• 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

    Obviously, most of people philosophy was "An chac mac ben", meant that I cared my foods in quantity rather than quality, I bought my clothes if they could be used in long time rather than fashionable. A decade later, people income was remarkably increased plus a wide integration with the world.

  2. AVCE Unit-3 Marketing

    I have managed to query 50 people with different age groups. The questionnaire contains the results which have been observed. 1. Age Group: 10-20 = 15 20-30 = 6 30-50 = 9 50+ = 20 2. Gender: Male = 22 Female = 28 3.

  1. New business plan

    The unique features of our products and services will differentiate our venture from other restaurants; we'll provide more than mere tasty food. These features will help our products to penetrate the market and create value for customers. In addition, as the imitation imperial cuisine can not be easily copied without

  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. Ford Company Analysis - corporate structure and financial analysis

    (R1+ R2+ R3 + R4)/4 = 0.89 Variance and standard deviation of return 2011: Var(R)= 1/(t-1) (R2008 - )2 + (R2009 - )2 + (R2010 - )2 + (R2011 - )2 Var(R)= 2.319 SD(R)== 152.3% Standard error and 95% confidence interval: Standard error= SD(R)/4 Standard error= 76.15% 95% confidence interval= Historical average return ± (2x standard error)

  1. Questions on Globalisation and International Trade

    Managing an international business is different from managing a purely domestic business for at least four reasons. These are: (1) countries are different; (2) the range of problems confronted by a manager in an international business is wider and the problems themselves more complex than those confronted by a manager in a domestic business; (3)

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

    This hotel would not have financial pressure as much as chain hotel since they don?t require certain performance for customers. In addition, their price are fixed so the set pricing policy will be somewhat change to ensure a constant revenue.

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