How Wal-Mart Done the Transformation Strategically

9 September 2017

Executive summery In this report had analyst How Wall-Mart done the transformation strategically to win the market in situation of financial crisis? The fanatical crisis becomes huge threat to all organizations in the world. Because it becomes challenge to Wall-Mart also. Through this report I had highlight the causes for problem happens and rectify the problems through measurements with statistical data. Then this report had explained what are the steps that taken by Wall-Mart to achieve their vision.

So Wall- Mart Implement the strategic plan call Project Impact is based on three strategic initiatives that will improve the benefits to the customer. The three initiatives are; Save Money, Live Better; Win, Play, Show; and Fast, Friendly, Clean. Then finally conclusion come up with suggestions to increase the Wall-Mart productivity, efficiency, effectiveness an their brand image to win the market. About Wall-Mart Wall-Mart helps people around the world save money and live better anytime and anywhere in retail stores, online and through their mobile devices.

How Wal-Mart Done the Transformation Strategically Essay Example

Each week, more than 245 million customers and members visit our 10,900 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. Wall-Mart has become known for their always low prices because of their effective cost leadership strategy. However, along with this success has come much criticism on the value of their merchandise and the ethics behind their strategies. The following will explore how they operate and Just how sustainable Wall-Mart’s strategies are for the future. Problem question “How Wall-Mart done the transformation strategically to win the market in situation of financial crisis. This case analysis on how Wall-Mart faces to the US financial crisis. The fanatical crisis becomes huge threat to all organizations in the world. Because it becomes challenge to Wall-Mart also. So Wall-Mart needs a big change to win the market in this situation. Because Wall-Mart selling end consumer products. They are doing retail business with people. So crisis become more and more sensitive with the growth strategy of Wall-Mart. Despite the financial crisis in America, Wall-Mart stores continue to do well and even exceed sales expectations.

As business slows down and more people are laid off from work, they will continue to shop but do so with a tighter hold on their purse strings. Wall-Mart is clearly providing a service for the low income ND frugal minded shopper by keeping prices down. Specifics * Financial Crisis The financial crisis of 2007-2008, also known as the Global Financial Crisis and 2008 financial crisis, is considered by many economists. It resulted in the threat of total collapse tot large financial institutions, the bailout tot banks by national governments, and downturns in stock markets around the world.

In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of U. S. Dollars, and a downturn in economic activity leading to the 2008-2012 global recession and contributing to the European sovereign-debt crisis. * Consumer purchasing power Consumer buying power is the behavior of a consumer in regards to how he spends money on goods or services.

Consumer buying power does not remain static year after year. Changes in the value of the currency, inflation of product prices and average wages all factor into the consumer buying power figures. Higher prices might mean that buying power shifts to necessities such as clothing and housing and away from entertainment. Conversely, if it is found that average wages are increasing and the prices are remaining low, then buying power can shift toward industries that fulfill the wants of the consumers as well as the needs.

So cause of that consumer’s purchasing quantity of goods depends on individual purchasing power of customer. * Less Efficiency in store management As customers has no enough time to spend shopping. They like well organized and convenience place for shopping in minimum expend of time. Measurable * Inflation rate: In simple language, inflation meaner rising prices and it shows the increase in cost of living. In economics, inflation is explained as rise in the general level of prices of goods and services in an economy over a period of time. High inflation distorts consumer behavior.

Because of the fear of price increases, people tend to purchase their requirements in advance as much as possible * By taking how many average time spending by customers inside the Wall-Mart. This will show the shopping convenience of our shells arrangement and goods storing to customer. And it should analyze with the value and the quantity of consumers purchasing basket. * Take the research on most consumable products f Wall-Mart customers and how much time spending to buy that products. * Monitor the inventory control data to measure inventory movement of goods in store.

Literature review SOOT analysis: is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a Wall-Mart. Porter’s five forces model Porter five forces analysis is a framework for industry analysis and business strategy development. It draws upon industrial organization economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Alternatives Improve the store efficiency of inside of the store. Wall-Mart wants to improve the customer’s in-store experience as well as becoming more efficient in and out of each store. Merchandising with back end logistics. * Financial crisis * Low purchasing power cause for reduce the consumption ability of people. * Exchange rate fluctuation is affect when working as multinational company as a globally. * Inflation * Atmosphere – changing the interior designing and arrangements for easier shopping experience,” Implementation * Implement the strategic plan call Project Impact: The Company is in the beginning takes of a massive store and strategy remodeling effort, which it has dubbed Project Impact.

One goal of Project Impact is cleaner, less cluttered stores that will improve the shopping experience. Another is friendlier customer service. Wall-Mart is embarking on an ambitious U. S. Store remodel program as part of its three-year strategic plan, dubbed “Project Impact” Save Money. Live Better. (A marketing message directed at consumers) – Win. Play. Show. (An organizing principle for decisions about merchandising and assortments) – Fast. Friendly. Clean. (A direction or the in-store experience) * Change the promotional strategy. Change Logo Change colors * Save Money. Live Better.

The goal is to create a clear value proposition within a integrated communication strategy to achieve a high level of consumer trust. Outline of the components needed to achieve this goal: – Consistent In-Store Brand Message – Standardized printing specifications for suppliers – Incorporate themed graphics on displays / less national branding ratio – Preferred suppliers for themed graphics and display vehicles – Common message that addresses consumers needs in Wealth ; Health Improve the Merchandise Flow – Wall-Mart has a merchandise replenishment cycle of no more than 48 hours.

Wall-Mart has adopted efficient processes such as cross-docking which as reduced operating costs, increased throughput, reduces inventory levels and eliminates unnecessary handling and storage of product. * Supply Chain Transformation – Wall-Mart are working to improve efficiencies in the supply chain and especially in transportation. * Price Leadership – The Company is well known for its “Every Day Low Pricing”, but Wall-Mart is aiming to give the consumer greater value for each product category.

Integrated Brand Communication – Although Wall-Mart is looking to reduce the overall number of suppliers and products. This initiative sees Wall-Mart optimizing the products in each of its stores. Reducing the number of products, and perhaps reducing the number of overall suppliers, Wall-Mart can encourage suppliers to reduce prices. * Win. Play. Snow. The goal is to create greater “clarity’, reduce inventory and increase sales growth on the shelf and in the store.

Outline of the components needed to achieve this goal: Win – Wall-Mart to pursue aggressively to Gain Share Ђ Play – Opportunities to Capture Growth & items where Growth & Profit can be balanced Show – Items that must be maintained to retain one-stop shop. Ski’s and suppliers will be rationalized to drive efficiency * Fast. Friendly. Clean. The goal is to create a faster, cleaner, and friendlier shopping environment to generate increased trips and cross-department shopping.

Outline of the components needed to achieve this goal: – Improve Sightlines and Navigation – More overhead signage – Less Inventory – Lower Shelves – Wider Aisles – Removal of Pallets in Action Alley To Develop Overall Convenience – Calculated department positioning – Faster, more approachable check-outs – Educational Signage – Singular Price Points – Fewer SKI’S * To Enhance Atmosphere – wall-Mart TV – Focus on “Unbeatable” and “Rollback” Savings – Softer Store Color Tones * Project Impact stores reshape Action Alley, the aisles where promotional items were pulled off the shelves and prominently displayed for shoppers.

Those stacks both crowded the aisles and cut off sight lines. Now, the aisles are all clear, and you can see most sections of the store from any vantage point. Conclusion Wall-Mart needs a big change to win the market in this situation. Because Wall-Mart selling end consumer products. They are doing retail business with people. So crisis become more and more sensitive with the growth strategy of Wall-Mart.

To face that challenge Wall-Mart had Implement the strategic plan call Project Impact: The Company is in the beginning stages of a massive store and strategy remodeling effort, which it has dubbed Project Impact. Wall-Mart had planned to transform the organization that they gain the experience from financial crisis. So transforming the organization within the crisis period is a big challenge. Because the project impact was very huge investment at that time. They change their marketing message to Save Money.

Live Better to create a clear value proposition to achieve a high level of consumer trust. And they use Win. Play. Snow strategy to reduce inventory and increase sales growth on the shelf and in the store. The Wall-Mart shopping true online is also reduce the customer traffic and help to open Wall-Mart shopping roars of the day. According to my think online shopping is good for normal goods. Through inline we cannot touch and feel the product physically. So online shopping is not good for product like cloths. I propose the RIFF technology for store management at Wall-Mart.

One such technology is radio-frequency identification, or RIFF, which transfers data stored on tags on a product or other object, facilitating identification and tracking. Wall-Mart can be use RIFF technology for about a decade and cites numerous benefits, including more efficient inventory management. The company can introduce RIFF to track pallets of merchandise traveling along its supply chain, including at warehouses. Then its help to cutting the volume of excess inventory in Wall-Mart’s massive supply chain and slashing out-of-stock occurrences.

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