International business - Wal-Mart

Overview of the company

Wal-Mart is an American Multinational-national retailer that which involve in chains of discount and warehouse stores. It is the largest corporations in the world in term of the world as well as in terms of employers. Wal-Mart is engaged in grocery and general merchandising retailing. Wal-Mart has been in the right direction in order to accomplish the highest sales in terms of volume and in terms of currency through the successful business strategy. Wal-Mart has three main business strategies which are Focus strategy, Differentiation strategy and cost leadership strategy.

Core competences of Wal-Mart comprises of Information technology in order to support international logistic systems. This has advantage in terms of performance of the product world-wide. Deflation in Price major problem for Wal-Mart as it deals with the discount stores. Despite being a company that barely meets with difficulties and their strengths are more than double its weaknesses, such as Wal-Mart all have things to improve. As Wal-Mart is the largest retailer in the US, it has the ability to become the largest retailer across the world as well- enormous opportunity (SWOT Analysis Walmart, 2005).

Moreover, they deal in a sort of similar products, hence; they have the ability to expand their merchandise and stores in order to attract more costumers. They can add more products to their stores such as musical products, which Wal-Mart has, not made various musical instruments as their products part up till now. These products are in demand can increase their profitability and margin. Low prices of Wal-Mart have forced them to cut cost in some other areas. This comprises of supplier offering price which is squeezed in lowering prices. This kind of problems can harm the company by creating demands that can be avoided and thus continue to gain the trust of people who care about the environment as this can cause abandonment of his party. The company principally places its price very low, in some cases way below their cost of acquiring the product. This enables the company to establish itself as the “low-price leader” in the local market thereby attracting more customers to the store (SWOT Analysis Wal-Mart, 2005).

Wal-Mart Stores, Inc. functions as the chain of discount departmental, largest grocery retailer store and warehouse. The company plan was initiated by Sam Walton in 1962. In 1972, it was incorporated in the New York Stock Exchange list and was branded as Wal-Mart in 2008. According to the Forbes Global 2000 list, Wal-Mart Stores, Inc. is considered as 18th largest public corporation and one of the largest leading corporations as per the revenue generation, of United States of America.

It is also considered as one of the largest employer around the world with almost 2million people working under the banner of Wal-Mart. Wal-Mart Stores, Inc. runs around 8500 stores (approximately) in 15 different countries around the world, with different retail names. In USA, it functions under its own name, whereas in some states like Mexico, it operates as ...