Case Outline of Walmart

Case Outline of Wal-Mart

I. Problem: The main problem facing Wal-Mart is that, Wal-Mart needs a three-year strategic plan to develop further international expansion in Europe and more other countries, improve the growth of internet retailing and create private-label products in nationwide.

II. Strategic Considerations

A. Industry Analysis

1. History/Learning Curve

a) In 1945, Sam Walton opened his first Ben Franklin franchise in Newport, Arkansas.

b) When he operated his 16 stores, he realized that supermarkets and discounters were developing.

c) After the refusal of the people in top management of Ben Franklin, Sam Walton began operating his own discount stores with his bother Bud Walton in Bentonville and Rogers, Arkansas. They also started up a new large-box discount retail industry from then on.

d) They opened the first discount department store which was called Wal-Mart in November, 1962. The company went public in 1970 and sales began to increase rapidly.

e) The company of Target, Venture and Kmart stepped into the large-box industry when they saw the growth of Wal-Mart.

f) Wal-Mart and Target became the leading company in large-box discount retail industry, and both of them were in Fortune 500.

2. Key Segments and Trends

a) They developed more and more chain stores in towns and rural cities just like a neighborhood.

b) They had own distribution centers to deliver goods to stores. Also, they linked with lots of manufacturers by using more highly technology information systems.

c) They provided