2. S-W-O-T Analysis 2.1 Strengths • Walmart is the largest retailer in the world operating in various formats worldwide (including; discounts stores, supercentres, neighbourhood markets and Sam’s Club), with 3,615 stores today. Leading to consumer awareness and customer loyalties. • In pervious years, Walmart has integrated an e-commerce aspect to their operations. The strength of this aspect is the vast physical advantage when compared with any online retailer. • Due to the convenience and numerous locations of stores, the service of the walmart.com results in an attractiveness to customers, and a way for Walmart to eventually bring more customers to its stores and increase their purchases. • Compared to Costco, Walmart has 57% of market …show more content…
• Both Walmart stores and walmart.com may continue to benefit from international expansion and increasing brand awareness. • Walmart has a great opportunity with the use of their online addition, in assisting them with their large scale of operation. The amount of data that Walmart could collect through the presence of the virtual consumer could develop a better understanding of their customers purchase habits and trends. This could assist in market research and product placement; further emphasising brand and product awareness. 2.4 Threats • In the perspective of consumers, the price awareness of everyday necessities and needs is increasing, as customers would be encouraged to continuously observe the cheapest and affordable stores. • As the growth and attractiveness of the e-commerce industry is at a constant rate, the threat of new competitors into the marketplace is very high. The simplicity and the low barriers of new entrants would be only $10.69 a year to insure that their website is running on the
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).
Wal-Mart Stores, Inc. operates retail stores in various formats around the world. Wal-Mart is committed to growing by improving the standard of living for our customers throughout the world. Wal-Mart earns the trust of its customers every day by providing a broad assortment of quality merchandise and services at every day low prices while fostering a culture that rewards and embraces mutual respect, integrity, and diversity. In 2006 the net sales were $312.4 billion versus in 2005 were $285 billion.
Walmart is one of the most successful franchises of all time and continues to take fire from multiple angles, whether it’s about the costing of jobs, the wages, the health insurance, the small business destruction, or the environmental impact, but can always back itself up by negating those claims with facts that proves that it is beneficial to the community.
By keeping their prices low, Walmart can easily pass that savings on to their customers and in return, their buyers are able to have a higher income and can spend their money on more products, preferably Walmart’s.
When I searched the official page of Walmart, I found that they are selling different type of brands like apparel, appliances, electronics, video games, furniture, grocery, jewellery and watch, toys for small kids, beauty and health, cosmetics and so on with very reasonable price that everyone can effort. They have also Walmart Rewards MasterCard so that people can get discount on their products. Walmart is also linked with The Breakfast Club of Canada to help needy people in Canada.
Walmart is a retailer that belongs to the consumer staples sector and is currently the leader in the US retail market, accounting for 11.3% of all US sales. The company operates largely in three segments: Walmart USA, which accounted for 58.89% of the company’s sales revenue in 2013, Walmart International, which accounted for 29.01% of the sales revenue, and Sam’s Club, accounting for 12.10% of the total. The company operates in twenty six foreign countries through Walmart International, and Sam’s Club operates as a membership-based discount wholesaler in the US. In total, the company currently has around 11,000 retail units under 69 different banners in 27 countries and also has online stores in 10 countries.
Our first responsibility is to provide all consumers the best products and services with guaranteed satisfaction under one roof. Wal-Mart provides a wide array of products and services at reasonable prices.
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.
The Wal-mart is the largest retail chain in United States and in the world. The wal-mart was founded in the year 1962 by Mr Sam Walton. It was originally named as Wal-Mart discount city in Rogers, Arkansas. At the time when the Wal-Mart stores started in the year 1962 it was focused only in small rural cites and town which had a population of 5000 to 25000. It was soon increased to 18 stores in 1969. In the next 30 years it had more than 4750 stores across 50 states in USA and 9 countries with $245 billion sales. It started its international operations in Mexico in the year 1991 and then it expanded it to different countries across Europe and Asia.
Walmart is a retail giant that just about everyone in America has purchased something from them. It is a one stop shop for anything that a person could ever need. Walmart stores can be found anywhere in fact most people are less than an hour drive away from a Walmart store. Walmart’s success has put many companies out of business. The chains success is primarily from low prices and using an information technology system to meet customer demands giving them a competitive advantage. Walmart’s first major use of information technology came in 1975 when the company leased an IBM computer system to track inventory in warehouses and distribution centers. Computers have come a very long way since this time and are used almost everywhere. But in 1975 this was cutting edge technology and gave Walmart the competitive advantage over other retailers. Another thing that Walmart used to be revolutionary in their supply chain was the use of scanning barcodes in 1983. Before barcodes objects had to be read by a skilled cashier. With barcodes all that was needed was a quick scan and the computer would do all the work. This greatly sped up checkout time and made tracking inventory and data collection much faster and easier for both customers and the employees. Since this time it has become an industry standard for products.
The benefits or competitive advantage Wal-Mart derived over the years from its supply chain management practices is also covered. The reason Wal-Mart is ahead of their competition is because they invest in technology in the 1980s. This investment paid off in the long run. Wal-Mart invested heavily in IT and communication systems to effectively track sales and merchandise inventories in stores across the country. They have set up own satellite communication in 1983. Employees at the stores have the ‘Magic Wand’ at hand. These barcode scanners allow you to check the prices of items at that particular store by scanned the barcode on the product. This is especially helpful when there is clearance that isn 't always marked and sometimes clearance items are cheaper than they
In the world of discount department stores, hypermarkets and grocery stores, Walmart has positioned themselves as a key player in the market. According to Fortune magazine, Walmart has generated $48,5873 million dollar in revenue in 2017, and has become the largest company in the world with their specialization in the retailing sector. Currently Walmart is employing more than two millions employees. Operating in 28 countries with over 1,1000 stores. Holding a large share of property in Mexico (2400 stores) however, a large portion is also located in China and the United Kingdom (UK) under the publication of ASDA, which, can be considered Walmart’s major operating locations.
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 company’s pricing, store size and location, technology, layout, environment, mix of merchandise and innovation all factor into its competitive advantage. Wal-Mart has many functions in which is vertically integrates such as advertising, shipping, manufacturing and purchasing. These are all large scale functions that give Wal-Mart its competitive over its smaller competition like Albertson’s, Kroger and Safeway.
At the first, Wal-Mart only operates its business in home country. However, Wal-Mart became more integrated and independent by expanding internationally. In 1991, Wal-Mart start expands the business at international level which includes 26 countries outside of the United State such as Mexico, China and Canada. Now, Wal-Mart totally has more than 6100 stores in foreign country. The step taken by Wal-Mart is to improve and maintain their achievement outside of the home country. Wal-Mart’s strategy which expands their market at international level gains a lot of benefit to their business.