Wal-Mart Stores Inc. - Success Strategies in Recessionary Environment

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Case Details:

Case Code : BSTR335
Case Length : 20 Pages
Period : 2005-09
Pub Date : 2009
Teaching Note :Not Available
Organization : Wal-Mart Stores Inc.
Industry : Retail
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

On Wal-Mart doing well in spite of the difficult times faced by consumers in the US, Forbes wrote, "Retailers of all kinds have been struggling as the economy has deteriorated, but Wal-Mart's strong appeal to the frugal-minded shopper has kept it afloat."⁴

Wal-Mart had been ranked Number 1 in 2007 and 2008 among the Fortune 500 companies⁵ in terms of revenues⁶. As of December 2008, the company had 176 million consumers spread across 13 countries.

According to Mike Duke, President and CEO, Wal-Mart, "Our performance relative to competitors was exceptionally strong in the fourth quarter and throughout the year. We expect this momentum to continue. We finished the year with a strong balance sheet, record free cash flow of $11.6 billion, and great inventory management. Our company created approximately 63,000 jobs worldwide this year, including more than 33,000 in the United States. In addition, Wal-Mart remains well positioned to continue to serve our customers in a challenging environment because of its strong price leadership."⁷...

Excerpts >>

4] Lisa LaMotta, "Wal-Mart Opens Wallets," www.forbes.com, February 17, 2009.
5] Fortune 500 is a global annual ranking of top 500 companies in the world by Fortune Magazine.
6] "Global 500," http://money.cnn.com/magazines/fortune, July 21, 2008.
7] "Wal-Mart Reports Financial Results for Fiscal Year and Fourth Quarter," http://finance.yahoo.com, February 17, 2009.

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