...Walmart Swot Analysis Walmart, which is a multinational retail company is based in the US. It majorly deals with selling groceries and general merchandise. The company has developed a well organized planning method that is used to analyze and evaluate the opportunities and threats, strengths and weaknesses detected in a particular business venture. The method is known as Swot analysis. Despite the strengths approved, there is an existence of certain weaknesses which have been found to be existing in the Swot analysis of the company. Some of the weaknesses include; (1) employee turnover, which is high, (2) negative publicity, (3) little differentiation (4) labor related lawsuits, and (5) inappropriate marketing aspects (Dess, 2012). 1. Inappropriate marketing aspects. This is one of the major weaknesses concerning marketing identified in Walmart company. In this case, the company has failed to fully expand into new markets with respect to national and international levels. Because of the economic effects such as traffic and problems concerning the environment, many parts across the US attempted blocking Walmart introduction. This was done due to the company's damaged reputation. When the company conquers and acquires a new location, it finally insists in new stores which are unethical to be opened. For example, the company shut down business in Germany and South-Korea claiming that they were under-performing (Roberts & Berg, 2012 ). 2. Lobor related lawsuits Every year, Walmart...
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...Japan, Mexico, Puerto Rico and the UK. The company is headquartered in Bentonville, Arkansas, the US. The company's strategy is to offers its customers a broad assortment of products with even lower prices. It also aims to grow its global eCommerce business. SWOT Analysis - Overview Wal-Mart Stores, Inc. - Strengths Strength - Employee Friendly System Strength - Marketing Activities Strength - Robust Store and Distribution Network Strength - Diversified Product and Brand Portfolio Strength - Strong Market Position Wal-Mart Stores, Inc. - Weaknesses Weakness - Legal Controversies Weakness - Product Recalls Weakness - Declining Profitability Ratios Wal-Mart Stores, Inc. - Opportunities Opportunity - Increasing Demand for Private Label Products Opportunity - Strategic Expansion Opportunity - Conversion of Discount Stores into Supercenters Opportunity - Expansion through Acquisitions Wal-Mart Stores, Inc. - Threats Threat - Risks Associated With Suppliers Threat - Intense Competition Threat - Changes in Labor Laws and Other Issues http://andrewfanno.wordpress.com/2012/02/23/walmart-part-3-internal-analysis/ Strengths: -Cost advantage over rivals Information technology Walmart has a core competence involving its use...
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...SWOT Analysis Wal-Mart Dala Czepla MGT 521 October 15, 2012 Dr. Lola Jackson Wal-Mart was founded by Sam Walton in 1962, incorporated in 1969 and publically traded in 1972. Wal-Mart is the largest retailer in the United States and one of the biggest Fortune 500 companies, second only to Exxon. Wal-Mart has over 8 thousand stores in 15 countries operating under 55 different names. Strengths “Wal-Mart is the largest retailer in the world. The company was ranked first by Fortune 500 on the list of America’s largest corporations, as well as on the list of world’s largest corporations in 2011. By the end of FY2011, the company had more than $400 billion in revenue, over $25 billion in operating income, 8,970 stores, and over 984,949 square feet of space. The scale of its operations is unprecedented and there is no competitor of comparable size. The company has been expanding international operations. In FY2011, Wal-Mart’s international operations account for nearly one fourth of the company’s total revenue, half of its store count, and nearly 30% of its retail space.”, Datamonitor (2011). Wal-Mart US is an essential portion of consumers' budgets as it accounts for a substantial portion of the country’s total retail and grocery sales. The company is a leader in the US retail scenery and is emerging worldwide at a fast pace .Wal-Mart, as a frontrunner in the market, is able to reproduce its best practices repetitively on an unmatched scale both in the US and...
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...Wal mart With around 5000 retail outlets worldwide, operating in more then a dozen countries and with over US$286 billion in annual sales, Wal-Mart is the top retail chain and number one fortune 500 company in the world. Wal-Mart is the top employer in the U.S. with 1.3 million employees, “the company accounts for 9 cents of every US retail dollar and sells around 20 per cent of the nation’s groceries and pharmaceuticals.” (Times News Network). Wal-Mart’s sheer size gives it unrestrained economic power which allows it to drive down costs in the retail and manufacturing sectors and to enact its own standards with regards to its work force. Facts about Wal-Mart and China * It is important to understand that there is a huge difference between the Chinese model and the Indian growth model, the Indian model is essentially domestic demand driven unlike the Chinese one that is fuelled by export growth. * More than 70 per cent of the commodities sold in Wal-Mart are made in China. * Wal-Mart Stores Inc, says its inventory of stock produced in China is expected to hit US$18 billion this year, keeping the annual growth rate of over 20 per cent consistent over two years. * "If Wal-Mart were an individual economy, it would rank as China's eighth-biggest trading partner, ahead of Russia, Australia and Canada," Xu Jun, Wal-Mart China's director of external affairs said. * Insiders point out that Wal-Mart's imports from China have largely influenced the US trade deficit...
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...money so they can live better" (Walmart, 2012), has proven to be the culture of the company that began from a single store to an empire. Today, Walmart operates more than 10,000 retail units under 69 different banners in 27 countries. Walmart employs more than 2 million associates who serve 200 million customers and members every week (Walmart, 2012). Walmart’s strengths lie in their high technological information systems monitoring worldwide product activity at a single glance, they manufacture they own branded goods as well as supply goods from local suppliers and other major brands not to mention their buying power. The weaknesses of Walmart include having control of such a huge organization and being responsible for and managing a great number of employees. Having pressure from suppliers with regard to price and their ability to supply when required. Becuase of the low prices customers often question and are concerned at the quality of the goods.This is offset to some extent by the satisfaction guarantees offered. The opportunities for Walmart include worldwide expansion, creating Walmart convenient stores and home delivery of goods purchased via internet to rural customers. Threats to Walmart include opposition from local competing vendors in communities. Being successful, they are open to attack on any ethical stance - low pay and poor work conditions, supply of goods from 'poor' cheap labour countries, and environmental issues. Walmart understands that their stakeholders...
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...Walmart SWOT Analysis Strengths Scale of operations. Walmart is the largest retailer in the world with more than $400 billion in revenue and 10,130 stores. It makes Walmart the giant that no other retailer can match. Due to such large scale of operations, the corporate can exercise strong buyer power on suppliers to reduce the prices. It can also achieve higher economies of scale than competitors because of its size. Higher economies of scale results in lower prices that are passed to consumers. Competence in information systems. The corporate achieves significant cost savings because of its extensive information systems that tracks orders, inventory levels, sales and other related information in real time. All this information can be instantly accessed, analyzed and decisions made at each store. Effective management of supply chain and logistics is one of the most important factors for Walmart success. Wide range of products. Walmart can offer wider range of products than any other retailer. It sells grocery, entertainment, health and wellness, apparel and home related products among many other categories and offers both branded and own label goods. Wide range of products attracts more customers to Walmart stores. Cost leadership strategy. This strategy has helped Walmart to become the low cost leader in the retail market. This strategy requires selling products ant the lowest price possible and providing a no frill services to achieve higher economies of scale and attract...
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...competitors and create value and examine the measurement guidelines and the effectiveness of those guidelines to authenticate strategic effectiveness. Researchers have found a definite connection between profits and environmental scanning. Internal and External Environments Because a company has little to no control over external issues, it is important to monitor continuously for changes so that corrections can be made promptly. PEST is an acronym for political, economic, social, technological problems that may affect an external environment, and companies use this tool for external environmental scanning. The political factor looks at how legal issues and government regulations impact a company’s ability to gain profits and success. Walmart and Dollar General both will have to contend with tax guidelines, trade regulations, employment laws, environmental and social policies, and safety regulations. Both companies should consider federal and local power structures, and strategize for how a shift in power could impact their business. The economic factor scans outside economic issues that influence the business’s success. Topics to consider are inflation, interest rates, economic growth, unemployment policies, and economic stability, unanticipated shifts in resource costs, and commodity, and credit availability. The social issue can analyze the cultural and demographic aspects of the companies...
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...primary intent of this paper is to compare the current strategy and operational approaches for two pharmacy retail stores such as Walmart and Walgreens chain stores. A SWOT analysis for both companies is bellow in table. My understanding after the initial study / investigation is that Walgreens has chosen to be conservative with their strategy in increasing their customer reach, market and base by a more organic growth than Walmart which growth approach is to rapidly build small and large supercenters on major neighborhoods in the United States and key cities around the world. The main strategy reporting evidence that reflect these two companies operational growth is mainly reflected in each financial statement that shows profit and loses for each company and their reinvestment percentage into each one. The financial analyses display the result of each company decisions to their market growth approach and impact on investment. Because of their more conservative stand and minimum risk taken by Walgreen’s, their operations model seems more solid and better prepare to accept their rate of growth in contrast to Walmart aggressive scheduled and heavy investment direction. Two different and what appear to be very effective approaches despite their very recent and impressive operations growth for each company. SWOT Analysis Walmart Weakness * Walmart approach to go with large space stores has little penetration in urban stores, plus as it continue to open in larger cities...
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...1-Wal-Mart history and Introduction The first Wal-Mart was opened in Rogers, Arkansas, in 1962. By 1969 it was incorporated into Wal-Mart Stores, Inc., and in 1972 went public on the New York Stock Exchange. The company grew steadily across the United States, and by 1990 was the nation's largest retailer. In 1991 and 1994, Wal-Mart moved into Mexico and Canada respectively. By 1997 it was incorporated into the Dow Jones Industrial Average. As of 2005, Wal-Mart has stores in the United Kingdom, and Puerto Rico, and brings in revenue of close to 300 billion dollars a year. In 2006, Wal-Mart invaded the China and India's markets. During the last two decades, Wal-Mart has been able to take advantage of the rise of information technology and the explosion of the global economy to change the balance of power in the business world (Wikipedia, 2006). Today Wal-Mart continues to grow and their success is not only from their sound strategic management planning but also from its implementation of those strategic plans. In other words operational planning has been an important key to their success. 2-Wal-Mart Strategy Once plans have been developed, an organization must address how management will be accomplishing be those plans. This involves operational plans that must flow from strategy; specify resource, time issues, and commitment of human resources. Operational plans at the lower - levels of the organization, have a shorter time horizon, and are narrower in scope (Bateman...
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...Week Four - Business Analysis Part I Before we conduct a SWOT analysis on Walmart, I want to give a brief history of the company. Walmart was founded in 1962 in Bentonville, Arkansas. Sam Walton’s vision was to achieve high volume of sales by maintaining sales price lower than competitors, which meant he had to reduce his profit margins. This multinational organization has been an example of growth, stability, profitability, and leadership in the retail business. The company is the second largest public corporation in America on the list of Fortune 500 in 2012 with 446,950 million dollars in revenue and $15,669 million dollars in profit (CNN Money, 2012). SWOT Analysis Strengths * The biggest private employer in the world (CNN Money, 2012). * Low price leader in the market since the beginning. * Second America’s largest corporation in 2012 (CNN Money, 2012). * One stop shop. Wide range of products under one roof. * Worldwide presence with more than 10,000 stores in 27 countries (Duke, 2012). * Leverage in the marketplace because of high purchasing volume. Weaknesses * Criticized of low paying jobs to its employees. * Limited grow opportunities to its employees. * Deficiency in the upscale market. * Adverse effects on small business in local community * Suppliers have to cut margins to sell their merchandise. * Monopolistic business. Opportunities * Pursue new international markets, especially in Asia and...
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...I. INTRODUCTION The mission statement for Walmart is a simple statement to focus on consumer needs. “We save people money so they can live better. If we work together, we’ll lower the cost of living for everyone we’ll give the world an opportunity to see what it is like to save and have a better life”(Walton S.) Walmart’s company culture includes a list of values and beliefs it establishes through its management and employee relations. The company’s marketing efforts are to establish awareness that they are the price leaders in their market. In recent times, the company has focus on becoming involved more in local communities by charity and service. With the general instability of the global economy, corporations like to play it safe; Walmart is an example of a multinational which is making a bold move. Acquiring South African grocery chain Massmart offered Walmart a safe foothold to prepare for the next step, which is continental expansion. South Africa is arguably the most westernized country in Africa. Western companies in general perceive it as easier to do business there than in other African nations. II. SWOT ANALYSIS The SWOT analysis of Walmart shows that the company can have higher long-term success potential through aggressive global expansion, especially in retail markets in developing countries. Strengths: Walmart’s strengths are all related to the size of its business. These strengths enable the company to withstand threats despite its weaknesses. Walmart’s...
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...One of the largest companies in the Fortune 500 is Walmart. This company is able to offer a wide selection of goods at a strong competitive price. Their size allows them to gain discounts from suppliers and pass those savings onto the customers. Their expansion into other countries and partnership formations have made them a more profitable organization. They have opened up thousands of job opportunities globally. They can continue to expand into convenient stores or open up an internet base store that does home delivery. The possibilities are endless with an organization that has strong management. Unfortunately their shortcomings are due to the large size organization. It is hard maintaining and managing all employees to see the same vision as the top management. The suppliers are always fluctuating their prices and their ability to supply when necessary. Even though Walmart offers satisfaction guaranteed, it is difficult to control the quality of the products because of their low prices. Small vendors and the local competition do everything they can to oppose the building of Walmart within their community. Walmart is a huge store and therefore must be built further outside the city than the smaller convenience stores. They can be affected by gas price increases because fewer people want to expense the travel costs. Like any company that is successful they are open to criticism and ethical mentality, such as lower salaries and poor work conditions, and suppliers coming from...
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...Company references Group 8: Rui Wang Chikun Zhang Qinwen Zhang Planning: For the Porter’s generic strategies, Wal-Mart is overall cost leadership strategy, because Wal-Mart’s mission is “Save money. Live better.” It always low prices, and using this strength to attract customers. Moreover, for the Miles and Snow’s strategy, Wal-Mart is the type of analyzer which incorporates elements of both the prospector and the defender, because Wal-Mart is not only defending its current market by lowering its cost, but it also seeks out the market opportunities that expand its scope of globalization. Wal-Mart has over 7100 stores worldwide and more than 4000 in America, so Wal-Mart is also a global strategy company. It views the world as a single marketplace and addresses the needs of the customers worldwide. Wal-Mart has proactive stance for the social responsibility. This company always does feedbacks to the society. In this article, Wal-Mart donates 4 million dollars to a city program that offers summer jobs to young people. This behavior helps finance 3400 jobs. CSR can also motivate employees and strengthen brands, while also providing benefits to society. References: “Always low prices”. The Economist, 29 Feb. 2008. http://www.economist.com/node/10727908 Javier, C. Hernandez. “As It Campaigns to Build in the City, Wal-Mart Donates $4 Million”. The New York Times, 05 July. 2011 http://cityroom.blogs.nytimes.com/2011/07/05/as-it-campaigns-to-build-in- the-city-wal-mart-donates-4-million/ ...
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...Business Analysis Part I Beverly Mahone MGT/521 November 19, 2012 Robert d'Alessio Business Analysis Part I Making the decision to invest in a company requires an individual to research every aspect of the company before investing. As a mutual fund manager, I will make the decision if I would invest in the Wal-Mart company. Before making my decision to invest in the Wal-Mart company I will research the history of Wal-Mart and perform a SWOT analysis. The SWOT analysis will analyze Wal-Marts strength, weaknesses, the opportunities and threats the company faces. Wal-Mart History Sam Walton was a man who believed in leadership through service. After gaining experience in retail through his own small variety store Sam Walton open the first Wal-Mart in 1962 in Rogers, Arkansas (Walmart, 2012). Within five years Sam Walton and his wife owned 24 stores, ringing up $12.7 million in sales (Walmart, 2012). Two years later the Walmart stores Inc was officially incorporated. In 1970 Walmart became a publicly traded company, 1971 the first distribution center was opened, and in 1972 Walmart was listed on the New York Stock Exchange with 51 stores and sales of $78 million (Walmart, 2012). In the 80s the first Sam’s Club opened, the first Walmart super center opened, cash registers were replaced with computerized point–of–sale systems, and the company installed the largest private satellite communication system in the United States, linking the company's operations through...
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...Organizational Strategies Prepared by: Brian = AMGT4110 ABSTRACT When starting a new company, what better way to find a business strategy then to study those companies that are around you? These businesses have gone through the bad times and have made strides to continue growth into the future. After reviewing strategies from to large retail corporations, do their strategies have anything to offer to the new entrepreneur starting their first business? Wal-Mart Corporation has been part of most communities for many years being the stable for everyday shopping. They carry everything from home goods to a full grocery store and most even have some type of medical office (optician to wellness center), making Wal-Mart a one stop shop for every consumer. Based on my own personal experience, Wal-Mart has been the store I chosen when something was needed during odd hours, in a rush, or when they have a special sale. One thing I have always noticed is the wide diversity of its work force and it’s cliental. From old to young, from every race on earth, Wal-Mart tries to make everyone fell welcome once you enter the store. The Target Corporation has been around since 1962 opening its first store in Roseville, MN. While I do most of my shopping here, I have found that when one of the retail companies makes a change, the other is soon to follow. In the area I live, both companies are very close...
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