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I think the best way to start an analysis about Wal mart strategy is to see where the company is now with the use of a brief Swot analysis

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Alberto Lippolis WAL MART Wal Mart is the largest retailer in Canada , Mexico and USA. In addition to that Wal Mart has been known in USA not only for its dimensions but also for a very big number of reasons and good values. I think the best way to start an analysis about Wal mart strategy is to see where the company is now with the use of a brief Swot analysis. As far as the Strengths are concerned , I think that one of the most important features Wal Mart has is the customer approach. Sam Walton wanted its organization to provide the customers with the so called "aggressive hospitality" and with this Walton meant that the employers have to provide the customers with all they need , they always have to be friendly and think like the customers. Naturally the biggest strength was the price. Wal Mart can provide the best price among the all retailers in its category. Wal Mart has the best price because of its strategy and its relationships with all the production chain that I'll describe later. Another important feature is the differentiation in the different types of stores. For example Sam's club can provide prices 10-15% below the standard prices to serve small businesses and to them who have paid the member fee. ...read more.


The relationship with Wal Mart is important for these suppliers because it adds some competences to the knowledge of the suppliers and it helps them to work better in their own businesses. The company established also some standard for the suppliers to enhance its strategy and it created a team of controllers to verify that the standards were respected. To better cut the costs Wal Mart has positioned its stores near the suppliers to provide fast delivery and it has set up a truck fleet with expert drivers. As we know in the process of executing a strategy is always important to recruit good employees with the skill needed to best perform in their job. In addition to that the company provides the drivers with structures where to eat and to sleep between one and another delivery. Another important fact about the strategy was the employees treatment. The decision making in Wal Mart can be defined as a "Decentralized decision-making" and this helps the employees to feel an important part of the company. The employees are called associates and they are encouraged to give advices in the process of implementing and executing the strategy. The structure of the company is horizontal and the bureaucracy is very low. The managers often walk in the shops to listen to the employees and to catch some important advices that otherwise they wouldn't catch. ...read more.


As the word of mouth is fast for the positive facts , is even more fast for the bad things. The management has to work very hard on this problem and the solution could be giving the same possibility ,as the men ,to reach high level in the management and in the wages to the women . According to that the management has to deeply study a way to give some particular incentives to the women and to organize some special programs (incentives , fringe benefits , more possibility to raise ) that can completely cancel this very big problem. Another problem concern the fact that some small town doesn't want Wal Mart to install its stores because they want to maintain a sort of local economy that would be destroyed by the opening of a Wal Mart store. As we know Wal Mart sells highly standardized products and for the people the switching cost to change from one to another store is very low. I think that Wal Mart is big enough and that the management has now to concentrate on the numerous issues that are arising in this moment. It would be better for the company to stop for a moment its projects of expansion . In addition to that Wal Mart is excellent in America and it's not obvious that it will be excellent in other countries too. In other countries there different cultures that may not match the Wal Mart strategy . 1 ...read more.

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