• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Competing against Wal-Mart

Extracts from this document...

Introduction

Competing against Wal-Mart Wal-Mart is a giant retailer with 8500 stores in 15 countries, with 55 different brand names. Wal-Mart is also a manufacturing, logistics, IT and supply chain driven company that has retail stores. The power of Sam Walton created strategies and policies for the world's biggest retailer cannot be underestimated, but companies can successfully compete against it. Competitive advantage through differentiation Grocery stores and general merchandise stores need to realign their business plans. ...read more.

Middle

Wal-Mart requires only 10% footage area of its stores and warehouse for storing for inventory, where as competitors require 30 to 35% footage area. New firms and stores can replicate this model for managing inventory, distribution and take the advantage of specialized trade associations to create of group of local companies. And use the association as a platform to benchmark and share best practices. Market Segmentation Market segmentation is a fundamental aspect of Wal-Mart success. Wal-Mart has entered into an era of ?store-of-the-community customization? an attempt to capture a large market share in specific segments. ...read more.

Conclusion

It's a strategy that new firms can adopt which will help to earn higher returns. SWOT Analysis: Retailers should re-define the function they serve. One way to compete with giant retailer like Wal-Mart is to offer goods and services that Wal-Mart does not provide. The key factor to compete and survive against Wal-Mart is to focus on business into a function where retailer can control strengths in the local market by implementing sustainable techniques. Strengths: Effective supply chain management, Targeted marketing, Innovative products and technology. Weakness: Labor laws, Public image. Opportunity: Globalization, E-business, Purchasing power. Threats: Anti competitive practices, Competitors, International laws. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Thai Tuan Textile Company, Vietnam - Marketing Strategies

    One of those was in 2005. When quotas for garment ended after 1/1/2005 among WTO members, Vietnamese garment industry coped up with a huge problem in competitiveness, especially with China. The Agreement on Textile and Clothing made Asian countries lose most of their market share in WTO member states, and Vietnam was no exception.

  2. AVCE Unit-3 Marketing

    For preparation of Marketing Strategy for Cadbury's, that we have to operate some market research, which will include the gathering of Primary Marketing Information and Secondary Marketing Information. While preparing the marketing strategy for Gemini 2 in1, competitors are taken into consideration.

  1. New business plan

    There were 3.885 million arrivals and 3.883 million departures. Overseas visitors accounted for around three-fifths of these movements and New Zealand residents accounted for the other two-fifths. Permanent and long-term (PLT) arrivals include people who arrive in New Zealand intending to stay for a period of 12 months or more

  2. MG 309 Strategic Management

    And if it doesn't make money, then the chances of business survival is less. Thus it's important for firms to maintain their business as well as their customers and this can be done through the use of appropriate strategies in the firm and providing customer satisfaction at the very best level possible.

  1. Estrategias de Marketing para supermercado Cordiez

    al aplicarlas, se vuelva m�s competitivo frente la nueva competencia de Disco? �ndice Resumen Ejecutivo 7 Introducci�n 8 Procedimiento o M�todo 8 Resultados y Hallazgos Principales 9 An�lisis y Discusi�n 11 Conclusiones y Recomendaciones 14 Bibliograf�a y Referencias 16 Ap�ndice 18 Resumen Ejecutivo El presente trabajo analiza la empresa Cordiez

  2. Questions on Globalisation and International Trade

    The falling cost of technology has made it affordable for many developing nations, which has been instrumental in helping these nations improve their share of world output and world exports. The inclusion of these nations, such as China, India, Thailand, and South Korea, has been instrumental in the globalization of markets and production.

  1. How does an international chain hotel and individual hotel operate differently ?

    But this the only way they can hold it because if they don?t do it this way then they can?t earn enough to cover what they had expends and they will collapse because there is only business trip when it is normal days.

  2. Ford Company Analysis - corporate structure and financial analysis

    The main purpose of the committee is: 1. Check management's plans to manage the company's exposure to financial risk 2. Review company's business plan, cash plan, balance sheet, and capital structure 3. Recommend dividend actions to the Board of Directors 4.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work