Need help with the questions for this case 9 Walton WalMart

Need help with the questions for this case!

9 Walton, Wal-Mart has grown to become the world\'s largest corporation. In 2014, the discount retailer- whose mantra is \"Everyday low prices\"-had sales had a catchment area containing 100,000 people. Wal-Mart grew quickly by pricing its products lower than those of local retailers, often putting 2 made at a Wal-Mart store. Wal-M large; it is also very profitable. Between 2005 and 2014, the company\'s average ROIC was 14.1%- better than its well-managed rivals, Costco and Target, which earned 11.8% and 11%, respectively. art is not only ready pre-empted them and had spread out to small towns across America Over time, the company became an innovator in information systems, logistics, and human resource practices. Actions taken in these functional areas Wal-Mart\'s persistently superior profitability isresulted in higher productivity and lower costs as based on a number of factors. In 1962, Wal-Mart compared to rivals, which enabled the company to service supermarket business model developed by Mart led the way among U.S. retailers in developing urban and suburban locations, Sam Walton\'s Wal- were ignored by its rivals and which had enough de- realized that, in rural America, people would drive scanners. This information technology enabled inventory accordingly so that the products found in stocking, Wal-Mart did not have to hold periodic an hour to Wal-Mart in a small town rather than sales to shift unsold inventory. Over time, Wal-Mart

Solution

1. Wall Mart targeted smaller towns where the company\'s competitors had limited reach, and established itself by offering lower prices than local retailers, while cutting on expenses through economy of scale, lean business practices and self service stores.

2. The long term strategic advantage was achieved through investment in information technology that enabled it to manage the operations effectively and in cost effective manner, streamlining the supply chain to reduce inventory levels and cut the cost so that the prices can be kept low. Improved logistics and HR functions also led to the enhanced customer service and employees\' motivation and involvement, creating long term assets for strategic advantage.

3. For sustainable growth, Wall Mart diversified into grocery and club business, opening megastores and clubs. It also moved internationally with expansion to Mexico. As a result, the foreign sales generate $175 billion as on today.

4. The company faces difficulties due to saturation in the domestic market and its failures in countries like Germany and South Africa. It also faces difficulties in running the operations in some other countries also. The most viable strategy is to do significant research on target countries and design market specific strategies to devise business models that suit particular cultures the best. The reason is the diversity of markets, their dynamics and cultural differences that make every country a unique case that needs to be tackled in a distinct way.