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walmarts competitive analysis
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WAL-MART CASE STUDY
WAL-MART CASE ANALYSIS
Impressions
Wal-Mart is a company that leads its industry in numerous areas. The areas which impress are the accomplishments the company has made. “About 140 million people in 11 countries shopped at Wal-Mart …every week. More than half of American shoppers visited Wal-Mart at least once a month…an estimated 82 percent at American households have made at least one purchase at Wal-Mart” (Bianco, Zellner, 2003).
Less impressive is the company being involved in over 6000 active lawsuits and what seems to be a proven track record of forcing out smaller business in the areas it locates to, putting many people out of work.
Success
Wal-Mart’s Success can be contributed to leadership, strategy and execution. They have implemented a winning, “can do” attitude of putting the customer first in everything and stream-lining all areas of the company, from the leaders down to the associates. This was superb implementation and execution by the leaders to actually take the time to think of everything the company needs to consider from the top, down. The company continues to evaluate how to be cost effective in getting products to the stores, keeping track of inventory, and earning customer loyalty. Evaluating ideas to increase sales and how to better operate the stores has played a key role in their success.
Strategy
This researcher would characterize Wal-Marts’ strategy as Market penetration and Market development. Market penetration is strategies focused “primarily on increasing the sales of present products to present customers” (Donnelly, Peter, 2007). Market development is pursing growth of the company by seeking “to find new customers for its present products” (Donnelly, Peter, 2007). C...
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... Wal-Mart CEO Lee Scott said it best, “Wal-Mart can take a leadership role, get out in front of the future, and make a difference that is good for our business and the world" (cited in PR Newswire, 2008 ¶ 2). Wal-Mart will continue to be the leader in every market it conquers by continually doing these things.
References
Bianco, Anthony, & Zellner, Wendy (2003, October, 6). Is Wal-Mart Too Powerful? Business Week, p. 102.
Donnelly, J, & Peter, J. Paul (2007). Marketing Management: Knowledge and Skills. New York, NY: McGraw-Hill Irwin
Jonathan Birchall in New York (2008, January). Wal-Mart stands out amid retail misery. FT.com, 1. Retrieved January 28, 2008, from ABI/INFORM Global database.
Wal-Mart Expands Leadership on Energy Efficiency, Ethical Sourcing and Health Care. (23 January). PR Newswire, Retrieved January 28, 2008, from ABI/INFORM Dateline database.
I don't see Wal-Mart as a huge retailer trying to take over the world with cheap prices. I see Wal-Mart as business that has played their cards the way they were dealt. Our economy is poor right now; banks are hurting because people a...
There is a lot that goes into being a successful company, and making the Fortune 500 list is most every business owner’s dream. Sam Walton is credited with being the founder and first Chief Executive Officer (CEO) of Wal-Mart. Walton and other CEO’s of the company were able to shape the success of Wal-Mart by implementing strategies that would revolutionize the way retail stores do business, all while pushing Wal-Mart to the top spot on the Fortune 500 list. This paper looks at a few different strategies Walton implemented that ultimately benefitted the company to increase revenue. How did Wal-Mart become the retail giant that it is today? T.A. Frank of Washington Monthly gives a brief history of Wal-Mart in his article Everyday Low Vices.
Quinn, Bill. How Walmart Is Destroying America (and the world), And What You Can Do About It. Third Edition. Ten Speed Press, 2005. Print.
According to Smithson, Walmart can expand its markets to new and emerging markets especially in the third world countries, which can significantly increase its revenues. Secondly, the company can reform is employment practices and improve the quality standard and in doing so, attract more customers and improve its brand image. On the other hand, the company faces threats such as the rising healthy lifestyle trend I that the company in most cases does not provide customers with healthy goods. At the same time, the company can capitalize on this aspect and increase its revenues. Aggressive competition from other discount retailers such as Target creates a great threat to the company (Smithson, 2015).
Originally a small town business, Wal-Mart has grown into a worldwide million dollar franchise. Founded in 1962 by Sam Walton, Wal-Mart has become Americas leading discount retail store. Wal-Mart has embodied the idea of a store that sells everything a person could ever need; selling everything from personal hygiene supplies to the newest technology. Even as a globally known franchise, Wal-Mart still has its pros and cons just like every other store.
Sethi, Parkish. "The World of Wal-Mart." Carnegie Council. N.p., 18 May 2013. Web. 26 Jan 2014. .
Wal-Mart has had a significant economic impact on the US, as well as the economies of countries that have relations with the US. Wal-Mart is the world’s biggest company of any kind, with 80 percent of the households in America purchasing something from the superstore; it is the nation’s largest retailer. Wal-Mart’s continuing price reduction has given Americans the advantage of being able to afford 15 to 20 percent more than they previously could. (Hansen) In a world governed by globalization and greed, competition has become rigid; as a result firms like Wal-Mart have utilized advanced marketing strategies to insure that they are on the ‘neck’ of competition, and are the core deciders of the market. (Ortega) However, Wal-Mart made decisions that were of a disadvantage to aspects of the economy, including the depletion on a small scale of Small Town USA.
With its headquarters in Bentonville, Arkansas, Wal-Mart was commissioned in the hands of its founder Sam Walton. Generally, the Wal-Mart effect is structured in a manner that it aids economic experts to evaluate attached global and local economic effects to the famous Wal-Mart retail. The term Wal-Mart effect is often employed by analysts to refer to the wide variety of both negative and positive influences of the retail business (Hiltzik 1). Evaluation of the retail’s effects is significant as the business is not only a key figure is the world’s economy but also it is arguably the most performing private economic retail. Briefly, Wal-Mart has conventionally caught the eyes of consumers since it not only boosts their experience by suburbanizing local shopping but also it avails low commodity prices for necessities (Neumark, Junfu, and Stephen 406).
Wal-Mart started out as a 10 cent store in the beginning. Today Wal-mart has expanding into the world’s largest store, in terms of sales, and is estimated to be the largest company in the world based on sales. It follows that Wal-mart operations are based primarily in the United States, although it has recently begun to expand to other countries, including Japan. The company has begun to face public censure for its labor practices as well as the pressure that it puts on suppliers, but the company is also credited with helping to keep the inflation rate low in the United States, no small feat for a single company. This research considers whether Wal-Mart operates as a monopoly or as part of an oligopoly, and the consequences for the larger economy of Wal-Mart's behavior. Wal-mart wants to be the best in everything they do in sales, customer services, and etc. Wal-mart wants their customers to have a friendly and satisfying e...
Wal-Mart, the multi-billion dollar corporation and the second largest employer in the world, is the most controversial corporation in the world. Wal-Mart stands as a global powerhouse and affects countless individuals around the world. This company is constantly receiving criticism from unions, human rights groups, small towns and small businesses. There are accusations of Wal-Mart treating workers poorly and driving small businesses out of business. However these accusations are false and over exaggerated. Wal-Mart offers families and low income individuals quality products at affordable prices. Their workers are paid competitive wages and are treated with respect. Wal-Mart opens their stores in rural and under developed areas. Wal-Mart improves the lives of the folks who live rural area and improves their lifestyles.
Dicker brings up valid statistics that help give an understanding of just how powerful Wal-Mart actually is including that Wal-Mart employs one out of every 115 American Workers and the business is four times the size of its largest rival (790). He also goes into great detail about many of the issues with Wal-Mart. He talks about not only the many lawsuits filed against Wal-Mart but also the feelings of the workers about their jobs (791-795). Dicker’s article brings up many valid points about the negative aspects of Wal-Mart, however he overlooks the details of how the business manages to stay powerful despite all of the terrible things that are going on and fails to include any benefits that come from
"Wal-Mart: The High Cost of Low Prices." Top Documentary Films. Web. 8 Aug 2011. .
Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.
Wal-mart has a reputation for caring for its customers, of course their employees, and for the prospective public. So Wal-Mart can be an industrial leader for the world of shoppers with an eye for lower affordable prices, company decision makers would continue it's systematic strategies that it's founder and president established years ago. Sam Walton believed in three guiding principles in his strategy planning they were to provide the customer with good value and service, to have a good relationship with its associates, and to be involved with the community.
The gross profit during the year 2015 was actually a $10 billion increase from their fiscal year 2014 (University of San Francisco, 2015). Over the past six years, Walmart continues to generate these types of numbers, representing increases in growth, time and time again. The company’s income was generated by more than 4,500 stores in the United States alone which is supported by a supply chain that moved from number 14 to number 13 on research and analyst company Gartner’s annual ranking (University of San Francisco, 2015). Many business professionals have analyzed and interpreted Walmart’s supply chain management approaches, making it apparent which elements of their strategy have proven effective. These major supply chain components that have shaped Walmart’s success over recent years are their buyer bargaining power (one of Porter’s Five Forces), focus on the overall customer experience, and investments in emerging technologies along with the implementation of these technologies in their business