Wal Marts strengths

1
Wal Marts strengths

• Dominant presence in domestic market in multiple
  formats (discount, wholesale, grocery)
• Low prices
• Tapping the global market
• Visionary founder
• Wide variety of merchandise
• Customer friendly policy
• Continuous upgrading of stores
• Champion of social causes
• Size offers bargaining power in dealing with
  suppliers

2
Strengths Distinctive competencies (sustainable)

• Capability in managing distribution and inventory
• Technological infrastructure
• Plans for distribution centers, stores
• Management style (not restricted to the corporate
  level) knowledge exchange
• Corporate culture
• Founder
• Emphasis on values
• Employee involvement and motivation
• Flexibility - identifying market trends, use of
  benchmarking

3
Weaknesses

• Loss of founder
• Implications for maintaining corporate culture
• Large size promotes inertia
• May impair speed of response and flexibility

4
Threats, Generic strategy

• Increasing competition
• Unionization of workers
• Opposition from local communities (curtails
  future expansion)
• Generic strategy
• Low cost and differentiation

5
WalMarts evolving strategy

• 1997 - 1,995 discount stores and 229
  supercenters
• 2002 1,640 discount stores and 1,100
  supercenters

6
Carrefour v/s WalMart

• Battle in Argentina
• WalMarts miscalculations
• Merchandise mix
• Store design
• Learning from experience in La Plata

Source NY Times and Carrefour WalMart web sites