Walmart Case
Overview
Before year 2008, Wal-Mart has undergone a lot of pressure against their rivals, economically, socially and politically. Wal-Mart’s Strategy is categorized under Best-Cost Provider, which in turn made them successful during the past 25 years. This success keyed in from the company’s culture, and good leadership. However, the way of governance Wal-Mart has been following has maturity and needs to cope up with the present situation.
This case analysis will let us see what actions Wal-Mart should consider in order to stay ahead in the market and maintain their competitive advantage.
In June 2008, Wal-Mart’s CEO Lee Scott along with the top executives presented a transformation strategy for Wal-Mart’s business model. Due to the Top executive’s transformation strategy for Wal-Mart, the following initiatives were formed:
Change the company’s mission to “Saving People Money So They Can Live Better”
Revise Wal-Mart’s logo to better mirror the company’s shift in emphasis away from “always low prices” and “ we sell for less” to the broader mission “Saving People’s Money So They Can Live Better”
Make a special effort to convince Wal-Mart’s 2.1 million associates why the company’s new mission was more than a hollow statement
Broaden Wal-Mart’s appeal to existing customers and attract new customers to shop at Wal-Mart
Initiate a flat price of $4 for the generic versions of some 200 common prescription drugs
Increase green merchandise offerings and promote their use to customers
Launch a multifaceted “Zero Waste” campaign
Institute ways to make Wal-Mart stores both more energy efficient and supplied by 100 percent renewable energy
Make Wal-Mart an even better place to work
Drive Growth in the company’s international operations via both acquisitions of foreign retailers
Make a positive contribution to the quality of life in every community in which the company conducted business
The above table summarizes the transformation initiatives to three categories (environment, Customers, Employees)
Company Mission
Wal-Mart Stores, Inc. mission was change from “always selling less” to “Saving People’s Money So They Can Live Better”.
Internal / External Analysis
The above financial ratios