Walmart

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Category: Business and Industry

Date Submitted: 01/04/2011 04:33 AM

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1. What did you know about Wal-Mart before viewing the documentary? What most surprised you about the documentary?

* Wal-Mart is world’s biggest retailer and the sell products with low prices in large stores. What surprised me was the negative influence on manufacturing in the U.S. and that Wal-Mart forces suppliers to move manufacturing to China.

2. What does the Wal-Mart film tell you about the US business environment? What forces are driving that environment?

* It is extremely competitive. Buyers tell the prices they are going to buy with and suppliers have to obey if they want to supply to Wal-Mart.

3. What is Wal-Mart’s business strategy?

* Buying and selling out products with lowest prices.

4. What is/are Wal-Mart’s competitive strength(s)?

* Wal-Mart has effective operations and it uses the pull strategy. It has the power to tell its suppliers at which price Wal-Mart is going to buy.

5. How does Wal-Mart implement its business strategy? Does the company’s business model support its strategy? (hint: dealings with suppliers)

* Do not negotiate on prices but push the prices

6. Who has benefited most from Wal-Mart’s strategy? In what ways? Who has not benefited from Wal-Mart? In what ways?

* Wal-Mart itself is making profits and also Chinese suppliers get orders from Wal-Mart. U.S based manufacturers lose because they can’t compete with the Chinese manufacturers’ prices so they often have to shut down or move to China.

7. Has the documentary influenced you on how and where you will shop?

- I have never shopped at Wal-Mart but I think I will be more critical when buying products with low prices.

8. How successful is Wal-Mart? Provide financial and market data.