low cost strategy the case of walmart

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INTRODUCTION
In the business process of each business, marketing is an important factor
determining the business efficiency of that business. Businesses do not apply a single
marketing strategy in the marketing process. Marketing mix strategies are often used as
a combination of single marketing strategies in advertising and sales. However, there
are well-known brands that are successful in brand positioning thanks to an outstanding
single marketing strategy and so is Walmart. Like other businesses, Walmart uses
marketing mix in the marketing process, but the point of making the difference of
Walmart compared to other retail groups in the world is because Walmart turns itself
into a pricing leadership retailer in the World. (Gregory, 2010)
Pricing competitive strategies deals with the development of attributes that
characterise a company and differentiate the value it creates and offers in comparison
to its competitors the main idea about how the firm can best compete in the market.
However competition in the retail sector has been increasing for years, the
importance of developing an effective competitive strategy appears to be increasing
constantly. Given that retailing has become a mature industry with overcapacity, high
concentration and, in many cases, price-driven marketing strategies which have led to
rather homogeneous stores, differentiation from competitors through positioning seems
increasingly necessary, competitive strategy can be understood as the activities a
company undertakes to gain a sustainable competitive advantage in a particular
industry. That is also the reason why our team made research “ Low cost strategy : The
case of Walmart” more clearly assess the effectiveness of walmart's low price strategy
on its own performance, thereby giving recommendations for enterprises to this
strategy more effective at the present.
This paper including three chapters:


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• Chapter 1: Overview of marketing strategy and low cost strategy.

This chapter provides basic definitions of marketing, marketing strategies and
low price strategy.
• Chapter 2: Analysis for low cost strategy in case of Walmart
This chapter presents information about Walmart's low-price campaign, Walmart's
way of applying this strategy and how to Walmart cut down production costs.
• Chapter 3: Solutions.
This chapter presents General assessment of advantages and disavantages of low
cost strategy to Walmart and give out some recommendations.


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CHAPTER 1: OVERVIEW OF MARKETING STRATEGIES AND LOW COST
STRATEGY
1.1. Definition of marketing strategy
Marketing: Marketing refers to activities undertaken by a company to promote
the buying or selling of a product or service. Marketing includes advertising, selling,
and delivering products to consumers or other businesses.
Marketing strategy: A marketing strategy is a business's overall game plan for
reaching people and turning them into customers of the product or service that the
business provides. The marketing strategy of a company contains the company’s value
proposition, key marketing messages, information on the target customer and other
high-level elements. (Adam Baron, 2019)
The marketing strategy informs the marketing plan, which is a document that lays
out the types and timing of marketing activities. A company’s marketing strategy
should have a longer lifespan than any individual marketing plan as the strategy is
where the value proposition and the key elements of a company’s brand reside. These
things ideally do not shift very much over time.
1.2. Marketing Mix and classification
Definition: The marketing mix refers to the set of actions that a company uses to

promote its brand or product in the market. The 4Ps which make up a typical marketing
mix include Price, Product, Promotion and Place. However, nowadays, the marketing
mix increasingly includes several other Ps which modify and improve the system of
4Ps to become 7Ps. All the elements of the marketing mix influence each other. They
make up the business plan for a company and handled right, can give it great success.
The marketing mix needs a lot of understanding, market research and consultation with
several people, from users to trade to manufacturing and several others. (Marketing
mix, 2018)
Classification:
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4Ps include Price, Product, Place and Promotion
• Price: refers to the value that is put for a product. It depends on costs of production,
segment targeted, ability of the market to pay, supply - demand and a host of other
direct and indirect factors. There can be several types of pricing strategies, each tied in
with an overall business plan. Pricing can also be used a demarcation, to differentiate
and enhance the image of a product.
• Product: refers to the item actually being sold. The product must deliver a minimum
level of performance; otherwise even the best work on the other elements of the
marketing mix won't do any good.
• Place: refers to the point of sale. In every industry, catching the eye of the consumer
and making it easy for her to buy it is the main aim of a good distribution or 'place'
strategy. Retailers pay a premium for the right location.
• Promotion: this refers to all the activities undertaken to make the product or service
known to the user and trade. This can include advertising, word of mouth, press
reports, incentives, commissions and awards to the trade. It can also include consumer
schemes, direct marketing, contests and prizes.
As well as the standard four afore-mentioning Ps, services marketing adds three

elements which are People, Process and Physical Evidence, totaling seven and known
together as the extended marketing mix.

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• People: Any person coming into contact with customers can have an impact on
overall satisfaction. Whether as part of a supporting service to a product or involved in
a total service, people are particularly important because, in the customer's eyes, they
are generally inseparable from the total service. As a result of this, they must be
appropriately trained, well-motivated and the right type of person. Fellow customers
are also sometimes referred to under 'people', as they too can affect the customer's
service experience.
• Process: This is the process involved in providing a service and the behavior of
people, which can be crucial to customer satisfaction.
• Physical evidence: Unlike a product, a service cannot be experienced before it is
delivered, which makes it intangible. This, therefore, means that potential customers
could perceive greater risk when deciding whether or not to use a service. To reduce
the feeling of risk, thus improving the chance for success, it is often vital to offer
potential customers the chance to see what a service would be like. This is done by
providing physical evidence, such as case studies, or testimonials.
1.3. The concept of Low cost strategy
Low cost strategy is a pricing strategy in which a company offers a relatively low
price to stimulate demand and gain market share. It is one of three generic marketing
strategies that can be adopted by any company, and is usually employed where the
product has few or no competitive advantage or where economies of scale are
achievable with higher production volumes.
This strategy is suitable for large-scale business units that are able to reduce the
cost of operating processes that allow businesses to overcome competitors by

producing goods and services at low cost.
Enterprises with low cost strategies choose low product differentiation because
differentiation has a high cost so if the enterprise spends resources focusing on making
a difference to the product, the cost of production export will increase. Enterprises
advocating to achieve differences in products are not higher than enterprises according
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to differentiated strategies but must achieve low cost. Often businesses only make a
difference when customers need it.
Enterprises with low cost strategy do not pay attention to market segments and
often provide products to average customers. The reason businesses follow this low
cost strategy is because it is costly to meet different needs in different markets.
Although no customer is completely satisfied with the products of the enterprise, the
enterprise still attracts customers because it sets prices lower than its competitors.
To achieve this strategy, the goal of enterprises under low-cost strategy is
necessarily to develop capabilities that allow businesses to increase efficiency and
reduce costs compared to competitors. Developing different capacities in production
and raw material management is a core issue to achieve this goal. Businesses pursuing
low-cost strategies try to quickly move down to the bottom of the experience curve to
reduce production costs. In order to get low-cost businesses need to develop skills in
flexible production and use effective material management skills.
Besides, enterprises pursuing low-cost strategy must also focus on other functions
to create different capacity of enterprises to meet the requirements of production
management and materials. For example, sales functions can develop capabilities,
attract more and stabilize customer orders. It then allows production to be more
operational and thus economies of scale and cost reduction. Human resource
management functions can focus on training programs and remuneration systems to
reduce costs by improving labor productivity, and research and development functions

can focus on product improvement to reduce production costs.
1.4. The pros and cons of Low cost strategy
Advantages:

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• Because of the low cost, businesses can bid lower than their competitors but still
have the same level of profits as them. If businesses in the industry place the same
price for their products, low-cost businesses will earn higher profits.
• If industry competition increases and businesses start to compete on prices, low-cost
businesses will be able to withstand better competition than others.
• When alternative products appear, businesses can be more flexible in competition by
reducing costs
Enterprises with low costs create barriers to limit new firms to the industry.
Disadvantages:
• Businesses need require great capital if they want to start Low cost strategy.
• Enterprises can encounter difficulties when there is a change in technology.
• The risk of being imitated can happen.
1.5. The enterprises that use Low cost strategy
Nowadays, there are a lot of both Vietnam and foreign businesses using
effectively Low cost strategy which has helped them to gain big revenue, raise their
competitive capacity in worldwide as well as domestic market. They are Walmart,
Vinamilk, BigC, Viettel, Jetstar Pacific, Dell, Toyota, Honda and so on.

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CHAPTER 2: ANALYSIS FOR LOW COST STRATEGY IN CASE OF
WALMART
2.1. Company overview
2.1.1. Introduction
Walmart is an American multinational retail corporation that operates a chain of
hypermarkets, discount department stores, and grocery stores. Headquartered in
Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and
incorporated on October 31, 1969.
Sam Walton was born in 1918 in Kingfisher, Oklahoma. In 1945, Sam and his
wife moved to Newport, Arkansas. During this time, Sam gained early retail
experience, eventually operating his own variety store. Inspired by the early success of
his dime store, and driven to bring even greater opportunity and value to his customers,
Sam opened the first Walmart in 1962 at the age of 44 in Rogers, Arkansas.
As of April 30, 2019, Walmart has 11,368 stores and clubs in 27 countries,
operating under 55 different names. It has wholly owned operations in Argentina,
Chile, Canada, and South Africa.
Walmart is the world's largest company by revenue - over 500 billion USD,
according to Fortune Global list in 2018 - as well as the largest private employer in the
world with 2.2 million employees. It is a publicly traded family-owned business, as the
company is controlled by the Walton family. Sam Walton's heirs own over 50 percent
of Walmart through their holding company, Walton Enterprises, and through their
individual holdings. Walmart was the largest U.S. grocery retailer in 2019, and 65
percent of Walmart's 510.329 billion USD sales came from U.S. operations.
Walmart's investments outside North America have seen mixed results: its
operations and subsidiaries in the United Kingdom, South America, and China are
highly successful, whereas its ventures in Germany and South Korea failed.
(Wikipedia, 2019)
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Figure 2-1. Walmart’s financial figures from 2010 – 2018

Total Assets
170,407
180,782
193,406
203,105
204,751
203,490
199,581
198,825
204,522
Source: Wikipedia
2.1.2. Operating divisions
Walmart's operations are organized into four divisions: Walmart U.S., Walmart
International, Sam's Club and Global e-Commerce. The company offers various retail
formats

throughout

these

divisions,

including

supercenters,

supermarkets,

hypermarkets, warehouse clubs, cash-and-carry stores, home improvement, specialty
electronics, restaurants, apparel stores, drugstores, convenience stores, and digital
retail.

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• Walmart U.S.
Walmart U.S. is the company's largest division, accounting for 331.666 billion
USD, or 65 percent of total sales, for fiscal 2019. It consists of three retail formats that
have become commonplace in the United States: Supercenters, Discount Stores,
Neighborhood Markets, and other small formats. The discount stores sell a variety of
mostly non-grocery products, though emphasis has now shifted towards supercenters,
which include more groceries. As of April 30, 2019, there are a total of 4,763 Walmart
U.S. stores.
• Walmart International
As of April 30, 2019, Walmart's international operations comprised 6,006 stores
and 800,000 workers in 26 countries outside the United States. There are wholly owned
operations in Argentina, Brazil, Canada, and the UK. With 2.2 million employees
worldwide, the company is the largest private employer in the U.S. and Mexico, and
one of the largest in Canada. In fiscal 2019 Walmart's international division sales were
120.824 billion USD, or 23.7 percent of total sales.
• Sam's Club
Sam's Club is a chain of warehouse clubs that sell groceries and general
merchandise, often in bulk. The first Sam's Club was opened by Walmart, Inc. in 1983
in Midwest City, Oklahoma under the name "Sam's Wholesale Club". The chain was

named after its founder Sam Walton. As of April 30, 2019, Sam's Club operated 599
membership warehouse clubs and accounted for 11.3% of Walmart's revenue at 57.839
billion USD in fiscal year 2019.
• Global Ecommerce
Based in San Bruno, California, Walmart's Global eCommerce division provides
online retailing for Walmart, Sam's Club, Asda, and all other international brands.
There are several locations in the United States in California and Oregon: San Bruno,
Sunnyvale, Brisbane, and Portland. Locations outside of the United States include
Shanghai (China), Leeds (United Kingdom), and Bangalore (India).
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2.1.3. Customer Base
Walmart customers cite low prices as the most important reason for shopping
there. The average U.S. Walmart customer's income is below the national average.
In 2006, Walmart took steps to expand its U.S customer base, it unveiled a new
slogan: "Saving people money so they can live better lives". This reflects the three
main groups into which Walmart categorizes its 200 million customers:
• Brand aspirationals: people with low incomes who are obsessed with big name
brands
• Price-sensitive affluents: wealthier shoppers who love deals
• Value-price shoppers: people who like low prices and cannot afford much more.
• Walmart has also made steps to appeal to more liberal customers.
2.1.4. Competitors
In North America, Walmart's primary competitors include grocery stores and
department stores like Aldi, Kmart, Kroger, Sobeys and Giant Tiger. Competitors of
Walmart's Sam's Club division are Costco and the smaller BJ's Wholesale Club chain.
Walmart's move into the grocery business in the late 1990s set it against major
supermarket chains in both the United States and Canada. Several smaller retailers,

primarily dollar stores, such as Family Dollar and Dollar General, have been able to
find a small niche market and compete successfully against Walmart.
Walmart also had to face fierce competition in some foreign markets. For
example, in Germany it had captured just 2 percent of the German food market
following its entry into the market in 1997 and remained "a secondary player" behind
Aldi with 19 percent. Walmart continues to do well in the UK, where its Asda
subsidiary is the second-largest retailer.
In May 2006, after entering the South Korean market in 1998, Walmart sold all 16
of its South Korean outlets to a local retailer, for US$882 million. It was re-branded the
Walmart as E-mart store.
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Walmart struggled to export its brand elsewhere as it rigidly tried to reproduce its
model overseas. In China, Walmart hopes to succeed by adapting and doing things
preferable to Chinese citizens.
2.2. Marketing of Walmart from 1969
From very beginning, Walmart concentrated on one important policy – low
pricing and managed to keep until the moment.
2.2.1. Economic Potential
1969, The company officially incorporates as Wal-Mart Stores, Inc.
1970, Walmart becomes a publicly traded company. The first stock is sold at
$16.50 per share.
Figure 2-2. Walmart’s Sales and Number of stores
Source: Annual report of Walmart 1972
In 1969, Walmart’s sale was 21.365.281 USD with 27 stores and keep increasing
to 78.014.164 USD in 1972 with 51 stores.
In 1972, 300,000 shares of Wal-mart were listed on the New York Stock
Exchange for $15 but sold $16.50 per share. At that time, the Walton family owned

only 61 percent of the shares, but Wal-mart was able to cover all debts and from then
on, no longer had to borrow anywhere. By raising capital in the primary and secondary
markets, Wal-mart has quickly solved debt issues, expanding the market towards
building the world's leading company. (Walmart, Annual report for Walmart stores inc,
1972)
This result was thanked to the right strategy of Walmart, they aim to the what the
customers want. In 1992, Sam Walton declared the overview of the company with the
core values and core purposes make the based orientation for the Walmart’s action:
“The secret of successful retailing is to give your customers what they want. And
really, if you think about it from your point of view as a customer, you want everything:
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a wide assortment of good-quality merchandise; the lowest possible prices; guaranteed
satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free
parking; a pleasant shopping experience. To become the worldwide leader in retailing,
our first responsibility is to provide all consumers with the best products and services
with guaranteed satisfaction under one roof.”
And the mission of Walmart in 1992 is:
“If we work together, we’ll lower the cost of living for everyone…we’ll give the
world an opportunity to see what it’s like to save and have a better life.”- Sam Walton
Even before the Walmart was established, Sam Walton’s orientation is to open the
discount stores, proof is his previous store’s name is “Five and Dime”. And in 1970s
was the time that the discount stores were popular, he had travel whole country and
learn many things, he caught the wave of the discount stores and be the most successful
man. (Walmart, Our History, n.d.)
2.2.2. Pricing Strategy of Walmart
Everyday Low Price (EDLP), this is the strategy Walmart used in very first days,
a strategy that offers low prices to customers throughout the year instead of offering

these low prices only on sales events. This strategy increases both sales and customer
loyalty.
Right in the notice board at the way in of the Walmart, the words “Discount” and
“Sell for Less” were used to tell that the main different of Walmart stores from the
others is the price, their price is always lower and is the best choice for the customers.
And in the TV commercials, the thing Walmart emphasized was always price. Other
stores just decreased their product’s price on the sale events, but Walmart said they
offered the low price everyday, it was the smart way to attract the consumers. For
example, you bought a shirt in another store at $20 but you can buy the same shirt in
Walmart with $18 or lower. Wal-Mart's products were usually priced 20% lower than
those of its competitors. Walton's pricing strategy led to increased loyalty from priceconscious rural customers. It helped the company to generate more profits due to larger
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volumes. Explaining his pricing strategy, Walton said, "By cutting your price, you can
boost your sales to a point where you earn far more at the cheaper retail price than you
would have by selling the item at the higher price. In retailer language, you can lower
your markup but earn more because of the increased volume. (Jayasy, 2017)
2.2.3. Cutting down pricing methods
• Low Cost Leadership
To arrive at such consumer-friendly rates, Walmart focuses on the strategy of low
cost leadership. This strategy gives them a competitive advantage over their rivals. It
maintains a low cost of operation, and this enables Walmart to produce and sell goods
of competitive or even better quality, at lower costs than other retailers. Walmart
gradually increased its market share by striving to decrease its cost of operation, even
lower than other retail chains. It did so by offering high volumes of basic commodities,
and by limiting or cutting back on personalized service. It looks to innovate not by
focusing on new product development, but by concentrating extensively on process
improvement.

• Economies of Scale
Walmart benefits from the concept of economies of scale, which causes its
average production costs to dramatically fall, and output to increase. It does this by
purchasing materials in bulk from vendors by having long-term contracts in place.
Another factor is Walmart tries to obtain low interest rates from banks when it borrows
large sums of money. It also tries to reduce its marketing costs by distributing its
advertising costs over a wider output range. These factors are instrumental in reducing
their average production costs. Targeting the mass market with tried and tested
products has always been Walmart's strategy.
• Low Operation and Production Costs
Walmart maintains low operation and production costs by using standard and less
number of component parts. It tries to keep overhead expenses to a minimum by
offering low wages to workers and leasing sites in low-rent areas. Goods are
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manufactured in countries where labor is very cheap. To keep up with low operation
costs in every aspect of its business, it controls production costs, and limits costs
involved in outsourcing, distribution, advertising, and research and development.
• Effective Supply Chain Management
Walmart started the EDLP (Every Day Low Prices) approach. To make the most
out of this technique, Walmart also has a very effective supply chain management in
place, to ensure it keeps its prices low. It maintains a tight control over its logistics,
transport, and inbound supplies. Being a tough negotiator, it exerts a fair deal of
bargaining power over all its suppliers. It ensures that its suppliers maintain very low
production prices and produce items on a large-scale. This enables Walmart to buy bulk
quantities of the product at the lowest price possible.
• Cross-Docking
When it comes to transportation of goods, Walmart owns an extensive fleet of

trucks which ensures that all products are delivered to its stores through the network of
distribution channels in the least amount of time possible. By eliminating middlemen
and not depending on external transport supply chains, Walmart cut down heavily on
its business costs. Using the technique of cross-docking effectively, Walmart has
eliminated any inventory handling, storage, and warehousing costs, ensuring products
reach the distribution centers and from thereon, to its vast customer base at a faster
rate.
• Radio Frequency Identification Tags
RFID (Radio Frequency Identification Tag) tagging, an innovative use of
information management, helps Walmart keep an accurate and up-to-date record of its
inventory all over the country. Goods are tagged at the time of manufacture, and the
sale of goods is relayed to all its distribution centers and suppliers. This means that the
goods that are sold are replaced back on the shelf with new products within no time,
thanks to the exemplary use of information technology.

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With a low cost, high volume strategy, excellent store locations, and exceptional
use of economies of scale, Walmart continues to offer low prices on its goods. Little
wonder then, the retail giant is able to maintain its stronghold in the marketplace,
generating high returns and maintaining a loyal customer base. (Kale, 2017)
2.2.4. React from competitors & customers
• From competitors
Walmart has gained immense success from EDLP. However, not all of its
competitors followed suit and adopted the strategy. It is expensive for a retailer to
switch to EDLP and the retailer needs to maintain EDLP for a long time for the
customers to associate the brand with lower prices.
There are other retailers in the US, namely Kroger who offer goods at very low

prices. Kroger unveiled a “Restock Kroger” plan in October 2017 that focused on even
lower prices. The program seems to be successful with Kroger’s sales going up 4.5%.
Two German grocery chains, Aldi and Lidl are in the process of expansion in the
US market, with prices less than Walmart or Kroger. In September 2017, Kroger’s
prices were 31% higher than those of Aldi and Lidl, and Walmart’s prices were 5.3%
higher than the German chains.
Aldi and Lidl are able to offer low prices by limiting inventory to a selection of
few items. Whereas Walmart offers a wide range of products. Other cost-cutting
techniques include displaying items in shipping cartons to make restocking easier and
Lidl also requires customers to bring in their own grocery bags.

• From customers
Consumers can only be benefitted by the price wars as prices go down while
quality is not diminished much. EDLP is preferred by today’s shoppers who are less
frequent in shopping for groceries as they get low prices regardless of when they visit
the stores. Moreover, when Walmart marks the price of a product as $271, consumers
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get the feeling that the store has already reduced the price so much that they could not
offer a further discount of even $1.
Walmart has a presence in almost every market segment and a reach to a very
wide customer base. It certainly helps that there is a Walmart outlet within 15 miles of
90% of the American population.
And in the leaflets, advertising, TV commercials, Walmart always used the
images of customer, that make the customers feel respected. That is what Walmart did
best, they thought as customers to understand what they want and supply it. That’s why
they succeed.

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CHAPTER 3: SOLUTIONS
3.1. General assessment of The effect of Low cost strategy to company.
Price strategy is an important factor that determines success and competition with
a late postpartum product of any business in the market.
Price strategy is always the most expensive strategy. Normally, the price war is
only applied in 2 cases: (1) your product is a popular commodity, the market is
saturated and can only be identified by price (eg salt , sugar ...) or (2) large companies
use this strategy to destroy weaker and smaller competitors.
In the case of (1), it is mandatory to use the main competitive strategy price. In
case (2), the price is a cabinet blow and only applied in short terms, otherwise there
will be side effects and may lose the inherent position.
In most cases, the main competitive strategy used is differentiation (price
differentiation) and price is only a surface manifestation. There are many specific
examples that we can mistake as competitive prices, but actually below is a non-stop
differentiation effort. There are many specific examples to illustrate this point of view.
The overall advantage of this low-cost strategy is to reduce the pressure of all five
competitive forces in the model of five competitive forces of Michael Porter.
Businesses compete well and may even put pressure on competitors to compete in the
current industry thanks to low cost advantages.
Enterprises are subjected to lower pressure from customers, creating pressure on
suppliers on prices, payment conditions, delivery by large order sizes, creating barriers
to preventing the industry's entry. potential rivals thanks to economies of scale. Finally,
businesses can flexibly deal with alternative products by reducing product prices,
retaining customers, thus retaining market share.
Advantages:

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• Allowing enterprises to gain a high market share, thus gaining high profits, making
businesses accumulate experience quickly and have great market power
• Create customer loyalty, improve business image.
• Create major entry barriers, limit the participation of potential competitors.
• Enterprises can control the behavior of competitors, avoiding the price war.
• Enterprises resist the competitive pressure of customers on suppliers.
• Enterprises have conditions to invest more in production development and
distribution networks to create more advantages in price.
• Due to high profitability, enterprises have conditions to invest and nurture new
products.
Besides the above advantages, this strategy also exists: certain disadvantages.
Disadvantages:
• This strategy requires a lot of assets and activities that require a lot of investment.
• Competitive advantages are difficult to be protected for a long time due to cost
reduction methods that are easily copied and imitated by other businesses.
• This strategy is based on standardized products, which in turn will lead businesses to
a state of change, less flexibility and slow response to the market.
• Price competition will easily lead to a price war that makes every business suffer and
threaten the interests of the whole industry.
• It requires big investment when businesses find ways to exploit experience effects.
• To take advantage of economies of scale, enterprises need to mass produce, but an
important content of mass production is to standardize the process, standardize
products. The concept of normalization often comes with a lack of flexibility; rigid
while demand is a fluctuation.
Therefore, the disadvantage is that the production line is less flexible in response

to changing market demand, due to standardization of products and production
processes. In addition, this strategy is also likely to cause a price war when many
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businesses in the industry pursue this strategy. (Ưu và nhược điểm của chiến lược chi
phí thấp, 2019)
3.2. Recommended Solutions
• Continuous improvement of labor performance.
• Specialization of production.
• Quality improvement & product design: A huge cost reduction can be achieved by
redesigning the product.
• Exploiting the experience curve:
Production managers know that a person will do the job faster and make fewer
mistakes when he or she regularly does it. For example, with the same heart surgery,
the group of surgeons used to take eight hours to complete. After a while, when there is
a lot of experience, the same surgery can be done successfully in just five hours. This is
also evident in the production environment when managers and employees focus on
learning.
• Creating a supply chain cannot be defeated
Excellent performance is just an important part of a low-cost lead strategy. As we
will see later, becoming a low-cost leader involves more problems. First, it requires a
thorough plan to build the business structure. Take a look at the following story: If you
want to sail faster, you can't simply wax wax the barrels you call ships so they float on
the water and train sailors to drive them. You have to build a ship with a motor and
designed to accelerate. In the company too, you have to build an organizational
structure to get the leading position in low cost.
CHAPTER 4:

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CONCLUSION
In conclusion, after the overall analysis of Wal-Mart and the industry in which it
is operating, strengths, opportunities, weaknesses and threats are identified. To help
Wal-Mart achieve greater success and continue its profitable sales, Wal-Mart should
exploit its strengths, utilize opportunities, improve weaknesses and remove threats.
Thus, recommendations associated with each section should be carefully considered
and adopted.

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ACKNOWLEDGEMENT
We are sincerely grateful for all the help and advices we received from our
supervisor M.S. Phan Kim Thoa. We appreciated all the time and effort M.S. Phan Kim
Thoa put into helping, guiding and encouraging us during the time of making this
project.

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