Case study : WalMart

Résumé du document

Wal Mart's position as the world's biggest and most successful retailer owes much to a business model based heavily on new process technology and novel approaches to organization.
WM faced challenges in adapting its US based retail mix and stores layout to the local culture, in Argentina, in Brazil, Canada, China, Germany, South Korea, Mexico, Puerto Rico, United Kindom.

Extraits

[...] Transferring competitive advantages in other countries was mixed: In countries close to USA (Canada, Mexico) and countries with similar culture was successful. The main reason was knowing the culture In other countries, with different cultures (Argentina, Germany, Indonesia) Wall-Mart wasn't so successful. The company had to adjust to local conditions. The main source of trouble were probably workers. In Germany there are probably stricter conditions about wages and working hours. Bibliographie indicative The Walmart Way Not Sam's Way: An Associate View from Inside the Stores de Julie Pierce Ed. [...]

[...] What measures does WM need to take to sustain its recent performance and defend against competitive or other threats? In the future they will have to change the strategy. To put good-sized stores into little towns that everyone else was ignoring, this strategy does not work, because the competitors also do the same. primary strategy very low costs should be changed to better marketing promotion improve more the system of awarding and instructing the employers because the possibility of making progress is not enough succesful. [...]

[...] EMPLOYEES Small wages, but still motivated employees due to: High degree of autonomy Bonus to associate if a store met corporate goals Good possibilities of promotion Encourage to invest in company's shares (being part of company) Enocourage to give new ideas Continous communication about company's performance 3. BARGAIN POWER WM involved itself in suppliers' employment policies in so they can meet Wall-Mart expectations Avoiding dependance on one supplier can change the supplier if it becomes too expensive or unreliable WAREHOUSING AND DISTRIBUTION: Unlike other discount retailers 80% of Wall-Mart's purchases are shipped to Wall-Mart's own distribution centres, Highty automated 1. To what extent is WM's comparative advantage sustainable? [...]

[...] Solution: different approaches in each country First they challenged the problems because of differences in the culture Mexico and South America: access through local knowledge and local resources (trying to name itselfs as a local comune business, they are closer to costumers) UK (because of the affinity of the strategy, it founded the chain with similar goals and strategy Success factor are also the own distribution centers. They could buy in volume at attractive prices and store the merchandise. This enabled rapid expanison in the country. Expansion brought WM into closer competition with other discount chains (Kmart, Target). [...]

[...] MARCHANDISING was adopted to local needs 6. PURCHASING: WM involved itself in its suppliers employment policies in order to ensure a good quality CUSTOMER SERVICE: Engage with it's customers at a personal level 8. MARKETING: Low cost in marketing due to word-of-mouth advertising 9. REPUTATION: Well established company with strong reputation WM's comparative advantage is highly sustainable Why have other retailers had limited success in imitating WM's strategy and duplicating its comparative advantage? 2. Why have other retailers had limited success in imitating WM's strategy and duplicating its comparative advantage? [...]