Walmart Case Analysis
...the Marketing Strategy for Greater Relevancy 5
Figure 1: Wal-Mart Segmentation Strategy 8
Figure 2: Customer Segment Loyalty Analysis 10
Human Resources Lack Compliance and Governance 11
Figure 3: Wal-Mart’s Chain of Command 14
Ethnocentrism Rampant In Global Growth Strategies 15
Competitive Strategies must get Beyond Price Wars 18
Wal-Mart’s Competitors 19
Figure 4: Big Box Retailing Market Shares, 2007 20
Responding To an Emerging Recession 22
Company Analysis 23
Wal-Mart Strengths 23
Wal-Mart Weaknesses 25
Wal-Mart Opportunities 26
Wal-Mart Threats 27
Industry Analysis 28
Figure 5: Comparing Store Statistics 30
In applying the Porter Five Forces Model to this industry, the following insights emerge by area. Figure 6, Porter’s Five Forces Model, provides the theoretical structure for the analysis. 31
Threat of New Entry 31
Competitive Rivalry 31
Supplier Power 32
Buyer Power 32
Threat of Substitution 33
Alternatives 33
First Alternative: Heavy Investment in Merchandising and Marketing to Increase Same-Store Sales 34
Second Alternative: Increase process-related and IT investments, including RFID in the Wal-Mart global supply chain so aggressive pricing can be pursued. 34
Third Alternative: Enable Global Market Growth by capitalizing on analytics, merchandising, supply chain and technological expertise. 36
Recommendations 37
Figure 8: Wal-Mart Value Chain Analysis 41
Appendices: 42
References 43
Executive Summary
Wal-Mart faces a daunting series of challenges beginning with the need to refine and strengthen its core marketing strategies in the U.S., resolve Human Resource compliance violations, and learn from failures to expand globally and to be successful in China and India. In addition to these challenges, Wal-Mart faces stiff competition from competitors who are...
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