Analysis on Wal-Mart

Analysis on Wal-Mart

Introduction

Wal-Mart is the top business in the world in terms of its yearly revenues. In 2012, its yearly sales were $444 billion. It employs about 2.2 million associates worldwide. It was founded in 1962 when the first Wal-Mart discount store was opened in Rogers, Ark. Later, the store became Wal-Mart Stores, Inc. in 1969. The next year it was listed on the New York Stock Exchange (NYSE).

In a single decade, Wal-Mart stores had grown to 276 stores in 11 states. In 1983, it opened the Sam's Club membership warehouse and later its biggest super store that featured all grocery. This superstore style became its defining characteristic. Finally, Wal-Mart decided to go International and opened its first Sam's Club store near Mexico City in Mexico in 1991 (Wal-Mart, 2012).

Wal-Mart has a higher purpose. It aims to save people money in shopping while living a better life. This was the vision of Sam Walton when he founded Wal-Mart in 1962. Today, Wal-Mart ensures this goal in all its dealings with its customers, associates, and partners. Wal-Mart maintains the integrity and respect that was enshrined by its founder.

Description of Firm

Wal-Mart is the world's largest company, the largest private employer in the world, the eighth buyer of Chinese products (to Russia and the United Kingdom). The turnover of the Wal-Mart exceeds the GDP of Switzerland, its IT budget greater than that of NASA, the financial wealth of the heirs of Sam Walton that is the founder is two times higher than Bill Rates but behind these superlatives lies the story of a very unique company in Arkansas that, in the space of 40 years, has revolutionized the old Fordist models of work organization and largely reconfigured friend reports producers and retailers the entire U.S. economy.

The success and political influence of this giant company allow it to redraw the city plans to determine the real minimum wage, to break unions, to define the contours of popular culture to influence capital flows in world, and maintain what amounts to diplomatic relations with dozens of countries.

Firm Structure

The main competitive strategy of Wal-Mart is to make its dominance in every sector where it operates its business. It determines its success and dominance over competitors by measuring the sales. The strategies that Wal-Mart adopts in order to gain the competitive advantage are to sell its goods at low prices, make expansion in the business and outsell its competitors (Hemphill, 2005). In order to make it different from its competitors Wal-Mart adopts the strategy to open new stores and increasing the size of its existing stores.\

Competitors

The major source of competition for Wal-Mart is Target, it is currently ranked second among discount retailers, the major competitive advantage of Target is that it offers more upscale, fashionable merchandise than that of Wal-Mart and has earned a reputation for inexpensive, chic merchandise. The second source of competition is Kmart, which operates as a subsidiary of Sears, the basic competitive advantage it has over Wal-Mart is that its ...