Strategy Analysis - Walmart

Strategy Analysis - Walmart - Strategy Analysis: Wal-Mart...

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Strategy Analysis: Wal-Mart By Group 9: Korgaonkar Maitreyee Su Dilip Tommy Monson
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Generic Strategy Porter defines three generic strategies- Cost Leadership, Differentiation and Focus. Wal-Mart is mainly concerned with cost leadership. Aggressive construction of efficient scale facilities Pursuit of cost reductions from experience High relative market share
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Operational Effectiveness All of the activities are streamlined to obtain a high level of operational effectiveness unmatched in the industry. Administrative costs only account for 2% of sales since all vice presidents are located at a single location. Building rentals account for only 1.8% of sales, the lowest for any discounter.
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Excellent distribution system/logistics with centralized purchasing and hub and spoke model with one distribution center for every 150-300 miles leads to timely replenishment of stock as well as return of defective products leading to a high inventory turns of 4.5, unmatched by other discounters.
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This note was uploaded on 03/01/2012 for the course STRATEGY Om121 taught by Professor Abhinavdhar during the Spring '12 term at Harvard.

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Strategy Analysis - Walmart - Strategy Analysis: Wal-Mart...

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