One there is only one thing in Wal-Mart that impresses me the most and that will be its ability to offer different lines of products to its cheapest possible price. This, I think, serves as the main ingredient for its success since a lot of consumers prefer Wal-Mart store as compared to other retail store in the market as they attracted by the cheap products being offered by Wal-Mart. With the superb management of Wal-Mart to its supplier, the company has been able to bargain more to their supplier which gives them enough room to further lower their prices.
On the other hand, the most unimpressive thing about Wal-Mart will be its unethical treatment/management of its laborers and employees. A lot of new roams around the retail industry regarding the gender biases that the company exhibits to its female managers as well as not giving the necessary working benefits that an ordinary workers should get based on the regulations of the company like health benefits. Answer # 2 Among the five generic strategies proposed by Porter, it is the Focus Strategy that Wal-Mart has been using since its establishment.
Focus Strategy gives premium to the attainment of cost advantage in order to overtake other market players in the industry. Consumers are more prices conscious nowadays and this is being attacked by Focus Strategy in order to provide market competitiveness on a given firm. With the high bargaining power of Wal-Mart to its suppliers, there’s more room for further lowering down their prices or those price discounts that they receive from their supplier can directly go to their profit.
Moreover, the fact that Wal-Mart pays its workers on minimum rate, then, the company has been able to fully minimize their operational costs. In this regard, it is already clear how production cost can be utilized efficiently by a given company for the attainment of competitive advantage that will provide market dominance to Wal-Mart at the end of the day. Answer # 3 The reason why Wal-Mart has been able to facilitate the said strategy over their suppliers and workers will be based on the fact that Wal-Mart is the largest retailer not only domestically but also internationally.
Therefore, it is not Wal-Mart to look after for suppliers and workers, rather, it is the latter that finds its way to Wal-Mart to become a supplier or a worker since Wal-Mart has the largest number of stores in the market therefore it employs more workers than any other retail store in the market. Also, it means a lot to a certain company when they become a supplier of Wal-Mart since the latter will surely purchase thousands of volumes of products for its entire store in the market.
Moreover, Wal-Mart has been able to fully utilize its workers by requiring them to work even during weekends, although the latter strategy of Wal-Mart will only be morally acceptable if they pay their workers righteously. Answer # 4 The Wal-Mart store in Bentonville was the first store of Wal-Mart and where Sam Walton achieved higher sales volume by charging relatively lower mark up to its products as compared to other retail stores in the market.
After a few decades, the Bentonville become the headquarters of Wal-Mart where top officials stay. In this regard, the reason why the culture in Bentonville is much stronger as compared to other Wal-Mart stores will be the fact that most of the people working in Bentonville are top executives of the company therefore they closely monitor how employees and workers perform their jobs based on their set of company policies and goals which is attached to the culture that was passed by Sam Walton to his employees during the early years of Wal-Mart.
Moreover, top officials who has been in the company for decades easily pass their experiences and inspire their workers to perform their duties in accordance to “Wal-Mart Culture” in order to align themselves with the set of goals and policies as compared to stores outside Bentonville wherein there is no close supervision from the top officials of the company and most of the managers are young that has more contemporary orientation of Wal-Mart’s culture in order to cope up with the changing environment.