutting edge technology, created strong relationships with suppliers, developed efficient distribution centers with their own truck fleet, and have kept store construction and maintenance economical.

Elements and Characteristics of Wal-Mart Culture

The chief elements and characteristics of Wal-Mart’s culture are customer service, striving for excellence, and treating everyone with dignity and respect. The culture seems to be much stronger in Bentonville than out in many stores due to this being the founding place of the company and the location of the main corporate offices. Wal-Mart has built a community which prides itself on all the mentioned values. They are the ones who set the example for the rest of the company.

Success and Performance

The company’s success and performance between 2000 and 2004 seemed