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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 14Problems in Situational Analysis 17Strategic Alternatives for Problems 19Selection of Strategic Alternatives and Implementation 20Summary Financial Analysis……………………………………………………………………………22-27References………………………………………………………………………………… 28 - 30Executive SummaryWal-Mart Stores, Inc. is a major domestic and international company. Wal-Mart reported net sales of more than $401.2 billion for 2009. Despite difficult economic conditions throughout the rest of the nation, Wal-Mart's profits grew 7.2% since 2008. Increases in the company's stock reflected the success Wal-Mart experienced with earnings per share calculated at $3.35. Wal-Mart's overwhelming success may be attributed to the company's ability to maintain a comparative advantage in a highly competitive global market ("Wal-Mart 2009", 2010).Examination of Wal-Mart from an organizational, financial, and marketing standpoint shows how the company has developed dynamic strategies to compete with rival companies. One of the organization's strategies has been to increase the number of Wal-Mart Superstores throughout the nation. These supercenters provide consumers with additional products, such as groceries and other produce. The supercenters have been immensely successful and the grocery division alone accounted for 51% of the company's profits in 2009 alone (Talley, 2010).Wal-Mart is a unique company that has seen its share of controversy and conflict. The company has attempted to enter many international markets. For the most part, Wal-Mart has been successful in entering foreign markets; however, in the past few years an attempt to build a number of supercenters in India proved disastrous. Wal-Mart failed to take into account the fact that more than 70% of India's population makes a living as farmers. Instead of partnering with the communities, the company mistakenly thought it could compete with the farmers for market share. Wal-Mart appears to have learned from this mistake, but it is a salient example of the obstacles companies face when conducting business internationally versus domestically.Situational AnalysisEnvironmentWal-Mart and Wal-Mart...

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