Wal Mart Essay

Submitted By renit
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Pages: 3
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Wal-Mart is commonly known as the world’s largest business, offers a broad spectrum of goods (linens, clothes, electronics, household goods, health & beauty items, etc.), with over 6100 world-wide locations and international net sales amounting to $140.9 billion (“Corporate”, 2014).
What is Wal-Mart’s secret weapon? Everyday Low Pricing – this was Wal-Mart’s motivation for being greater than profits. Wal-Mart clearly has chosen the low-cost producer route. They can provide goods and services at a lower cost due to the competitive advantage they hold over smaller competitors by achieving economies of scale large enough that others simply cannot compete (“Low-Cost”, 2014). This commitment has been the most vital element in Wal-Mart’s success story.
As mentioned above, Wal-Mart employs the tactic of economy of scale to gain a cost advantage over their competitors. This means that due to the volume and or bulk of materials they order, Wal-Mart can gain cost advantage over stores ordering smaller quantities of products from manufacturers (“Porter’s”, 2010). Additionally, Wal-Mart customers believe they can buy like products with a similar or better warranties than at specialty retailers (Thompson, 2014). Whether real or perceived, this strategy has helped Wal-Mart’s presence in the arena of big-box retailers such as Best Buy, Toys-R-Us, Home Depot, and more (Thompson, 2014).
It is hard to argue with the results that has been achieved by Wal-Mart. Wal-Mart has experienced $68 billion net sales growth over the last five years, delivered 30% earnings per share growth, and returned and estimated 12% to shareholders through dividends (“Corporate”, 2014). With that kind of growth, sales, and returns delivered to shareholders, the strategic plans of Wal-Mart appear to be delivering return to shareholders as promised.
Strengths
Development time and State-of-the-art training for all employees
Wal-Mart hires locally
Offers stock ownership and profit-sharing programs to employees
Strong community-based initiatives, such as scholarships, provides manpower and money for local fund raisers, churches and school benefits

Marketing campaign - Every Day Low Price

Rollback. Campaign

The ideal of the one-stop shopping experience Weaknesses
Does not have a formal mission statement. Employees and consumers do not know what their business is all about.

Few females in top management
No union involvement. It becomes a weakness because of job security.
Lobbying to expand into new markets. Many small-town stores and shops can suffer, the economic impact would be great on the small business.

Long wait in the checkout lines. May cause consumers to go other stores that are less congested.

No research and development is actively sought after. No site research before opening a store.

Walmart’s new initiatives include a redesigned walmart.com that aims to better integrate ecommerce with in-store purchasing, while capitalizing on logistical efficiency and inventory management. Walmart also plans to increase its international customers shopping experience by diversifying the shopping format by
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