Wal-Mart Case AnalysisWal-Mart Case Analysis

Hongchul Jun

Backgrounds 1970-1985Backgrounds 1970-1985

Long prosperity (Early 70’s)End of Vietnam war (1973)Oil shock (1980)

Political changesPolitical changes

High Fed Funds Rate to fight against inflation

Brought Stagflation

%

Economical changes!Economical changes!

Stagflation

Oil shock

Unemployment

Economical changesEconomical changes$

%

Economical changesEconomical changes

Social changesSocial changesStrong labor union

Technological changesTechnological changes

HC Jun

Take Opportunities!Take Opportunities!

Political Change

EconomicChange

Social Change

Technological Change

Nature of Change

Impact of Change

Opportunities Threats Strategic Response

Higher Fed Funds Rate Stagflation

More needs of discount

store

Discourage customers

Increase stores

High oil prices & Unemployment

Increase shipping

costs

Lower profit margin

Centralized Distribution

Strong labor union

Higher wage, Inflation Strike Let them

participate!

Commercial Computer

New way of processing

information

Virtually unlimited

usage

Apply:Inventory,

Distribution

Thank you!Thank you!