This report should call attention to the success story of Wal-Mart and reveal by using
appropriate strategic framework why they are one of the most controversial companies.
Subsequently, the goal of this strategic analysis is to examine Wal-Mart’s quest to dominate international markets. In addition Wal-Mart’s corporate identity will be discussed and several solutions to the challenges will be proposed.
Table of Contents
- 1. Introduction
- 2. The Wal-Mart Success Story - Overview of the Business
- 3. SWOT-Analysis
- 4. Retail Industry Analysis - Porter's Five Forces
- 4.1 Bargaining Power of Buyers
- 4.2 Bargaining Power of Suppliers
- 4.3 Threat of New Entrants
- 4.4 Threat of Substitutes
- 4.5 Intensity of Rivalry
- 5. Competitive Advantage
- 5.1 Causal Ambiguity
- 5.2 Wal-Mart's Business System
- 6. Internationalisation
- 6.1 Wal-Mart International
- 6.2 Wal-Mart Germany
- 6.2.1 Why is Wal-Mart not successful in Germany?
- 6.2.2 The Strategy Of Wal-Mart in Germany - and why it failed.
- 7. Wal-Mart's Corporate Identity
- 7.1 Workforce Conditions
- 7.2 Unionisation Difficulties
- 7.3 Expansion in Other Sectors
- 8. Conclusion: Strategy Advices
Objectives and Key Themes
This report aims to analyze Wal-Mart's remarkable success and its controversial nature using a strategic framework. It examines Wal-Mart's international expansion strategy and explores its corporate identity, proposing solutions to existing challenges.
- Wal-Mart's business model and its success in the American retail market.
- Analysis of Wal-Mart's competitive advantage using Porter's Five Forces.
- Wal-Mart's internationalization strategy and its challenges, particularly in Germany.
- Examination of Wal-Mart's corporate identity, including its workforce conditions and unionization issues.
- Strategic recommendations for Wal-Mart's future.
Chapter Summaries
1. Introduction: This introductory chapter sets the stage for the case study, highlighting Wal-Mart's phenomenal success and its controversial aspects. It outlines the report's objectives, focusing on the strategic analysis of Wal-Mart's quest for global market dominance, as well as the exploration of its corporate identity and the challenges it faces. The chapter provides a concise overview of the subsequent analysis and the proposed solutions to these challenges.
2. The Wal-Mart Success Story - Overview of the Business: This chapter details Wal-Mart's exceptional growth trajectory, highlighting its evolution from a small-town retailer to the world's largest company. It explains Wal-Mart's strategic focus on underserved rural areas, its diversified business model encompassing various retail formats (Wal-Mart Stores, Supercenters, Sam's Club, and Neighborhood Markets), and its remarkable sales growth over the years. The chapter emphasizes Wal-Mart's dominant position in the American retail market and its ambitious international expansion efforts, showcasing its global presence and future growth plans.
3. SWOT-Analysis: This chapter delves into a SWOT analysis of Wal-Mart, dissecting its internal strengths and weaknesses alongside external opportunities and threats. The analysis reveals Wal-Mart's strengths, including its market dominance, international expansion, and exploration of new retail sectors, emphasizing its low-cost strategy, advanced technology, and efficient distribution networks. It also identifies its weaknesses, such as limited brand recognition in global markets, and potential threats like price competition and cultural challenges stemming from its internal policies.
4. Retail Industry Analysis - Porter's Five Forces: This chapter utilizes Porter's Five Forces model to analyze the attractiveness of the retail industry and Wal-Mart's position within it. The analysis examines the bargaining power of buyers, concluding that Wal-Mart's low-price strategy and value proposition mitigate the power of buyers. The bargaining power of suppliers is also analyzed, highlighting Wal-Mart's strategic supplier relationships that allow them to maintain their low pricing despite potential pressure from suppliers. The chapter lays the groundwork for a deeper understanding of Wal-Mart's competitive dynamics within the broader retail landscape. (Note: The provided text only contains the first two forces; a complete summary would require additional information on threat of new entrants, threat of substitutes, and intensity of rivalry).
Keywords
Wal-Mart, strategic management, retail industry, competitive advantage, internationalization, SWOT analysis, Porter's Five Forces, low-cost strategy, global expansion, corporate identity, workforce conditions, unionization.
Frequently Asked Questions: Wal-Mart Case Study
What is the purpose of this report?
This report analyzes Wal-Mart's remarkable success and its controversial aspects using a strategic framework. It examines Wal-Mart's international expansion strategy, explores its corporate identity, and proposes solutions to existing challenges.
What are the key themes explored in this report?
The report examines Wal-Mart's business model and success in the American retail market; analyzes its competitive advantage using Porter's Five Forces; investigates its internationalization strategy and challenges (particularly in Germany); examines its corporate identity, including workforce conditions and unionization issues; and provides strategic recommendations for Wal-Mart's future.
What topics are covered in each chapter?
Chapter 1 (Introduction): Sets the stage, highlighting Wal-Mart's success and controversies, outlining objectives, and providing an overview of the analysis. Chapter 2 (Wal-Mart Success Story): Details Wal-Mart's growth, strategic focus, diversified business model, and international expansion. Chapter 3 (SWOT Analysis): Analyzes Wal-Mart's internal strengths and weaknesses, and external opportunities and threats. Chapter 4 (Retail Industry Analysis - Porter's Five Forces): Applies Porter's Five Forces to analyze the retail industry and Wal-Mart's position within it (partially completed in the provided text). Chapter 5 (Competitive Advantage): Explores Wal-Mart's competitive advantage, including causal ambiguity and its business system. Chapter 6 (Internationalization): Focuses on Wal-Mart's international expansion, with a detailed look at its challenges in Germany. Chapter 7 (Wal-Mart's Corporate Identity): Examines workforce conditions, unionization difficulties, and expansion into other sectors. Chapter 8 (Conclusion): Provides strategic advice for Wal-Mart's future.
What is Wal-Mart's competitive advantage?
The report explores Wal-Mart's competitive advantage through analysis of its business system and the concept of causal ambiguity, alongside the analysis of Porter's Five Forces which examines aspects such as bargaining power of buyers and suppliers.
Why was Wal-Mart unsuccessful in Germany?
This question is addressed in Chapter 6, specifically examining Wal-Mart's strategy in Germany and the reasons behind its failure. The provided text only mentions that this will be explored but does not offer specific details.
What are the main challenges facing Wal-Mart?
Wal-Mart faces challenges related to its international expansion, particularly in adapting to different cultural contexts. Internal challenges include workforce conditions and difficulties with unionization. External threats also exist, including price competition and potential challenges from new entrants or substitute products.
What recommendations are provided for Wal-Mart's future?
Strategic recommendations for Wal-Mart's future are presented in the concluding chapter (Chapter 8), though the specific recommendations are not detailed in the provided text.
What keywords are associated with this report?
Wal-Mart, strategic management, retail industry, competitive advantage, internationalization, SWOT analysis, Porter's Five Forces, low-cost strategy, global expansion, corporate identity, workforce conditions, unionization.
- Citar trabajo
- Dipl.-Kfm. (Univ.), B.A. Christian Kneer (Autor), 2005, The Wal-Mart Success Story, Múnich, GRIN Verlag, https://www.grin.com/document/134367
