Walmart’s New Strategy
Essay title: Walmart’s New Strategy
WAL-MARTS NEW STRATEGY
AN ANALYSIS AND PLAN OF ACTION
INTRODUCTION
Wal-Mart has long been known for things both good and bad. For example, on one hand, they provide convenience for the shopper by offering a one-stop shopping experience at an affordable price. On the other hand, a Wal-Mart entering a smaller community can mean death and demise for small-town businesses whose services will now be served by a lower-priced Wal-Mart.
In late October of 2005, the CEO of Wal-Mart, Lee Scott, announced a new strategy. This strategy called for broad systemic changes in hopes of encouraging and achieving sustainability. This paper contains the following three parts: Part I. Analysis of Wal-Marts strategy, Part II. Planning Process for IT at Wal-Mart, and Part III. Conclusion.
PART I: ANALYSIS OF WAL-MARTS STRATEGY
SWOT Analysis
Strengths
Strong name recognition and customer base
Largest retailer in the world
High ability to have an impact socially and economically
Pioneering abilities and experience
Largest employer in the world
Among the highest for net sales in the world
Has maintained an aggressive growth strategy adding new stores at a high rate
Global presence
Weaknesses
The source of public criticism over low wages, poor health care, killing the small town, discrimination, and violating child labor laws
Price deflation because of purchasing a high quantity of items and having to sell at reduced cost (overstocking)
Too many stores too close together
High employee turnover rate
Do not attract higher income customers
History of making promises it cant keep in regards to earnings
So many suppliers they are hard to track
Opportunities
Because of company size and world infiltration, efforts supported can be accomplished
No strong presence in many parts of Europe
Room to increase efficiency of energy in both trucks and stores
Reduction of emissions and solid waste
Provision of affordable health care for all
Wage improvements
Affordable and convenient health care for all
Threats
Other low price vendors such as dollar