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RESEARCH ANALYSIS FOR WAL-MART

GEOFFREY NGIGI

MG 302

April 16, 2018

Walmart was founded by the Walton’s. Co-founder Sam M. Walton opened a franchise Ben Franklin variety store in Newport, Arkansas in 1945. His brother, James L. Walton, opened another store in Versailles, Missouri the following year. Walmart was incorporated in 1969 in Delaware. In 1962, Walmart’s first discount store, Discount City, started operations in Rogers, Arkansas. The first Sam’s Clubs were established in 1984. Walmart’s first supercenter format started operations in 1988. Walmart is a mass merchandiser. It’s the world’s largest retailer. It has over 11,100 stores in 27 countries. With a market cap of over $275 billion, it ranks among the top ten companies in the world. This analysis is to look at Walmart business environment and recommendation on the company

Walmart is looking at different strategies to maintain its presences for a long term. It intends to develop the people in a way that they believe that Walmart is the only store that can satisfy their needs. They are driving productivity loop in a way that they are able to receive the latest information. With the increase in online sales, Walmart is planning to win in the global e-commerce technology area. It is also planning to revive the customer by focusing in different culture, lead in environment conservation and social issues. These particular strategies proved to make Walmart one of the top retailers. Walmart has many competitive advantage, to Walmart, nothing is more important that continuing to deliver a powerful message to their people, both the management and higher organizational levels.

Walmart's center of attention is on developing leadership skills and talent through training programs and business series such as the Walton Institute. Walmart plans to recruit exceptional new talent where it is needed. Walmart has huge diversity in product which allows customers to find variety of products. It has convenient prices in all there location which is affordable to low income earners. Its strong market presence makes it visible to many customers. There strong financial performance in the stock exchange makes it visible and trusted by customers. Due to its cost, pricing advantages over rival and good supply chain it has managed to increase its sales.

The major weakness that Walmart has is brand image which makes it to have a weak reputation. Walmart has also low global presences and is behind their rivals in e-commerce. The major opportunity that the company has is a great global expansion in new geographic areas, increasing online sales, and many business strategic alliances like acquiring rival firms. Major threats that affects Walmart is intense competition, laws and regulations like trade policy which are not good for business, cultural barriers, current economy, slow market growth, and transport of distinctive competency

This analysis shows that Walmart must prioritize using its strengths to exploit opportunities in the global retail market. The company’s weaknesses and threats should be secondary priorities. Walmart can improve its HR management standards and product quality standards to improve firm performance. Also, the company must continue expanding its business to exploit economic opportunities in developing markets. Walmart’s strengths based on its global organizational size, global supply chain, and high efficiency of the supply chain can support aggressive global expansion in foreign markets.

Reference

"Walmart 2012 Annual Report." Online posting. Walmart Corporate. Wal-Mart Stores, Inc., 2012. Web. 12 Feb. 2013. http://stock.walmart.com/annual-reports

Statista (2016) Available at: http://www.statista.com/statistics/240481/food-market-share-of-the-leading-food-retailers-of-north-america/

Lu, C. (2014) “Incredibly successful supply chain management: how does walmart do it?” Tradegecko, Available at: https://www.tradegecko.com/blog/incredibly-successful-supply-chain-management-walmar

The World’s Most Valuable Brands (2015) Forbes, Available at: http://www.forbes.com/companies/wal-mart-stores/

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Answer 1

Walmart was founded by the Walton’s, Co-founder Sam M. Walton opened a franchise named as
Ben Franklin variety store in Newport, Arkansas in 1945. His brother, James L. Walton,
opened another store in Versailles, Missouri the following year. Walmart was incorporated
in 1969 in Delaware. In 1962, Walmart’s first discount store, known as Discount City, started its operations in Rogers, Arkansas. The first Sam’s Club was established in 1984, Walmart’s first supercenter format started operations in 1988, Walmart is a mass merchandiser and also the world’s largest retailer. It has over 11,100 stores in 27 countries With a market cap of over $275 billion, and ranks among the top ten companies in the world. This analysis is to look at Walmart business environment and recommendation on the company.

Walmart is looking at different strategies to maintain its presence for long term and it intends to develop the people in a way so that they believe that Walmart is the only store that can satisfy their needs. They are driving productivity loop in a way so that they are able to receive the latest information. With the increase in online sales, Walmart is planning to win in the global e-commerce technology area and also planning to revive the customer by focusing in different cultures, lead in environment conservation and social issues. These particular strategies proved to make Walmart one of the top retailers. Walmart has many competitive advantages, according to Walmart, nothing is more important that continuing to deliver a powerful message to their people, both the management and higher organizational levels.

Walmart's center of attention is on developing leadership skills and talent through training programs and development and business series such as the Walton Institute. Walmart plans to recruit exceptional and new talent wherever. Walmart has huge diversity in products which allows customers to find variety of products. It also has convenient prices in all the locations which is affordable to low income earners. Its strong market presence makes it visible to many customers. There strong financial performance in the stock exchange makes it visible and trusted by customers. Due to its cost, pricing advantages over rival and good supply chain it has managed to increase its sales at every level of the business.

The major weakness that Walmart possess is brand image which makes it to have a weak reputation. Walmart also possess a low global presences and is behind their rivals in e-commerce. The major opportunity that the company has is a great global expansion in new geographic areas, increasing online sales, and many business strategic alliances like acquiring rival firms. Major threats that affects Walmart is intense competition, laws and regulations like trade policy which are not good for business, cultural barriers, current economy, slow market growth, and transport of distinctive competency.

This analysis display that Walmart must prioritize using its strengths to exploit opportunities in the global retail market. The company’s weaknesses and threats should be secondary priorities. Walmart can improve its HR management standards and product quality standards to improve the firm's performance. Also, the company must continue to expand its business to exploit economic opportunities in developing markets. Walmart’s strengths based on its global organizational size, global supply chain, and high efficiency of the supply chain can support aggressive global expansion in foreign markets.