Essay WalMart Case Analysis

Submitted By Online2014
Words: 2475
Pages: 10
Open Document
Walmart Case Analysis

Situational (SWOT) Analysis
Internal Factors (Strengths & Weaknesses)
Strengths
With a store available in each corner, nationally and internationally, Walmart is a superpower retail brand. Using an immaculate pricing strategy, Walmart has imprinted on the minds of the consumers the “Everyday low prices, rollback, and special buy.” Walmart provides an immense variety of products that reaches all cultures and social levels. “Walmart helps people around the world save money and live better -- anytime and anywhere -- in retail stores, online and through their mobile devices. Each week, more than 245 million customers and members visit our nearly 11,000 stores under 71 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2014 sales of approximately $473 billion, Walmart employs 2.2 million associates worldwide” (Walmart, 2014).
Each Wal-Mart is strategically placed near a distribution center so that it will not take more than a day’s drive away. The company also has their own trucking fleet, which lowers the cost of transportation and external transportation sources. “Every distribution center supports 90 to 100 stores in a 200-mile radius” (Walmart, 2014).
By having a broad product/service portfolio, Walmart is able to fully serve its customers, filing nearly every void in the customer’s lives with enjoyable service. “Designed to provide a pleasant and hassle-free shopping experience, Wal-Mart Supercenters are enhanced with wide aisles, helpful signing throughout the store, departmental directories and 24-hour service. Supercenters are also equipped with a customer service desk and scanning registers for fast, efficient checkout service” (Royal Properties, n.d.).

Weaknesses
Walmart main weaknesses relates to negative publicity surrounding violation of employee’s rights and the “cannibalization of mama and papa stores” to expand the business in metropolitan areas. “While Wal-Mart isn’t the only big box store criticized for its policies, it has become a symbol for much of what is wrong with employers. Wal-Mart reported a net income of over $11 billion last year—surely plenty of money to remedy some questionable workplace practices—yet stories persist about wage law violations, inadequate health care, exploitation of workers, and the retailer’s anti-union stance. Altogether, some 5,000 lawsuits are filed against Wal-Mart each year, or roughly 17 suits per working day” (Workplace Fairness, 2014).
It has been longed argued that Walmart destroys the completion once it establishes a new store, especially in a metropolitan area. “Wal-Mart Stores Inc., which became the nation’s larg3est retailer by offering its customers low prices, tried to force competitors out of business with that policy, a judge ruled Tuesday” (Daily News, 1993). This has been a heated argument over the years, and one can find as many supporters as opponents to this idea. “Another argument is that Walmart destroys business around it. Anecdotal evidence of an occasional business taking a hit is presented to back this belief. But what are the real facts? The law of supply and demand dictates that when demand increases, so does the price. The evidence is clear: when a Wal-Mart opens, the price of commercial real estate around it skyrockets. The only reason for it is the increased demand from other businesses who seek to be near a superstore that functions as a center that attracts customers to the area” (Berke, 2013). However, one can still argue that these “other businesses” are most likely not mama and papa stores that will not have a slight chance to complete against the supergiant Walmart. External Factors (Opportunities and Threats)
Opportunities
Expansion, expansion, and expansion is the word when it comes to Walmart new opportunities. Walmart is doing extremely well on a national basis and perhaps the supergiant must switch its focus a little to its international ventures. Walmart needs to
Show More

Related Documents: Essay WalMart Case Analysis

Case Analysis Of Walmart

price-sensitive consumers and cut cost to the bone by performing superior efficient activities. Therefore, it was capable of lowering price as much as possible; it performed much better than its competitors in terms of price. Regarding growth strategy, Walmart employed product development by gradually introducing private label lines and diversification by opening close-out stores, Sam's Clubs and Supercenters. Its main target growth was international expansion by joint ventures with local large retailers…

Words 699 - Pages 3

Walmart Case Analysis Essay example

Walmart Strategic Recommendation As one of the largest retailers in the U.S. and one of the biggest multinational companies in the world, Wal-Mart is strategically positioned to continue to grow. In 2011, Wal-Mart’s net sales were nearly $20 billion, had over 8,400 stores in 14 countries, and employed nearly 2 million people worldwide. However, due to competitors such as Target and Amazon and a smaller global market, Wal-Mart is struggling to keep up with its annual 10% increase in sales. Currently…

Words 474 - Pages 2

Walmart Case External Analysis Essay

External Perspective Porters Power of Buyers: Low Power of Suppliers: Low Threat of new entrants: Low to medium Threat of Substitutes: Low Competitive Rivalry: high Conclusion (Opportunities and Threats): • It is useful to think in term of Opportunities and Threats as this information will form the basis of the Opportunity and Threats for the company Threats Economies of Scale Competitive Rivalry Threat of new entrants Opportunities Marketing Product Diversity • Adding new…

Words 339 - Pages 2

Walmart External Factors

Prof Carnaroli, I would think nothing could compete with Walmart. But this is not the case. I think of myself o the way home from work, in a hurry, tired and just want to go home instead of stopping at my local Walmart. I will have to walk to the back of the store just to get a gallon of milk. Knowing I will not pass by the vegetable bins, or the breakfast aisle, I would much rather stop at the local Dollar General store. Convenience and location is a major reason for me stopping. Dollar General…

Words 164 - Pages 1

Essay on SOC 331 Week 3 Assignment Beneficiaries Welfare Programs

includes three case studies for consideration from each perspective. Select one (only one) of these case studies as the focus of your initial post in this discussion. Then analyze the selected case study from the justice perspective which accompanies it and answer the following questions. a. If you select “Case Study 1.1 – Jacob Little and Walmart,” analyze it from the perspective of justice as a moral concept. Your analysis must address the following questions: § Did Walmart offer Jacob a…

Words 680 - Pages 3

Acc 205 Final Paper

Walmart Corporation (Financial Overview) William Jones ACC205: Principles of Accounting Instructor: Emmett Denham Date: 2/09/2015 While inaccurate accounting can cause misleading information about the company, every successful company should develop an income statement and balance sheet when monitoring financial growth. Also, formulating a horizontal and ratio analysis creates an accurate trend of the company spending behavior and debt-to-ratio venerability. A balance sheet can be considered…

Words 1565 - Pages 7

Essay on Walmart Practicum-Nikhil.

variables are the adjoining columns number of stores, net square footage, number of employees, etc. Upon performing analysis for the given data regarding Walmart’s operations in different countries across the world, it was observed that the two factors that most affect Walmart’s operating margins are the proximity of the respective country to the headquarters in Bentonville and the % of Walmart sales in supercenters. This can be confirmed by the fact that these are the only two variables that have a reasonably…

Words 578 - Pages 3

Week Five Assignment 1 Essay

this financial statement analysis I have decided to discuss the financial statement on Walmart, I will include the company overview, I will answer the following questions; What industry is in it? What are the main products or services? And who are its competitors? I will also include an horizontal Analysis of Income Statement and Balance sheet, I will show a 3 year analysis of the income and balance sheet, I will discuss the importance and meaning of an Horizontal Analysis as well as positive and…

Words 1138 - Pages 5

Case Analysis：Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc. Essay

Case：Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc. Financial Statement Case analysis 1． How do the retailing strategies of Sears and Wal-Mart differ? How does each firm operate their business/attempt to create value? The two companies differs in retailing strategy in two ways. 1. Credit sales boost sales greatly in Sears, not in Wal-mart Since 1992 when Arthur C. Martinez was brought on board to head Sears’s retailing operations, credit sales, especially through the use of the…

Words 3435 - Pages 14

Walmart in the 21st Century Essay

WALMART IN THE 21st CENTURY Introduction: The company Wal-Mart, founded by Sam Walton in 1945, is one of the most recognizable names in the retail sector in many countries of the world. Wal-Mart is having around 9320 stores and club locations in 15 countries employ 2.1 million associates, serving more than 176 million customers a year (Walmart, WalMart Stores). Sam Walton, in his autobiography said 
“If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity…

Words 2059 - Pages 9