STRATEGIC ANALYSIS OF WALL MART

Strategic Analysis of Wall Mart

Strategic Analysis of Wall Mart

Structural Analysis

The first Wal-Mart was opened in 1962 as a result of Sam Walton's dream to give people high value, low prices and a warm welcome. Till today there are more than 1.2 million associates of Wal-Mart worldwide. It has more than 3,000 stores and offices across the U.S and more than 1,000 stores internationally. In 2006 Walmart.com came into being which has brought Sam Walton's dream of bringing Wal-Mart to the Internet.

It is because of the great prices and appealing selection that customers return to Wal-Mart again and again. It is also because of the people at Wal-Mart who greet people with prompt friendly service.

This commitment to people means that Wal-Mart also take seriously it's responsibilities as a corporate neighbor. Local Wal-Mart stores have made a difference in their communities by underwriting scholarships, raising funds for children's hospital, educating public about recycling, sponsoring Community Matching Grant Program etc. (David, 2007)

Expected to reach 5,000 trading partners by the end of 2009, Wal-Mart's deployment underscores the race by powerful "hub" companies to adopt Internet EDI. Indeed, it follows in the mold of GE Information Services' TradeWeb--a similar Internet EDI service that exceeds $1 billion in business trading annually.

Yet, Wal-Mart's project stands out for its tactical and strategic synergy with corporate initiatives. As part of the project, Wal-Mart is experimenting with client-side technologies that make it possible for small suppliers to automate EDI transactions with their accounting software and verify that a message sent to Wal-Mart has in fact been sent. It also dovetails with a business strategy to use more local suppliers, particularly as Wal-Mart expands internationally. (Wilson, 2007)

The expansion of Wal-Mart throughout the U.S. is a positive change for towns, cities and the economy. It brings prosperity, healthy competition and it is part of the inevitable evolution that sweeps through the country on a daily basis. Wal-Mart should be greeted with open arms and with a positive outlook for the future. (Wilson, 2007)

Corporate Parent, Strategic Business Units

At present Wal-Mart is the world's largest retailing giant with operations worldwide and having the highest market share in the retailing industry. People usually believe that the retailing industry was born in 1962, with the establishment of Kmart, Target and Wal-Mart. (David, 2007) However, it should be noted that the already established variety stores of Sam Walton were facing competition from regional discount chains. In order to find out the solution to the problem and to identify the new market trend, Sam traveled throughout the country and discovered a new concept of retailing, which was gaining popularity in the United States. He invested almost all of his money in the establishment of the first Wal-Mart store in Rogers, Arkansas, considering the fact that the American consumers were turning towards a new concept of shopping.

The result of this proactive approach was that at present Wal-Mart is a global firm with more than 3000 stores worldwide and wholesale club operations in eight different ...