Wal-Mart

Introduction

Wal-Mart is the American multinational chain of discount and warehouse stores. It is the largest corporations in the world in terms of revenue. Wal-Mart is involved in grocery and general merchandising retailing (Barbaro, 2007, pp. 26-37). In terms of revenue, it ranks as the second largest retailer in the world. Wal-Mart is the largest employer in the world and serves in fifteen countries through its over 2 million employees and 8500 stores. The first retail store was opened in the year 1962.

Mission vision

Wal-Mart's mission is given hereunder.

"We save people money so they can live better."

This was the mission and the purpose of forming the company by Sam Walton. The legacy of the founder has been carried through the years and the company is dedicated to accomplish this mission by benefitting customers and members across the globe. The company has delivered on its promise through its Every Day Low Pricing concept (Wal-Mart, 2010). The integrity and hard work is embedded in the very culture of the organization. The major aim is to make a difference in the lives of customers, members and associates. This is the mission around which all the strategies of Wal-Mart have been devised.

Primary stakeholders

The primary stakeholders of the company are its customers, employees, board members, suppliers, and distributors.

Porter five forces analysis

Supplier power

When it comes to supplier power, the company exercises great power over the suppliers in that the Wal-Mart suppliers comply with the Wal-Mart's terms to become a Walmart supplier. Wal-Mart is a customer of choice for these suppliers and gaining the shelf space at Wal-Mart is one of the biggest challenges for the suppliers related to a particular industry. In addition, Wal-Mart also produces many of its own products (Troy, 2011). Hence, if the customers raise price, Walmart will not be affected much. When it comes to the suppliers of Walmart, there is very stiff competition which will drive out any of the supplier's ability to dictate prices to the company. Hence, it is at an advantage when it comes to supplier power (Porter 2008, p. 2). In addition, the company plans to establish long term relationships with the suppliers. It treats its suppliers as partners and works closely with them. The suppliers of the company are few and will remain few but the advantage is that the company has chosen its suppliers wisely in that they offer quality supplies at economical prices. There is a pooln of suppliers out there out of which only the best ones have been chosen.

Buyer power

The buyer power of Wal-Mart customers is low, This is true because Wal-Mart already offers the lowest prices in the country. The pricing strategy of the company is based on its philosophy to generate value for its consumers to gain their customer lifetime value which means the customer will stay with the company forever. Hence, it offers more for less through the everyday low pricing strategy (Zimmerman, 2010, pp. 10-16). The campaigns and promotional strategies of Walmart are always ...