1. Walmart Case JOG MBAM 619 January 9 th 2009

2. PEST Analysis Capitalize on technological improvements Obsolescence, Cost of UPC tech Just-In-Time Inventory alliance with vendors Real-time communications/ better inventory management Computerized inventory tracking & POS systems Technological Change Identify product/ market needs to serve the educated, price-sensitive consumer Other low cost retailers may compete in the same market New growth opportunities in discount retailing and in warehouse clubs “ self-service”, no-frills concept More educated consumers, thrift shoppers Social Change Compete based on price supported by a better cost structure Low barriers to entry in discount retailing Retailing opportunities in smaller, rural cities Diversify store locations into rural cities Growth of consumer spending in small cities Economic Change Focus on efficiency of logistics and cutting admin expenses Unpredictable transportation costs Restructuring hub and spoke distribution system Logistics cost increased Gas crisis in the late 1970s Political Change Strategic Response Threats Opportunities Impact of Change Nature of Change

3. Industry & Competitive Analysis

4. Industry & Competitive Analysis The overall market for retailing merchandise has been growing steadily. Source of chart: U.S. Census Bureau Rise in competitors in warehouse clubs and in the Sunbelt: Kroger, Zayre, W.R.Grace, Costco, Pace Membership Warehouse, Wholesale Club. K-Mart is a main competitor in discount retailing .