Swot Analysis

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Category: Business and Industry

Date Submitted: 09/06/2011 11:29 PM

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Wal-Mart's history is one of innovation, leadership and success. It started with a single store in Rogers, Arkansas in 1962 and has grown to what is now the world's largest - and arguably, the most emulated - retailer. Some researchers refer to Wal-Mart as the industry trendsetter. Today, this retailing pioneer has annual revenues of over $100 billion, 3,000 stores and more than 750,000 employees worldwide. Wal-Mart operates each store, from the products it stocks, to the front-end equipment that helps speed checkout, with the same philosophy: provide everyday low prices and superior customer service. Lower prices also eliminate the expense of frequent sales promotions and sales are more predictable. Wal-Mart has invested heavily in its unique cross-docking inventory system. Cross docking has enabled Wal-Mart to achieve economies of scale which reduce its costs of sales. With this system, goods are continuously delivered to stores within 48 hours and often without having to inventory them. This allows Wal-Mart to replenish the shelves 4 times faster than its competition. Wal-Mart's ability to replenish their shelves four times faster than its competition is just another advantage they have over competition. Wal-Mart leverages its buying power through purchasing in bulks and distributing the goods on its own. Wal-Mart guarantees everyday low prices and considers them the one stop shop.

Wal-Mart discount stores are general merchandise stores averaging 102,000 sq ft. Wal-Mart supercenters are an average of 197,000 sq ft and consist of general merchandise and a full service grocery store. This was a good approach for Wal-Mart because it helps the consumer get multiple shopping trips done in one shot. Also, consumers tend to spend more the more the store offers. Wal-Mart neighborhood markets are grocery stores the average 42,000 sq ft.

The three other parts of Wal-Mart Inc are Sam’s Club, Wal-Mart international, and Private label brands....