- Free Essays, Term Papers & Book Notes

Wal Mart Case Study

By:   •  Case Study  •  569 Words  •  November 26, 2009  •  901 Views

Page 1 of 3

Essay title: Wal Mart Case Study

When you think of the discount retail industry there is no bigger name than Wal-Mart. Wal-Mart has built them selves into the industry leader in a very competitive market, and they continue to set the bar for every company. But as of late Wal-Mart’s sales growth rate has been slipping, which is causing a major problem for them. For the past few years Wal-Mart has grown accustom to double digit sales growth rates, but recently they have been unable to match their previous success. Now Wal-Mart is faced with the challenge of regaining the success that they once had.

In order to recapture these high growth rates it is important to understand what lead Wal-Mart to these high growth rates in the first place. When analyzing Wal-Mart externally you find that its 5 forces tend to have a positive effect on the company. The company has high barriers of entry, a moderate threat of rivalry with Target and Kmart due to its expansion of super centers, and its incredible power over all its suppliers because Wal-Mart purchases so many products, the suppliers have little negotiating powers, and finally Wal-Mart technically has a great amount of power over its buyers because of its product variety and low prices.

When analyzing Wal-Mart internally you discover may things that lead to their success. Probably the number one thing that led to success is their world class supply chain. Wal-Mart’s supply chain is remarkable and really allows them to cut cost by eliminating unneeded steps. For instance their supply chain is so high tech that it can notify Wal-Mart’s suppliers directly (cutting out worker intervention) when inventory is low for certain products. Another internal strength that has lead to Wal-Mart’s success is its ability to focus on driving costs down to ensure every day low prices. Wal-Mart has never drifted away from this motto. This has led to Wal-Mart’s extensive self size and amount of products offered which allows them to take advantage of economies of scale subsequently

Continue for 2 more pages »  •  Join now to read essay Wal Mart Case Study and other term papers or research documents
Download as (for upgraded members)
Citation Generator

(2009, 11). Wal Mart Case Study. Retrieved 11, 2009, from

"Wal Mart Case Study" 11 2009. 2009. 11 2009 <>.

"Wal Mart Case Study.", 11 2009. Web. 11 2009. <>.

"Wal Mart Case Study." 11, 2009. Accessed 11, 2009.