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Walmart the strategic management process
Analysis of Walmart's expansion
Walmart Strategic analysis
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Walmart is one the biggest retail corporation and is the one that employs more people. Thanks to people Walmart is what it is. Walmart sells goods to 260 million people in 28 countries. Walmart is a great company, and its marketing characteristics are top-notch. This is demonstrated through A complete evaluation of the company is detailed here. From the internal strengths and weakness to external opportunities and threats; these are the main parts of this marketing plan. This plan includes other parts such as the company's growth strategy. The Environmental analysis, the SWOT analysis, the marketing objectives, the marketing strategies, and the marketing implementation are essential parts of a marketing plan. Walmart was founded in Nebraska …show more content…
Matching strengths to opportunities is also an important part of the SWOT analysis. The six main strengths of Walmart are having the largest workforce in the world. This provides them a big advantage against other retail companies. The second strength is investing in developing countries that are expected to grow exponentially. The third strength is having the best and cheapest producers that provide them with supply. The forth strength of Walmart is having a worldwide organizational structure, which provides Walmart with massive funds. The fifth strength of Walmart is having a workforce and diversified technologies that monitor and control the movement of goods. Last but not least, they offer everyday low prices so that no one can be cheaper than them, this provides them a huge advantage over other retailers. The four weaknesses of Walmart are the following. The first weakness is that Walmart depends mostly on sales volume due to its small profit margin. The second weakness of Walmart is that their business model is easy to copy. The third weakness of Walmart is that they have a lot of new competitors due to the online Market. The fourth and most important is that Walmart does not change its departments depending on the season. Walmart has a lot of departments where no one really shops due to e-commerce mostly. Walmart has four main opportunities. The ability to invest in employees training is a big advantage for Walmart. The chance to expand to more developed countries and increase revenue. The investment in the human resources department is also an important opportunity for Walmart. The better people you have in the hiring progress the better worker you are going to hire. The last opportunity of Walmart is to improve the quality of its products while offering everyday low prices. The threats of Walmart are the following. The first threat is the competition that Walmart has. Not
According to Smithson, Walmart can expand its markets to new and emerging markets especially in the third world countries, which can significantly increase its revenues. Secondly, the company can reform is employment practices and improve the quality standard and in doing so, attract more customers and improve its brand image. On the other hand, the company faces threats such as the rising healthy lifestyle trend I that the company in most cases does not provide customers with healthy goods. At the same time, the company can capitalize on this aspect and increase its revenues. Aggressive competition from other discount retailers such as Target creates a great threat to the company (Smithson, 2015).
PetSmart, Inc. is a company that provides both products and services for pets. The first spark of interest for investing in this company’s stock begins with the gradual and steady profit over the the past few years. Consider the following data, at the end of the fiscal year of 2014 the recorded revenues were $6,916.6 million, which was an increase of 2.3% over the fiscal year 2013 (PetSmart, Inc. SWOT Analysis, 2015, pp. 3). In addition to revenues of the fiscal year of 2014, the operating profit of PetSmart was around $693.3 million, and compared to fiscal year 2013, this was an increase of 6.5%; the net profit for 2014 was at $419.5 million, which was an increase of 7.7% over 2013 (PetSmart,
Wal-Mart Stores, Inc. operates retail stores in various formats around the world. Wal-Mart is committed to growing by improving the standard of living for our customers throughout the world. Wal-Mart earns the trust of its customers every day by providing a broad assortment of quality merchandise and services at every day low prices while fostering a culture that rewards and embraces mutual respect, integrity, and diversity. In 2006 the net sales were $312.4 billion versus in 2005 were $285 billion.
With its headquarters in Bentonville, Arkansas, Wal-Mart was commissioned in the hands of its founder Sam Walton. Generally, the Wal-Mart effect is structured in a manner that it aids economic experts to evaluate attached global and local economic effects to the famous Wal-Mart retail. The term Wal-Mart effect is often employed by analysts to refer to the wide variety of both negative and positive influences of the retail business (Hiltzik 1). Evaluation of the retail’s effects is significant as the business is not only a key figure is the world’s economy but also it is arguably the most performing private economic retail. Briefly, Wal-Mart has conventionally caught the eyes of consumers since it not only boosts their experience by suburbanizing local shopping but also it avails low commodity prices for necessities (Neumark, Junfu, and Stephen 406).
Walmart is one of the most successful franchises of all time and continues to take fire from multiple angles, whether it’s about the costing of jobs, the wages, the health insurance, the small business destruction, or the environmental impact, but can always back itself up by negating those claims with facts that proves that it is beneficial to the community.
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
The top two reasons for such success in ranking first in retail store market, is because Wal-Mart is convenient globally and so are there prices in the competitive market . Wal-Mart has three segments which are superstores, discount stores, and Sam's Club stores, all of these are scattered in the United States, Canada, Mexico, Europe, Brazil, and Asia. One downfall was from Sam's club because too many were opening all over internationally it decreased the number of customers per location. Overall despite the company's decline on Sam's club sales, the Corporations did well over all with the figures brought in and conditions.
Walmart a name known globally they are a true empire. They are known as one of the largest company in the world. Sam Walton founded Walmart opening the first store in 1952 and Arkansas since then in has grown. According to Snyder Walmart is located in over 27 counties they have over a 11,000 stores and over two million employees. Walmart stands by the mission statement “We save people money so they can live better.” Walmart is known for is super low prices, and they compete with anyone who tries to enter their market. Walmart has a very formal and bureaucratic structure. There is a very clear hierarchy and commands come from the top and flows to the bottom. Although Walmart is so successful they have received lots of backlash due to some
Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.
At the first, Wal-Mart only operates its business in home country. However, Wal-Mart became more integrated and independent by expanding internationally. In 1991, Wal-Mart start expands the business at international level which includes 26 countries outside of the United State such as Mexico, China and Canada. Now, Wal-Mart totally has more than 6100 stores in foreign country. The step taken by Wal-Mart is to improve and maintain their achievement outside of the home country. Wal-Mart’s strategy which expands their market at international level gains a lot of benefit to their business.
Definition of Main Problem: There can be no argument that Wal*Mart has revolutionized the discount retailing industry. Furthermore, CEO Glass and COO Soderquist have stepped in at the helm of this company and continued to take it in the right direction by quadrupling sales and profits from 1987 to 1993. The main problem they now face is how to sustain their phenomenal performance, and becoming number one has magnified this issue. No longer can they just sneak into small towns where the only competition is the local merchant’s shop. No longer can they copy larger companies like Sears and J.C. Penny’s because of their size and scope. The fact is, Wal*Mart is bigger than these companies and their direct competitors Kmart and Target are doing everything in their power to close that gap. They are lurking not so quietly in the shadows, benefiting from Wal*Mart’s past choices, successes, and failures. They are there to blow the whistle if Wal*Mart steps outside the lines. Wal*Mart may be growing, but at a rate under 10% for the first time in years. Shareholders are concerned, the press is relentless, and many obstacles lie in their path if they hope to continue the trends Sam Walton set so ambitiously in 1962.
The benefits or competitive advantage Wal-Mart derived over the years from its supply chain management practices is also covered. The reason Wal-Mart is ahead of their competition is because they invest in technology in the 1980s. This investment paid off in the long run. Wal-Mart invested heavily in IT and communication systems to effectively track sales and merchandise inventories in stores across the country. They have set up own satellite communication in 1983. Employees at the stores have the ‘Magic Wand’ at hand. These barcode scanners allow you to check the prices of items at that particular store by scanned the barcode on the product. This is especially helpful when there is clearance that isn 't always marked and sometimes clearance items are cheaper than they
Wal-Mart Stores, Inc. is a renowned retail goods superstore that sits atop the Fortune list at number one. It would be very difficult to find an individual who is unaware of Walmart’s position as the largest brick-and-mortar retail chain in the world. The company has thrived over the past few years and continues to grow by effectively managing its store operations and distribution strategies. One of the major contributors to the business consistently meeting market expectations is directly attributable to their management approach. Walmart has revolutionized the way retail companies manage their supply chains in more ways than one.
Wal-mart has a reputation for caring for its customers, of course their employees, and for the prospective public. So Wal-Mart can be an industrial leader for the world of shoppers with an eye for lower affordable prices, company decision makers would continue it's systematic strategies that it's founder and president established years ago. Sam Walton believed in three guiding principles in his strategy planning they were to provide the customer with good value and service, to have a good relationship with its associates, and to be involved with the community.