Walmart Questions (Day 1)
How would you characterize the industry structure of discount retailing? -
CORRECT ANSWER-- low margins, bare bones, self service
How favorable is the structure of this industry? Explain. - CORRECT
ANSWER-Favorable
- Can operate on a bare bones level, customer self service as they are more
informed. No need to to invest in a high quality atmosphere
- Do not need to spend on employee training (can pay lower wages)
Identify Walmart's early strategy and explain how/why it enabled Wal-Mart to be
so successful in discount retailing - CORRECT ANSWER-Walmart Strategy
- target areas of low competition (sm rural towns) ... customers can "shop at
home"
- customer loyalty and tech advances allowed walmart to identify, monitor, track
and trait
- tech superiority
- Low prices lead to high volumes of sales which leads to lots of data
- Sam Walton's leadership style
-Buy American initiatives
-Private label brands lead to higher margins
-built loyalty and created a walmart culture that attracted employees and retained
talent
Historically, what have been Wal-Mart's key sources of competitive advantage? -
CORRECT ANSWER-- Sam Walton's vision/leadership
- Low prices, refunds polices
- Tech superiority (data)
- Lean operations, low cost on operations and distribution
-Decentralized management
How has Walmart operated differently from its rivals? - CORRECT ANSWER--
Distribution efficiency (lower costs on distribution). Cross docking
- Lower advertising expenses
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