Walmart

1. Describe Wal-MartÐŽ¦s global strategy? What tactics has it used to become a major global retailer?

Wal-Mart's success is mainly based on its concentration of a single-business strategy. This strategy has achieved enviable success over the last three decades without relying upon diversification to sustain its growth and competitive advantages. In a sense, Wal-MartÐŽ¦s low prices, service, and smile are their leading marketing strategies. However, there is risk in this strategy, because concentration on a single-business strategy is similar to "putting all of a firm's eggs in one industry basket". On the business side, Wal-Mart is the countryÐŽ¦s most sophisticated retailer in terms of using information systems. Their cross-docking inventory and transportation services able them to have the goods needed by the consumer at all times.

In order for Wal-Mart to become a major global retailer, they have closely examined and utilized tactics to profit from their many stores. One great tactic is starting free-trade-zone distribution centers, in turn, saving almost $500,000 annually. Another tactic includes their service from when you walk in the store to when you leave. Also, their bread and butter is again the technology they utilize. They can track how much of one item has been sold on any giving day, and if not a hot commodity at one store, they will ship it out to another where it is being sold much faster.

2. Can Wal-Mart sustain its competitive advantage in global retailing?

Domestically, Wal-Mart is growing through its Superstores. Traditionally, this business is a very low-margin space, but with Wal-Mart's competitive advantages in distribution and leverage over suppliers, they can make it a big winner. International expansion has been robust and will continue to be an important part of Wal-Mart's future growth opportunities. Certainly the Internet provides a growth avenue as well that will open a new faucet for them to potentially take over an upcoming market.

I really think that the growth opportunities for Wal-Mart are just beginning. Any company that can grow net income to $4.4 billion and yearly sales of $137 billion should make you do a double take. I personally feel that a trillion dollars in sales is not unreasonable.

3. 4. Choosing markets to enter is of major importance in global expansion. If you were in charge of Wal-Mart, what European country would you enter next? Why? Would entering this country require adaptation of Wal-Mart's marketing strategy and tactics? If so, how?

If I were in charge of Wal-Mart, I would choose to expand into Russia next. The Russian economic structure nine years ago is still struggling from the collapse of USSR. Russia has achieved some economic progress. Inflation is now under control and the ruble is now somewhat stabilized. The economic situation in Russia makes it a perfect target for a Wal-Mart. Wal-Mart's inventory of heavily discount of brand-name merchandise would offer consumers in this market the quality they desire at prices they can afford. Even though there has been an economic decline, people still seed discounted prices as opposed to high-end goods. Wal-Mart sells reliable merchandise that consumer's need. Russian consumers are looking for quality goods that they need to sustain life at a price they can afford. The fact remains that people need day-to-day items to get by such as milk, eggs, and meat ?things