Strategic Analysis of Wal-Mart & Toyota
Memorandum
Date: 03/31/2008
To: Teresa Coates
From: Vivek Singh Bhadoriya
Subject: Strategic Analysis
The first Wal-Mart was open in Rogers, Arkansas in 1962. Wall-Mart is the largest retailer in the world with about $1 billion in sales in a mere 17 years becoming the first company to achieve this mark. At the end of 2006, Wall-Mart had around 2 million employees, 179 million customers a year and 6775 stores all across the globe (CIO, 2006).
Wall- mart has been known to provide the best services to its customers at a very low price although the big player applies pressure on the suppliers to give them every day low prices. Due to this low pricing strategy of wall mart, it has hardly any competitor in the merchandise and groceries category. The low price strategy has led to the lay off of various employees and close of US plants in order to outsource to other countries. Wal-Mart is known for continuous improvement in its ability to handle, move, and track merchandise and expects its suppliers to do the same. Wal-Mart has been forcing its suppliers to redesign everything from packaging to computer systems and was itself decided the price that it wants to pay to the suppliers for its product.
Wal-Mart is U.S.A.’s biggest seller of DVDs, diamonds, groceries, toys, guns, CDs, apparel, dog food, detergent, jewellery, sporting goods, videogames, socks, bedding, and largest film
developer, optician, private truck fleet operator, energy consumer, and real estate developer
(Fortune, 2003). The main target customers of wall- mart are the people who want to pay low prices for their items and this is what its winning strategy is. Wall- mart’s revenue has been forecasted ...