It Management Throughout the Past Data Analysis Chapter

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From a local purveyor, Wal-Mart eventually became a global retailer. Aside from size, emphasis was also placed on increasing the product variety. Wal-Mart as such became the one stop store in which individuals could purchase anything from detergents and foods to clothes, garden appliances or working tools. The result was the creation of scale economies, which transformed the company forever. "This allowed economies of scale in purchasing, distribution, and marketing that […] are crucial to competitive success in a mature and low-growth industry" (Stalk, Evans and Shulman, 1992).

In terms of the forces which drove the change, these refer to the organizational desire for growth and development, as well as the commitment to the objective.

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In terms of the principles, these refer primarily to the focus on operational efficiency as a source of cost reductions. These efforts eventually allowed Wal-Mart to implement the lowest price strategy, which still ensures its success.

The Wal-Mart Stores and Dell Inc. are two stories of how organizational change is necessary for business development. Their successes do not however automatically imply that the strategies they used are universally applicable. The final message is that success is attainable through the adequate analysis of the market, the industry and the organization and the development of customized strategic efforts which respond to the specific needs of the established goal......

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