Case Study - Walmart Update 2017

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Assignment # 1

Case Study“ Wal-Mart Update 2017”


What Are Wal-Mart Competitive Advantages

1. Every day low pricing


• core low pricing strategy
• Avoiding sales and promotions
2. Clear Target market
3. Competing with both business format
• Brick and mortar retail ( Target)
• Ecommerce (Amazon)
HOW SUSTAINABLE ARE THOSE
ADVANTAGES
• Sustainability of these competitive advantages are
1. Due to Low pricing strategy they surpassed recession period of 2007-2009 which Target
unable to do.
2. Its Clear Target Market sustain in the long run as it increase annual revenue .
3. Internationally it enters in Countries where its target audience in bulk i.e. the Nominal Class
after U.S. market in Mexico. It also has significant business in Brazil , Argentina and Chile.
How Transferable Are Those Advantages As Wal-Mart Moves
Into New Formats And Especially Into New International
Locations

• Wal-Mart touches 4 business formats

1. Discount Stores- 1962 e.g. Walmart Store in Mexico


2. Supercenter-1990’s
3. Sam’Club-1983( account for 12% of Wal-Mart overall net sales)
4. Neighborhood Market – 1998 to reach Urban areas
5. Walmart Express – 2011 ( to compete with convenience and dollar store
• Examples:
• In Mexico ,
• In China ( online retail market) as McMillan – “Middle class Continues to grow”
• In Japan – “ Low price with Low quality”
How Should Walt-mart Respond To Amazon’s Superior
Performance In Recent Years

• Amazon leader in online retail


1. Low Prices, 2. quick delivery 3. Smooth customer experience
• Amazon grew with massive distribution
1. Network of physical distribution
2. Unrivaled online infrastructure
• Strategy taken by Wal-Mart
1. CEO Marc Lore (Jet.com) become CEO of Wal-Mart ( longtime competitor with Amazon
2. It allow users to place orders online and immediate pick-up by near by physical store
The Central Idea Of Case Study

• Wal-Mart
“ Save Money – Live Better
• Every Day Low Price Strategy
• Change Perception in International Market of “ Low Price associating with Low Quality”
• Wal-Mart should grow in Asian Countries on Small- Scale because countries like India and
Pakistan has its Target Market.

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