Recommendations of Wal-Marts Supply Chain Management Practices Case Analysis

Home >> Ibs Center For Management Research >> Wal-Marts Supply Chain Management Practices >> Recommendations

Recommendations of Wal-Marts Supply Chain Management Practices Case Study Help

On the basis of above internal and external analysis of the business along with the examination of numerous options, the company is advised to consider alternative 3. As alternative 3 would permit the company to expand in worldwide markets without any decrease in its regional profits and any degeneration of its market position. The company could pursue alternative 1 which would allow the business to focus on potential global markets rather than the regional markets however as the business is extremely reliant on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the significant decline in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Wal-Marts Supply Chain Management Practices Case Solution Stores

Expansion towards global markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a good option for increasing the worldwide presence of the company. Nevertheless, the closing of domestic shops might highly impact the revenues of the firm as above 90% of its stores are located locally and closing those shops would eventually decrease the earnings of the company. The business has a long term market position in US which can not be generated soon in the brand-new markets. The option would help the business to broaden in international markets along with the elimination of problems raised in its regional markets related to its diversity. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Increase in earnings from global markets.
• Elimination of concerns connected to variety.
• Income diversity.
• Step towards being a strong global brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competition.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Wal-Marts Supply Chain Management Practices Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might posture an extreme hazard to the market share of business. In this circumstance the business could consider introducing Click and Recommendations of Wal-Marts Supply Chain Management Practices Case Solution shops. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Incomes
• Low Operating Expense
• Easy new market entryway

Cons:

• Danger to the marketplace position
• Elimination of brand Individuality
• Removal of the fantastic store experience.
• Threat of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another option that the company might consider, is to broaden towards the global markets without closing its domestic shops that contributes to the huge part of revenues of the company. The benefits and drawbacks related to Alternative 3 are provided below;

Pros:

• Reducing competition threat
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Exploration of brand-new worldwide markets.
• Increase in revenue from worldwide markets.
• Earnings diversity.
• Action towards being a strong international brand name.

Cons:

• Continuation of issues associated with variety.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.