Strategy Analysis of Wal-mart 沃尔玛战略分析 中英文


Strategy Analysis of Wal-mart 沃尔玛战略分析 中英文

foreign retail enterprise already occupied 60 per cent of the domestic market, as the representative of the supermarket, and these are still actively expand their territory . 2.1.3 The competitor environment

Wal-mart’s main rivals have carrefour and metro. Take Carrefour for example, it is the world’s second-largest retailer, which has 4000 chain stores in France and accounting for 30% of retail market sales; In 31 countries with 9200 more stores, the most internationalized retail enterprises in the world. Carrefour is the largest retail in Spain, Portugal and Greece, while Wal-mart has no even a branch in these countries, carrefour preempted the 20% of the market share for its incomparable advantage in Brazil.

2.2 The internal environment analysis 2.2.1 Resources Tangible resources ①Financial resources

Wal-mart has the abundant capital as it is a world famous retailer enterprise, and its use of capital is very planning, using low-cost strategies, win formidable profits, as it appears in the development of Chinese market: year sales profits Shop number From the table we can see that Wal-mart is in the rapid expansion of the 50th consecutive years, and get on a higher level every 10 years, it still did not stop until today.

②Organizational resources

Wal-mart uses concise divisional organization, there are four divisions under the company’s headquarters, the four divisions organize shopping plaza (including discount store managers), members-only warehouse club, international business and

1960 $1.4 million 1970 $31 million 1980 $1.2 billion $41 million 276 1990 $26 billion $1 billion 1528 1998 $133.2billion $4.1 billion Over 3000 $112 thousand $1.2 million 9 32

logistics business respectively. The division is under the management of two shops, which manage the shop location, open, stock, inventory, sales, finance, promotion, training, advertising, public relations and so on directly through four levels: the division President, regional CEO, the regional manager and the store manager. ③Physical resources

Wal-mart stores follow strategy of “saturation” in the expanding, requiring the distribution center to send the goods to the target shop in one day. Therefore, in order to distribute goods for 150-200 stores within one day, the distribution center address must conform to this strategy. Store, no matter how far the storms from the distribution centers, its location must maintain the transportation distance within a day, and then the region send the corresponding orders to branch distribution centers back. ④Technological resources

Every shop is an investment center, so its performance can be evaluated by for the proportion of profits and the inventory investment. All the shop sales, expenses and profit and loss data can be collected﹑analysed﹑transmitted in time through the network. We can analyse these data according to the area, region, shops, stores in different departments and even the various types of every departments. Intangible resources ①Human resources

The dedication and teamwork spirit of its employees are the most unique advantage of Wal-mart, which benefit from Wal-mart’s human resources policies -- keep talents, developing talents and recruiting talents. Wal-mart see their employees as their \②Innovation resources

Wal-mart’s success largely due to the wise collocation of cutting-edge technology and logistics system, and Wal-mart practice it at least ten years earlier than most competitors. Wal-mart began using the computer to carry on the management in the early 1970s; In the early 1980s, they spent four billion dollars to buy commercial satellites, which realized the global networking; In 1990s, Wal-mart use the leading global positioning satellite (GPS) to control company’s logistics, improve the

efficiency of supply and win customer’s satisfaction and loyalty with speed and quality.

②Reputational resources

Wal-mart allways try their best on reducing advertising expenses in promotion goods, but they are very generous when donating to non-profit organizations and public welfares. Since 1983, Wal-mart donated $52 million for the charity called “joint road” in other states; Since 1988, Wal-mart raised $57 million to assist practicing a children’s TV program called “children’s miracle”, and it is one of the biggest sponsors’’; Walton is also actively in funding public and private schools, setting up special special scholarship, and helping Latin America students to Arkansas college, besides, he donates a certain proportion of turnover from his own brand “Sam American hits” as scholarship to students who study math, science and computer. Wal-mart attracted large quantities of target customers by establishing good public image and brand image. 2.2.2 Capabilities Effective use of logistics management techniques

Wal-mart can guarantee that the goods from the distribution center to any shop for no more than 48 hours, so Wal-mart can replenish the goods of each stores twice a week on the average, while the other retail shops fill a live every two weeks on average. Wal-mart saves both storage space and lower inventory cost by maintaining inventory less as far as possible. This benefits from Wal-mart’s \supply system: efficient distribution center, rapid transport system, advanced satellite networks and ranchising circulation organization. Effective and efficient management information systems

4,000 stores globally can check each commodity’s inventory, shelves and sales all inventory within an hour by the global network, and notify the train driver the latest information to adjust the best routes for delivery vehicle on the road. Motivating , empowering , and retaining employees

Wal-mart will invite employees with ability and ideas to share their experiences on every Saturday morning rally, as a matter of fact, Wal-mart’s best and the most

creative ideas are commonly from store employees, and those employees will win rewards and recognition, Wal-mart take a profit sharing, bonuses, stock fold buy way such manoeu-vre to enhance staffs’ creativity and initiative. 2.2.3 Core competencies

Wal-mart’s core competencies lie in its good business philosophy and enterprise culture, mainly embodied in the following five aspects: Cutting down the profits in order to sale more products.

Wal-mart avoids middlemen and replenishes goods directly from the factory, get rid of the agent for sale from manufacturers in trade, and decline purchasing price lower from 2% to 6%. Wal-mart will refuse to cooperate if the manufacturer does not agree with the action. Customer’s satisfaction.

The slogan “First, the customer is always right; second, if you have any questions, please refer to article 1.” can be seen in Many Wal-mart stores. They always put the customer in the first place, adhere to the principle of “ten feet attitude”: “I solemnly promise and announce, for every customer within the scope of my 10 feet, I will smile at them and greet with them, just like Sam help me as well.” Wal-mart requires employees to show their eight teeth when smile at customers. Innovating and pursuiting the excellence constantly.

At the technical level, Wal-mart took very active investment in retail information system, and the earliest to use computer tracking inventory, EDI, barcode scanning and wireless gun. In management level, in order to adapt to the changing needs of the consumers, Wal-mart do locally business overseas, explore new retail mode continuously. Respect for individuals.

Wal-mart calls its employees “partners” or “colleagues” instead of “employees”, there is no discrimination phenomenon although the division of staff levels is clear. Pay attention to long-term interests.

Wal-mart beat its competitors through establishing the loyalty, and formed long-term partner with mutual benefit through mutual respect with suppliers.

2.3 SWOT analysis of Wal-mart: Strength:

1. Wal-mart is a famous brand in retail, and it has good enterprise image and brand image, we can experience the \2. Perfect goods with low price;

3. Everyday low price, diversification of products, strong logistics system and leading IT technology;

4. Humanized management, Wal-mart pay great attention on human resources management, and they see their staff as partners and excellent talents;

5. Wal-mart has the most outstanding suppliers in the world, and they get better prices through large-scale purchasing. Weakness:

1. Controlling is not strong;

2. Because of the various products, which covers clothing, food, and other departments, Wal-mart comparatively has no flexibility compared to other competitors whose products relatively concentrated, so Wal-mart’s competition exist disadvantages;

3. The process of globalization is not enough, Wal-mart only opens up a few national markets currently. Opportunity:

1. Take the way of acquisition, merger or strategic alliance to cooperate with other international retailers;

2. Focus on pecific markets such as Europe and china. Threat:

1. Becoming the catching-up target of all competitors;

2. Globalization strategy makes it possibly meet political problems in business countries ;

3. A variety of consumption goods cost trending down.

III. Strategy formulation

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