Week 4 Assignment



Week 4 Assignment

Introduction

The report includes the analysis of the Wal-Mart. The report has chosen Wal-Mart because it belongs to the retailing industry. Wal-Mart has its outlets in more than 55 countries all over the world. Wal-Mart, the world's largest retail chain, which deals in grocery stores and general merchandise, continuously analyze its market situation for improvement in its operations. It also offers various discount stores. Walmart has grabbed a large share of the US market. Walmart has super centers and discount stores. Walmart has planned to open a new mobile market and on campus store in order to expand their market.

Discussion

It is necessary for every company to evaluate the external and internal environment of the company so that they can make strategic decisions for its growth.

Situation Analysis of the Wal-Mart

The situation analysis of a company comprises of its external and internal environment.

The internal environment of Wal-Mart

It basically involves SWOT analysis of an organization (Singh et al, 2006). SWOT analysis of Walmart is as follows. SWOT is an abbreviation of Strengths, Weaknesses, Opportunities and Threats.

Strengths

Walmart is world's largest retail chain with efficient capabilities of managing logistics. Walmart is following the strategy of ELP. Every Day Low Pricing means that they are giving discounts to all their loyal customers on a daily basis so they shouldn't wait for the discount seasons. Walmart has adopted the best cost leadership. Walmart sells products mostly related to consumer goods or households so they have stable economic growth. Walmart has wide store's net work so that they can cater a large market share. Wal-Mart buys merchandise in bulk which is available in their stores by 24/7so that customers do not have inconvenient. Wal-Mart is also catering a large amount of customers by fulfilling their needs by providing them a wide range of products. Walmart is opening new stores all over the world in order to gain competitive advantage.

Weaknesses

Wal-Mart's profits are decreasing day by day because of its large expansions. Walmart is also facing some lawsuits related to labor and it's incurring a huge cost. Walmart has also very high employee turnover rate. Wal-Mart's has little differentiation in its products as compared to it's competetiers. Walmart is not offering something new to its customers. Walmart is also facing the problem of notorious publicity. Walmart is also expanding internationally so its outside expanses are increases day by day. Wal-Mart's online store is not serving customers in the way its competitors are doing so there are chances of loosing potential customers.

Opportunities

Walmart is expanding rapidly in the international market so they can increase their profits in the future. Walmart has also opportunity in the online business. They can attract more customers by providing them with the efficient online shop facility.

Threats

Walmart has a very high competition. Amazon has also started online business in retailing which is a threat to Walmart. Wal-Mart's high expansion cost is also a threat due to its international operations.

External Environment of the company

The external environment of the company includes its competitors, suppliers, customers ...