WAL-MART

Wal-Mart



TABLE OF CONTENTS

ORGANIZATIONAL STRATEGY3

Mission3

SWOT Analysis4

Strengths4

Weaknesses5

Opportunities5

Threats5

Competitive Forces6

Risk of New Entry6

Rivalry among Established Firms6

Bargaining Power of Buyers6

Threat of Substitute Product6

PRIMARY BUSINESS OBJECTIVES6

Marketing approaches6

4 p's7

Finance8

Operations9

HR STRATEGY10

TWO BUSINESS ACTIVITIES11

REFERENCES13

Wal-Mart

It opened in 1962 by Sam Walton, Wal-Mart has become the largest retailer in the United States, and with over 3,300 stores Wal-Mart continues to be successful. Under his successor, CEO David Glass, the small discount store chain started in Arkansas has become one of the largest corporations in the world(Huard, 1995).

Organizational Strategy

The key features of Wal-Mart's approach to implementing the strategy put together by Sam Walton emphasizes building solid working relationships with both suppliers and employees, being aware and taking notice of the most intricate details in store layouts and merchandising techniques, capitalizing on every cost saving opportunity, and creating a high performance spirit. This strategic formula is used to provide customers access to quality goods, to make these goods available when and where customers want them, to develop a cost structure that enables competitive pricing, and to build and maintain a reputation for absolute trustworthiness(Zook, Mark, 2006).

Mission

To provide everyday low-prices on their products as well as a customer friendly store environment with a strong emphasis on customer satisfaction.

Wal-Mart stores operate according to their "Everyday Low Price" philosophy. Wal-Mart has emerged as the industry leader because it has been better at containing its costs which has allowed it to pass on the savings to its customers(Huard, 1995).

Assessment Conditions

SWOT Analysis

Strengths

Reputations as a global company

Wal-Mart has stores in international market such as Canada, Mexico, UK, Germany, Asia and South America(Emert, 1996 )

Strong management and employee development program

A good proportion of hourly Wal-Mart employees are being developed into strong managers. (Bateman, Snell, 2007)

Excellent logistic system

Wal-Mart has its own distribution centers that bring a very effective global sourcing advantage. This provides a competitive advantage over others since Wal-Mart can gain cost advantage by sourcing from the cheapest locations(Archer, Taylor, 1994).

Aggressive growth strategy

Wal-Mart's growth strategy shows aggressive spending on capital projects.

        

Weaknesses

Insufficient European exposure

Despite Wal-Mart's presence on international market, it lacks its presence in the European market. Wal-Mart has no presence in Western Europe, which means Wal-Mart is losing market share to its competitors(Kirklin, 2006).

Price Deflation

Aiming to obtain sales increases, companies such as Wal-Mart have bough more merchandise units of products that are expecting price deflation.

Opportunities

Consumers appreciate diverse store types

The neighborhood market concept of Wal-Mart has been a success which able them penetrate local suburb areas(Zook, Mark, 2006).

Encourage more rapid international expansion

Entering the international market such as Europe could prove more lucrative than the US market. Other international market such as China, Mexico, and others offer plenty of opportunity for growth.

Expand super centers

Super centers are considered extremely high growth stores, more productive then supermarkets.

Threats

Pressure to meet analysts' expectations

The consistently strong position which Wal-Mart hold may appear to offer little room for growth, thus looking less than appealing as a growth stock(Huard, 1995).

Competition

The diversity of Wal-Mart store formats also means that they have to compete with different stores that are mostly national or regional ...