Submitted by: Submitted by edy30x
Views: 486
Words: 538
Pages: 3
Category: Business and Industry
Date Submitted: 03/16/2011 04:04 AM
WAL-MART Strategy
• Focus on low costs
o They sell office supplies like Office Depot, electronics like Best Buy, and hardware like Home Depot, but do not offer as wide variety as other competitors.
Wal- Mart approach is based in
• Economies of scale.
o Wal -Mart lower costs by purchasing larger quantities. They distribute these products efficiently to a large number of stores strategically located to minimize transportation and related costs.
Strategies to Confront Wal-Mart Threat (based on the 4 key success factors in Strategy)
1. Long Term Objective
a. Company´s mission, in our case Carrefour´s mission.
2. Knowing our limitations
a. We might not have the same budget as WM but we can compete on quality, service, and convenience.
3. Knowing our competition (WAL-MART, environment)
a. Huge market size and access to capital.
b. Excellent distribution and supply chain efficiencies.
c. Low-cost and part-time labor, keeps costs down.
d. Wal-Mart's approach assumes that price is the primary factor consumers evaluate when choosing a retailer.
e. While Wal-Mart is able to offer high-demand products at low prices, its sheer size makes it difficult for associates to deliver exceptional customer service on a consistent basis, a key component in the consumer shopping experience.
4. Effective Implementation
* Strategy 1: Focus--Low Costs
• We could market only a limited number of products to a highly defined end user.
• We could save costs
o If customers bag their own groceries or bring their own bags.
o Different use of its shopping (insert a quarter to unlock a cart from the interlocked row of carts located outside the store entrance. The quarter is returned when the cart is locked back into the group. As a result, no employee time is required to collect stray...