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

Find Another Essay On Analysis of Wal Mart


5340 words - 21 pages they didn't need high dividend. So we can guess the sears is stable in his business and net income, it didn't need so much net income keep in his account, at the same time it's shareholder want dividend to invest other project. But Wal-Mart is more active, it wants to open new market, so it keeps enough money to investment.WACC Analysis- Weighted Average Cost of CapitalWhy Use WACC? Corporations create value for shareholders by earning a return

Wal-Mart Analysis

1730 words - 7 pages will ensure continued revenue and market share growth via foreign expansion, the foray into new domestic markets (the urban market) and concentration strategies in existing markets by enhancing the one-stop-shopping appeal of the current units. One red flag that the company analysis uncovered was that Wal-Mart does not have a formal mission statement. The lack of a mission statement influences the cohesiveness of goals, objectives, and

Wal-Mart Financial analysis

1079 words - 4 pages Commission, "no one financial statement tells the complete story. But combined, they provide very powerful information for investors. And information is the investor's best tool when it comes to investing wisely."Retail Manufacturing Company - Wal-MartWal-Mart is a global retailer and one of the best-managed companies in the world. Discounter Wal-Mart Stores, Inc. had sales over $400 billion, nearly 10 percent of U.S. retail sales, in year that

Company of Wal-Mart

1406 words - 6 pages Wal-Mart Stores Inc. is the largest retail company in the United States and has been ranked number one on the Fortune 500 Index by Fortune Magazine. However despite the fact that the company is big, it has not survived or evaded the normal challenges that corporations go through, irrespective of whether private or public (David, 2012). For instance, the living wage bill of the United States resulted in Wal-Mat threatening to close down its

Historical Bckground of Wal-Mart

2127 words - 9 pages or researching them first. Thus, Wal-Mart failed to do a thorough background check of any potential employee. A background check would have helped determine the integrity of an employee for it includes job experiences, references, and legal documents. Analysis of the effects of the unethical activities on the well-being of society and the economy Wal-Mart affects the economy by offering lower prices, more jobs and small local tax base

Strategic Audit of Wal-Mart

2685 words - 11 pages convenient locations, Wal-Mart has become an American icon and institution. Wal-Mart has essentially conquered the small-town, Midwest, farm communities of America and strives on continued public and customer service, and positive contribution back to the communities in which it resides.Financial comments and analysis - -In millions of U.S. DollarsBased on 12 months as ending 1/31/2004Revenue 256,320Other Revenue 2,352Total Revenue 258,681Cost of

Control Mechanisms of Wal mart

1516 words - 6 pages Control Mechanisms of Wal-Mart PAGE \* MERGEFORMAT 3 Control Mechanisms of Wal-MartWithout the effectiveness of control, the successes of most companies would be easily faltered. Wal-Mart, being one of the World's largest retail chains, has established itself as a global leader, and not without having a defined plan of action. Through varying efforts and countless control regulation, this retail giant has secured itself within the industry

Globalization of the Wal-mart

1030 words - 4 pages Wal-mart is the biggest retailer of the world. They made every effort to achieve this success. In this essay I will focus on the Globalization of the Wal-mart and international organizations for trade which helped it grow.The first Wal-mart store was opened in 1962 by Sam Walton. Sam Walton always used only one business policy that is "Sell stuff that people need everyday just a little cheaper than everyone else, sell it at that low price all

The Ethics of Shopping at Wal-Mart

1009 words - 4 pages One has to work hard to consider their values in particular issues and how strongly they feel. This is the choice many people make when they invest in mutual funds, and have no idea where their mutual funds are invested. Many vocal opponents to shopping at Wal-Mart might discover they hold investments in the Wal-Mart. There are 1050 mutual funds that are invested in Wal-Mart, some of the largest mutual funds in the world. There are many people

Annual report evaluation of Wal-Mart

1684 words - 7 pages Today, consumers who are searching for a department store that offers convenience as well as discounted prices, the first store that comes to mind is Wal-Mart. Founded in 1962 by Sam Walton, Walmart has become one of the largest retailers in the United States. Wal-Mart was incorporated on October 31, 1969 and later became a part of the New York Stock Exchange in 192 as WMT (, 2009). For my final project, I will evaluate Wal-Mart's

History of Beyond Petroleum and Wal-Mart

1183 words - 5 pages , 2007, p 347). Wal-Mart has grown to become the top retailing company, in the world. The company started with a few stores and increased as business performed well. The company grew from a local retailing company, in the United States of America to a worldwide retailer. Despite the success that the world top retailer has achieved it has encountered a tension between globalization and localization (Johansen & Johansen, 2007, p 148). By the year

Similar Essays

Swot Analysis Of Wal Mart

3324 words - 13 pages Outline I. Summary of Wal-Mart A. What is Wal-Mart B. Economic Factors of Wal-Mart C. Customer Relations D. Employees II> External Analysis A. External opportunities B. External Threats C. Competitors D. Foreign Markets III. Internal Analysis A. Internal Strengths B. Human Resource C. Quality products For as long as I can remember I have seen Wal-mart stores up in almost in every town that I have traveled through. The store started by Sam

Wal Mart & Wal Mart Grocery Financial Analysis

6457 words - 26 pages PAGE PAGE 1 Strategic Analysis of Wal-Mart & Wal-Mart Grocery, Ferry, BUS 450Business PoliciesStrategic Analysis of Wal-Mart and Wal-Mart GroceryProfessor: Greg DeanCohort: BBA1-21Maria FerryApril 27, 2010Table of Contents3Executive Summary 4Situational Analysis 4Environment 4Industry 5Threat of new entrants 5Bargaining Power of Buyers 6Bargaining Power of Suppliers 7Substitute Products/Services 8Intense Rivalry 10Firm 12Market Strategy

Wal Mart Swot Analysis

1070 words - 4 pages Evaluate the general environment of Wal-Mart using the framework in Chapter 2. What are the key opportunities and threats facing Wal-Mart? (This is the "OT" of a SWOT analysis)The opportunities for Wal-Mart are tremendous. This huge retailer began with an idea from Mr. Sam Walton in 1962 in a small town in Rogers Arkansas. The Wal-Mart Chain had evolved from a chain of stores called Ben Franklin stores that Mr. Walton and his brother operated

Wal Mart Business Analysis

1518 words - 6 pages For the final project I chose to complete a management analysis on Wal-Mart. Covered in this paper are the issues of productivity, hiring practices, corporate social responsibility and culture, diversity and affirmative action, the use of information technology, leadership, teamwork, and managing ethics.Productivity is very important to any successful business. Wal-Mart has increased its productivity through many different advances. Business