Walmart

Case 12

Wal-Mart Stores Inc.: Dominating Global Retailing

Summary

Wal-Mart is the world’s largest public corporation by revenue, largest private employer and largest grocery retailer. They provide a wide array of products at reasonable prices with a responsibility on guaranteed customer satisfaction with the best products and services as well as effective use of technology to maximise operational efficiency. Wal-Mart is dedicated to recruit, reward and retain employees of good moral standing by providing benefits for great performance, clean environments to work in, and equal opportunity for everyone. The Wal-Mart team is dedicated to everything that they are seen as a universal competitor.

Questions

1) What strategies can Wal-Mart take to further their growth?

2) How can Wal-Mart maintain its top position in the industry?

3) Is Wal-Mart able to survive in the industry in the next 10-15 years?

External Analysis

General Environment

Economic

The general weakness in the world economy has a negative impact on consumer’s expenditure. Disproportionate levels of income and consumer spending in developing countries like India and China impacts growth of global companies. Foreign exchange rates affect global sourcing and pricing policies on a daily basis.

Socio-Cultural

Language and cultural factors is a barrier to globalization. Different countries have different cultures which give difficulties in culture adaptation. As the difference in customs and cultures exist in many places, it creates different customer’s preferences that might match with company’s culture, thus market penetration to certain countries may be a challenge.

Global

There are new and developing supermarkets. Leading global retailers are mostly founded in the West.

Technological

Technology continues to become cheaper and have more practical applications. Strong capability in basic research and developments in technologies will allow the firm to produce...