Wal Mart : analysis of a successful enterprise

Résumé du document

Although there is a growing controversy on the company Wal-Mart's business practises, it remains a successful company. Currently, Wal-Mart operates 600 units in 31 states with annual sales of US $10.1 billion. In Mexico, the company has 597 stores and restaurants in 58 cities. In addition to the discount chain, Wal-Mart and its bulk branches like Sam's Club and Bodega, Wal-Mart owns, VIPS and diners that serve everything from cheeseburgers to chicken enchiladas. It also owns the supermarket chain 'Superama' and the clothing and home goods store 'Suburbia'. Forty percent of Wal-Mart's 1,270 foreign stores are in Mexico. Inside the United States, Wal-Mart has more than 3,400 stores. Wal-Mart has achieved success internationally because of its ability to transport the company's unique culture and effective retailing concepts to each new country. The associates of the company get involved with the local communities and adapt to local cultures. They respond to customer needs, merchandise preferences and local suppliers. By serving each hometown in its own unique way, Wal-Mart International has realized significant growth with a potential for much greater development worldwide.

Extraits

[...] History Wal-Mart is America's and the world largest retailer. Founded by Sam Walton in the 1960's. B. Concept Concept The company operates three basic store formats: Traditional Wal-Mart stores that sell a wide range of basic consumer merchandise from household products to clothes and electronics. Wal-Marts super centers which are larger stores that have added groceries to the basic merchandising-mix. Sam's Club which are deep discount stores that carry a limited range of very low-priced merchandise and food. The Wal-Mart Culture Sam Walton's 3 Basic Beliefs the company was built on. [...]

[...] The company opened a distribution center in Mexico City. This allowed Wal-mart to reduce its inventory and logistics cost. Wal-Mart made a three-way partnership with EASO (trucking company) and MS Carriers Corp US trucking company). MS Carriers Corp shared its fleet of modern trucks with EAO as well as its satellite systems to help plan delivery times. EASO thus was able to cut its costs by 25% which was passed on to Wal-Mart. Since many suppliers had located in Mexico to take advantage of lower production costs and of NAFTA, Wal-Mart dealt with them. [...]

[...] Forty percent of Wal-Mart's 1,270 foreign stores are in Mexico. Inside the United States, Wal-Mart has more than 3,400 stores. Wal-Mart has experienced success internationally because of its ability to transport the company's unique culture and effective retailing concepts to each new country. Associates get involved in the local communities and adapt to local cultures. They respond to customer needs, merchandise preferences and local suppliers. By serving each hometown in its own unique way, Wal-Mart International has realized significant growth with potential for much greater development worldwide. [...]

[...] Wal-Mart has developed a culture and control system that creates incentives for associates and managers to give their best for the company. The result is higher employee productivity, which again translates into lower costs. II. MEXICAN EXPERIENCE A. Why Mexico? By 1990, Wal-Mart wanted to expand outside of the United States because the market became saturated and the growth would inevitably slow. The company put up two strategies: The expansion into grocery business with the opening of Wal-Mart Supercenters that would stock Wal-Mart's traditional merchandise, plus food products. [...]

[...] Wal Mart SUMMARY I.WAL-MART A. History B. Concept C. Competitive Advantage II. MEXICAN EXPERIENCE A. Why mexico? B. Unexpected difficulties C. Peso Crisis D. Outcome and Wal-Mart's position E. Contrast with other retailers. III. [...]