Walmart Case Study

Wal-Mart Case Study #1

MNGT 5650 - Management and Strategy

Abstract

The task envisioned when Wal-Mart opened was to save people cash any time, or place so they can continue to survive. Today Wal-Mart is one of the world’s largest general retailors, which employs an average of 2.2 million associates globally while serving over 200 million customers weekly in its more than 10,000 stores in 27 countries. This paper will analyze current strategy and challenges faced by Wal-Mart, while identifying its current threats and challenges. It will address the priorities set by CEO Lee Scott, as well as discuss the proposal defined in the “Supplemental Benefits Documentation: Board of Directors Retreat FY06”. Additionally, it will assess if damage was done to Wal-Mart by the leaking of the Board Benefits Strategy documents to the public. Finally, this paper will mention recent Wal-Mart initiatives from a strategy and Public Relations (PR) standpoint, while discussing strategic social challenges from the standpoint of when social issues become strategic.

Case Study #1 - Wal-Mart

Introduction

Wal-Mart is one of the largest retail companies in the world, which manages retail stores in several other countries. Wal-Mart was constructed with a strategy to offer a broad mixture of products with their everyday low prices in its retail stores. Addition, the company offers its merchandise through e-commerce websites such as walmart.com and samsclub.com. Sam’s Club is a membership only club in the U. S, and internationally its segments are all managed by Wal-Mart. The organizations revenue stream includes income from Sam's Club membership fee, tenant income and financial services income.

In the U.S. the retail formats are discount stores, supercenters and neighborhood markets. The stores in the US provide branded and private label goods sections including grocery, entertainment, electronics, apparel, health and wellness, home furnishing, and house wear. Wal-Mart also offers financial services which include money order sales, wire transfers, check cashing and bill payments. Its sister company Sam’s Club provides brand name products, institutional-sized grocery items and select private-label items under the Member's Mark, and Sam's Club brand, along with some photo processing services, pharmaceuticals, optical departments and gasoline stations. Wal-Mart has had proven success throughout the United States and Canada and even though Wal-Mart has what has seem to be a pretty impeccable business model, there are still some major problem and threats that threaten the organizations reputation and profit potential

Wal-Mart Threats and Challenges

While many businesses organizations have seemed to face issues during these severe economic times, Wal-Mart has always appeared to be spared destruction. The sales at Wal-Mart seem to have continued to sustain and develop year after year as the retail giant continually grows globally. Currently, Wal-Mart is believed to be facing several threats that if not addressed will have the corporate conglomerate losing money while its customer base spend their money elsewhere. Presently, the emergence of greater than before competition from online and its brick and mortar opponents continues to threaten Wal-Mart. Other challenges and threats such as opposition from local retailers, as well as the rising price of goods also continue to plague Wal-Mart who was once Americans go to national brand retailor.

While Wal-Mart is a brick and mortar retailer, it has joined the ranks of other retailers to adapt to the digital challenge. Though Wal-Mart and many of its other major competitors have felt the bite of online e-commerce cut into their profit margins, according to Bass (2014), “The actions articulated consumers is as long as retailers strategically adapt and adjust their e-commerce digital footprint to what works for them, then brick and mortars are here to stay.” Also Wal-Mart’s major challengers like Target, Costco, and Amazon are making large strides and efforts to price match which in return is reducing the difference of “Low Prices” that they once reveled in. Without setting itself apart from its competition, Wal-Mart has experienced increased threats and challenges in keep up with its competition. Brick and mortar organizations continue to stay relevant and remain a challenge because while consumers enjoy the convenience