Walmart Case

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...