Wal-Mart Stores, Inc. was first established and founded by Sam Walton at Rogers, Arkansas in 1962. The business growth of the retail store was momentous that within a span of seventeen years in operation, Wal-Mart had already topped annual sales at one billion US dollars. By the end of January in 2002, Wal-Mart has been recognized as the largest retailer in the world a salesrecord of US $218 billion. With this huge and continuous development, the retail store was eventually able to operate at the global level. The global operation of Wal-Mart was marked by the establishment of its first international store in 1991 at Mexico City (Govindarajan & Gupta, 2001).
Through its international reach, an estimate of one hundred million customers are said to visit a Wal-Mart storefound somewhere in the world. A total of 1.3 million associates worldwide are employed by the company and are distributed within its 3,200 stores in the United States as well at over a thousand other stores in Canada, Brazil, Mexico, Argentina, Puerto Rico, China, Germany, Korea and in the United Kingdom.
The business is actually divided into three main segments: Wal-Mart Stores, Sam’s Club andInternational Stores. Years of operation have indeed proved Wal-Mart’s effective techniques and management, resulting to significant business success. In this analysis paper, the internal and external factors affecting the company will be analyzed. Furthermore, its strategies supported by relevant sources and models will be described as well. Finally, recommended strategy based on the analyticalfindings will be developed.
As a retail company, Wal-Mart offers a wide array of products to the consumers. These include groceries, toys, apparel for women, men and children, jewelry as well as other hard goods; all of these product lines are sold at reasonable and generally affordable prices. The services of the company on the other hand, are centered on the operation of multipleretail stores both in the United States and international branches Other subsidiaries of the company are also found in Mexico, Brazil and China. The company, while it operates in different states and countries apply the standardization strategy where products and services offered is delivered in a uniform manner. Thus, segmentation of the company is mainly concentrated on the types of goods ratherthan on consumer types.
II. Strategic Analysis
The company possesses a strong brand name in the retail industry that represents both value and quality. This strength emphasizes Wal-Mart’s capability to attract new customers and maintain customer loyalty. In addition, with the diversity of its products offered in one retail store, company also provides customers yet anotherimportant strength, which is convenience.
The company employs a focused strategy on its human resources, enabling its employees to be shaped into productive and efficient service providers. By investing on the staff’s training and development, Wal-Mart is able to acquire a workforce that is loyal to the company, its set goals and customers.
Wal-Mart is a global company that is capable of operating notonly in the local setting but in other parts of the world as well. This is considered a strength as it helps in increasing the size of the company’s market coverage as well as diversity. This also helps the companies adapt successfully even in foreign setting.
Wal-Mart utilizes the most modern technologies available in order to handle and manage it local and international logistic operations.Information technology also facilitates the effective procurement of the company.
The company is considered one of the largest retailer in the world as it manages not only a huge array of product lines but also serve a considerable consumer population both in local and international sectors. While the company may have the tools, strategies and technologies that can...