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Current Situation Analysis

Mission and Strategic Objectives

Wal – Mart Corporation’s mission statement can be identified as follows:
Sam Walton built Wal-Mart on the revolutionary philosophies of excellence in the workplace, customer service and always having the lowest prices. We have always stayed true to the Three Basic Beliefs Mr. Sam established in 1962:
1. Respect for the Individual
2. Service to Our Customers
3. Strive for Excellence
Wal-Mart is the world’s largest retailer, operating more than 5800 discount stores. Wal-Mart employs more than 1.5 million associates 885,000 in the United States and 225,000 internationally. Walton had a reputation for caring about his customers, his employees, and the community. In order to maintain its market position in the discount retail business, Wal-Mart executives continue to adhere to the management guidelines Sam developed. Walton was a man of simple tastes and took a keen interest in people. He believed in three guiding principles: 1.Customer value and service; 2.Partnership with its associates; 3.Community involvement.

Wal-Mart succeeds in the United States simply by selling branded products at low cost. But that doesn't explain it all. Following is an analysis of Wal-Mart's competitive strategy.


Wal-Mart's marketing strategy was to guarantee "everyday low prices" as a way to attract customers. The traditional discount retailer, which relies on "sales," not only has to do more advertising and promotions but also has to rely more on catalog mailing, buildup of inventory before a sale, markdowns on the unsold inventory, etc. 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. Wal-Mart has become a capability competitor. With such low wages for those who make the Bratz dolls, Wal-Mart can profit greatly while still providing low prices to its customers. In a global labor market, it is the companies who can find the cheapest, most exploitable conditions, with little worker protection or regulations that will profit the greatest.

Distribution System


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...zil where they only have Sam’s Clubs and Super centers.

Recommendations as it relates to its associates
• Wal-Mart has to allow workers to file an accident report.
• Wal-Mart needs to recognize injured worker’s right to time-loss compensation.
• Wal-Mart has to increase its wages.
• Wal-Mart has to stop its violation of labor law, including intimidation, coercion, harassment and illegal discharges
Wal-Mart needs to stop cutting wages and benefits

Recommendations as it relates to its customers

• Walt-Mart’s customer service is strength to the company. Therefore, they should try to improve it on an ongoing basis. This would create customer’s loyalty and attract even more customers to buy on their stores.

• Since customers enjoy low prices, and value and effective and friendly customer service. Wal-Mart should offer training and programs to its employees such as the “Putting People First”(British Airways) in order to reinforce and improve their effective customer service.
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