Wal-Mart Store Inc.

Wal-Mart Vision: Do it, try it, and fix it!

Wal-Mart Mission: Give ordinary folks the chance to buy

the same things as rich people.

Core competency: Information technology

Cost of Supply chain Low•Biggest customer & Biggest seller•Bottom line price•No funny-money cost

Cost of Technology Normal•Cost of IT lower than competitors (less than 1% of revenue, far less than other retailers)•Cost of automated system higher than competitors

Cost of Operation Normal•The Lighting, heating, and air-conditioning controls were connected via computer to Bentonville headquarters

Cost of Marketing Low

•0.3% of sale (1.5% for Kmart; 2.3% for Target)

Cost of Distribution Normal

•Truck driver cost high •Distribution center operation normal•Store construction and maintenance low

Cost of customer service low

•Member card only

Quality of Supply chain Very High

•Strong relationship ( “vendorville” involved in Wal-Mart future plan; Learn from collaborative effort; data sharing)•Little conflict due to single bottom-line price

Quality of Technology Very High•First-mover among retailers•Focus on information technology (IT)•Wal-Mart develop its own IT system, has strong capabilities

Quality of operation Normal

•Nothing special

Quality of Marketing Normal

•Word of Mouth, something to talk about: low price

Quality of Distribution High•Distribution center working very efficient together with their store expanding plan•Driver--More than 300,000 accident-free mile•Stores easy to maintain & relocated

Quality of Customer Service High•Satisfaction Guarantee•Aggressive hospitality -- Greeter•10-foot attitude•Pay attention to details

• Threat of new entry

• economies of scale• strong brand identificati

on • customer loyalty• distribution channels• Technology

• Bargain power of suppliers

• % of sales• good and long standing

relationship • established suppliers

standards

• Rivalry among competing sellers

• Threat of substitute products and service

• Bargain power of buyers

• “Every Day Low Price” • “Rollback” • “Special Buy”

Weaknesses

Strengths•brand •substantially •information technology •Supply chain

Threats•target of competition•political problems •Intense price competition

Opportunities:•take over, merge with, or form strategic alliance •expanding consumer markets. •New locations and store types

Problem Identification & Recommendation

• Global Expansion

• Criticism regarding on employees’ wage and insufficient medical benefits

• Public image

• Global mindset and global awareness

• Increase employees welfare

• Hold more charities and ethical training