Wal-Mart's Growth Conundrum : Should its Business Model be Changed?



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Code :BSM0062P

Year :
2007

Industry : Retailing

Region : Global

Teaching Note:Available

Structured Assignment :Available

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Introduction:'Everyday low prices' has been the primary growth driver for Wal-Mart since its inception in 1962. With several players successfully selling at low prices, Wal-Mart can no longer claim it as its USP. In 2006, Wal- Mart Stores Inc., the Bentonville, Arkansas, US headquartered retailing giant recorded its first quarterly profit decline in 10 years. Wal-Mart's domestic same-store sales4 posted a meager 1.9% points rise in 2006, which was the worst performance in Wal-Mart's history. Is Wal-Mart's business model running out of steam? Will Wal-Mart be able to resurrect its productivity and profits, and unearth its next growth pool?

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