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Analysis Of Wal Mart

2707 words - 11 pages

Analysis of Wal Mart

Wal Mart is the largest retailer in Canada , Mexico and USA. In
addition to that Wal Mart has been known in USA not only for its
dimensions but also for a very big number of reasons and good values.

I think the best way to start an analysis about Wal mart strategy is
to see where the company is now with the use of a brief Swot analysis.

As far as the Strengths are concerned , I think that one of the most
important features Wal Mart has is the customer approach. Sam Walton
wanted its organization to provide the customers with the so called
“aggressive hospitality” and with this Walton meant that the employers
have to provide the customers with all they need , they always have to
be friendly and think like the customers. Naturally the biggest
strength was the price. Wal Mart can provide the best price among the
all retailers in its category. Wal Mart has the best price because of
its strategy and its relationships with all the production chain that
I’ll describe later. Another important feature is the differentiation
in the different types of stores. For example Sam’s club can provide
prices 10-15% below the standard prices to serve small businesses and
to them who have paid the member fee. Another example can be the
possibility of “one stop shopping” in the supercenters so the families
can find all they need in one center. The use of the information
technology system gives the company the possibility to cut their
costs. Also the way the employers were considered was an important
feature. The employers are treated as partners and they are eligible
to the profit sharing of the company. This is an effort to make the
employers working better. These are only few examples of the strengths
of the company.

Going on with the weaknesses I think that one weakness could be found
in the fact that the company does not use fidelity programs ,except
for Sam’s Club , as other competitors , like Safeway ,do. The fidelity
programs are an important instrument to lock in the consumers . In
addition to that the mission statement was not formalized . As we know
is always important to have a clear mission statement because it helps
to have a more clear vision about the company and especially about the
purposes of the company. Another weakness is that the women employees
are paid less than the men employees are. This problem arose in 2003
when the company had to face with a federal lawsuit filed by six
female employees complaining that there were discriminations against
women in pay. This fact was also underlined by some studies based on
the Wal Mart’s payroll data.

As far the opportunities are concerned I think that the European
market can be a market where to put more efforts in the expansion .
Another opportunity can be the creation of an online store where the

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