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

Beginning in the 1990s, Wal-Mart seeks to maintain its rapid growth through investments outside the United States. Wal-Mart has chosen to enter other countries through the purchase of existing retailers. This process creates a new set of problems as the existing network have their own corporate culture and operating procedures. Wal-Mart has gone through some surprising defeats. In 2000, Wal-Mart launched a chain of what he called the "Neighborhood Markets", restricting the sale of food. Meanwhile, its Latin American acquisitions stores only 4,000 square feet. In 2010, Wal-Mart announced a strategy to create a large network of mini-Supercentres, each of some 40,000 to 60,000 square meters, which will be located within the city. Some of the new smaller stores will focus on the local ethnic groups. Hispanic neighborhoods have been targeted for this paradigm. In addition to the need to change their inventory levels, and rely on the parking lot of the building, rather than large parking lots, Wal-Mart has faced strong opposition from the trade unions. Meanwhile, Wal-Mart is using its new small-format stores in China. Wal-Mart has also experimented with online grocery sales with home delivery. Wal-Mart continues to cut costs by consolidating its global procurement, the transition to a global supply chain with the elimination of many wholesalers. At the same time, Wal-Mart takes a dramatic position in convincing suppliers to its "green" practices, conducting audits of suppliers and refuse to buy from those who are not able to meet the new environmental standards. "Hide
by David W. Conklin, Daniel Cadieux Source: Richard Ivey School of Business Foundation 4 pages. Publication date: April 20, 2011. Prod. #: W11056-PDF-ENG

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