exam info adms 2200 - Walmart case 1 If successful...

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Walmart case 1. If successful company,Why are you successful? 2. Problematic company, identify problem, use startegies 3. Company that is very successful but has problems -------------------------------------------------------- First what strategy does walmart use? Identify problem: - cost leadership – how do they achieve that? – volume due to economies of scales – how do they achieve this relationship, walmart entered a large number of countries – mexico, hong kong, Thailand, argentina – take business from those countries local businesses. Those local companies retaliate – they merge! – they become more powerful – now walmart has to fight against more powerful competitors than before – MAIN ISSUE IN THE CASE Analyze situation: German market very expensive, labour force very expensive, many competitors Margin only 2%, money in bank – interest higher that 2% German market – stores closed on Sunday, oneday a week can open store to 8 o clock, practice in US is different Walmart has computer system, distribution system
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