Walmart Case Study Example | Topics and Well Written Essays - 500 words

Walmart - Case Study ExampleWal-Mart has not been as successful in the e-commerce marketplace as other online vendors such as EBay and Amazon. A third weakness of Wal-Mart is its high operational be including having the largest private workforce in the world. During the last two fiscal years the companys operating expenses increased by 2.7% and 1.7% respectively (Walmartstores, 2011). The company is also susceptible to a variety of risks including foreign currency, lawsuits, and prejudice of assets.I think that the neighborhood store put is at conflict with the companys larger-than-life strategy of offering its customers the lowest prices in the retail market. The securely has always place high stress on running an efficient operation without any unnecessary added costs. The concept of the neighborhood store format goes against Wal-Marts strategy of standardizing its stores in the United States. The firm is able to lower its infrastructure costs by using a similar format in a ll its stores. Economies of scales are achieved at Wal-Mart by acquire goods in bulk. Economies of scale are a key advantage for a business because it lowers a firms cost per unit (Tutor2u, 2012). Wal-Mart has been able to differentiate its product offering by providing its customers with a higher(prenominal) variety of items at lower prices. The neighborhood store format threatens Wal-Marts corporate culture and its longsighted term success in the retail industry. The retail industry generated revenues in the United States of $4,691 billion in 2011 (Plunkettresearchonline, 2012).Wal-Mart should expect a variety of challenges in its international expansion efforts. The first challenge the company faces is universe able to carry over its US brand value into the international markets. Wal-Mart has gained its brand value done the accumulative efforts of its founder, managers and employees for over 50 years. Once the company begined to operate outside the United States the company had to start from scratch by