WAL-MART STORES INC.

Wal-Mart Stores Inc.

Wal-Mart Stores Inc.

Historical Perspective

The founder of Wal-Mart is Sam Walton. Walton worked for JC Penney and franchised a Ben Franklin store before the beginning of Wal-Mart. Walton had many years of retail experience, about 20 years, before opening the first Wal-Mart in 1962 in Rogers, Arkansas. Walton was naturally an economical man, and was always looking for deals from suppliers, then he would lower store selling prices, to offer consumers a better deal. Lowering store prices increased the volume of goods being sold, which increased Wal-Mart's profits. Other retailers were also looking for deals, but instead of passing the deals on to the customers, the retailers would pocket the extra money for profit; this is where Walton differed.

“While other discounters such as Kmart quickly expanded across the country in the 1960s, Sam was able to raise the funds to build only 15 Wal-Mart stores” (Wal-Mart). 10 years later Wal-Mart's stock was offered for the first time on the New York Stock Exchange, which enabled Wal-Mart to expand rapidly. “In the 1980's, Wal-Mart became one of the most successful retailers in America.” (www.walmartstores.com/GlobalWMStoresWeb)With escalating sales and increasing employment, Wal-Mart branched out and created Super centers and warehouse clubs, such as Sam's Club. Even with Wal-Mart's massive growth the store has never lost sight of its core value, which is customer service.

SWOT Analysis

Strengths

Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store.

Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA).

The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement.

A focused strategy is in place for human resource management and development. People are key to Wal-Mart's business and it invests time and money in training people, and retaining a developing them.

Weaknesses

Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control(www.wto.org).

Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.

The company is global, but has has a presence in relatively few countries Worldwide.

Opportunities

To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.

The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India.

New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centres, to local and mall-based sites(www.eeoc.gov).

Opportunities exist for Wal-Mart to continue with its current strategy of large, super ...