Transformations of Wal-Mart: Experimenting with New Retail Paradigms Case Solution

In early 1990, Wal-Mart has tried to maintain its rapid growth by investing outside the United States. Wal-Mart has chosen to enter other countries by buying existing chains. This process creates a new set of challenges due to the existing channels had their own methods of corporate culture and operations. Wal-Mart has seen several surprising defeats. In 2000, Wal-Mart launched a series of what he called “neighborhood markets,” is limited to selling groceries. Meanwhile, acquisitions in Latin America include a 4,000 square foot store. In 2010, Wal-Mart announced a strategy to create a large chain of mini-super-centers, each approximately 40,000 to 60,000 square feet, to be located in cities. Some of the new smaller stores would focus on local ethnic groups. Hispanic neighborhoods were an obvious target for this paradigm. In addition to the need to change their inventory levels, and are based on the storey car parks rather than large parking lots, Wal-Mart has faced strong opposition from unions. Meanwhile, Wal-Mart has used its new small format stores in China. Wal-Mart has also experimented with sales of home delivery of groceries online. Wal-Mart continues to reduce costs by consolidating its global purchasing, switching to the more global supply chains to eliminate many wholesalers. At the same time, Wal-Mart has been taking a spectacular position convincing suppliers to adopt “green” practices, audits of its suppliers and refuses to buy from those who could not keep up with the new environmental standards.
David W. Conklin,
Danielle Cadieux
Source: Ivey Publishing
4 pages.
Date Posted: April 20, 2011. Prod #: W11056-PDF-ENG
Transformations Wal-Mart: Experimenting with new paradigms retail box Solution

Transformations of Wal-Mart: Experimenting with New Retail Paradigms Case Solution
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