Principle of strategic marketing management
Wal-Mart Case Study
The effectiveness of operation and strategy are not distinguished exactly which leads to problem’s root. The management tools and techniques, time based competition, partnering, bench marking of total quality management, outsourcing, change in management, re-engineering were resulted from the productivity, speed and quality teams. The strategy management is considered as the secret of success by any of the company. The survival of a company becomes problematic without proper planning and strategy which is been decided based on many theories and many major corporate companies are thankful to the proper strategic planning. Many industries are also introducing new outlets in the retail industry.
Entry of Wal-Mart into Retail Industry:
The sustainability of a strategic decision is considered by many organizations that differentiate them from their competitors. The decisions can be changed to strategic if and only if there is the presence of innovation and having the advantage of sustainability in the results which was given by Porter. Porter also stated that the operational effectiveness and strategy combination is much essential to obtain superior performance and is the main goal of any organization.
Wal-Mart opened up many other stores that functioned successfully where the other company stores were a failure and were filed bankruptcy. The strategic decisions were made based on the five forces model of Porter. Wal-Mart was constantly getting hold of the other small retail shops for its expansion but always giving a stiff competition to others like Tesco, Target. Still Wal-Mart remained as a World’s biggest retail industry.
Key Components of Wal-Mart Business Model:
The economical revenue of Wal-Mart in the retailing industry is $244.52 billion leading in the world’s corporation. The Wal-Mart chain key components are those that offer the cheap prices than those of competitors including the infrastructure that represent a pleasure environment to work. Many visits are made by the company managements for managing its human resources. The compensation of a manger links to the store’s profit that is operated by him.
The retailing industry in America is being dominated by Wal-Mart because of the number of factors that are mysterious and its effectiveness lasts long making the rivals not let to know the details of its weaknesses. The domination of retail market is maintained by Wal-Mart using the strategic decisions to formulate by expanding its growth at US, widespread name. The satisfaction of customer related to its brand name and branching its new retail shops in the market.