Walmart Case Study

Wal-Mart Case Study

INTRODUCTION/CASE ASSIGNMENT:

Wal-Mart was founded by Sam Walton, with the first store opening in 1962, in Rogers, Arkansas. Wal-Mart is the largest retailer in the world. Currently Wal-Mart has over 10,000 stores worldwide. Wal-Mart is also one of the few companies worth billions without going public. Some of the services provided by Wal-Mart include groceries, check cashing, medical prescriptions, oil change and tire rotation. Wal-Mart has the world’s largest number of private employees, most of which are part time employees. Late in 2005, Wal-Mart announced a series of sweeping new strategic initiatives. This paper will analyze Wal-Mart's current strategy and challenges. Topics covered in this paper include threats and challenges facing Wal-Mart currently, priorities Wal-Mart CEO Lee Scott set in his “Wal-Mart: Twenty-First Century Leadership” address on 24 October 2005, initiatives outlined in the “Supplemental Benefits Documentation: Board of Directors Retreat FY06,” result of the Board Benefits Strategy document leak, Wal-Mart initiatives from the standpoints of strategy and public relations, Wal-Mart’s strategic social challenges from the standpoint of Bonini, Sheila M. J.; Mendonca, Lenny T.; Oppenheim, Jeremy M. When social issues become strategic. McKinsey Quarterly. 2006 no. 2, and how all the issues presented in 2003 case study are evident.

CURRENT WAL-MART THREAT AND CHALLENGES:

With the yeas of experience Wal-Mart is well ahead of their competitors in the U.S., but competition continues to increase from general merchandise retailers, such as target, warehouse clubs, such as COSCO, discount retailers, such as Ross, and supermarkets such as Safeway. With over 4,000 stores in the U.S., Wal-Mart does not have any room to expand in the U.S. Any more expansion could potentially take sales from each other. Wal-Mart attempted expansion internationally, but are closing two stores in 2013. Another threat Wal-Mart faces is public...