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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. Mr. Walton took his vision for retail sales to management at Ben Franklin stores and they essentially did not believe his concept was a good idea. So he set off on his on to create this huge retail giant that we all know as Wal-Mart and the rest you can say is history. Wal-Mart begin taking advantage of its opportunities by looking at the local population size with 5000-25000 being the ideal size, and catering to that market by providing jobs and discount products. As Wal-Mart begin to expand it set its eye on the global economy and begin to place stores in different countries around the world using the same concept, quality merchandise at discount prices. The Wal-Mart retail concept has became so powerful that suppliers are forced to do business the Wal-Mart way. Suppliers and manufactures are forced to comply with Wal-Mart demands because Wal-Mart sells such a huge quantity of their products. Wal-Mart has also ventured into the city suburbs by providing stores that are able to adapt to the suburban type of environment. All of this has created tremendous opportunity for Wal-Mart to expand and grow to 250 billion dollar empire. However all of this success has not come without risk and threats. Being such a large retailer it has a huge employee base and a few years ago some employees sued the retail giant for not paying overtime. Being that the store deals with discount products and located in rural environments it has the potential to attract illegal aliens either as customers or employees. Wal-mart did not have a very comprehensive screening program for its potential employees prior to the naturalization raid carried out in 2003, which discovered several employees working without legal immigration paperwork.Case Question #2:Use Porter's Five Forces Model to analyze the global retailing industry. Given this analysis, is the industry attractive or unattractive? Support your decision.The threat to new entries is very real to Wal-Mart because the other foreign huge retail giants like Carrefour, Ahold, and Tesco, have an advantage on the global stage because they've been in the global market longer and understand it better than Wal-Mart. Wal-Mart overcame these threats by sticking to the concept that consumers no matter what nationality would be attracted to discounts that the retail store offered. There seems to be plenty of room for all of these global discount retail stores to make a profit. Bargaining powers of suppliers has been significantly reduce by the power of Wal-Mart. Wal-Mart has come up with name...

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