Company of Wal-Mart

1105 Words Jun 18th, 2018 5 Pages
Wal-Mart Stores Inc. is the largest retail company in the United States and has been ranked number one on the Fortune 500 Index by Fortune Magazine. However despite the fact that the company is big, it has not survived or evaded the normal challenges that corporations go through, irrespective of whether private or public (David, 2012). For instance, the living wage bill of the United States resulted in Wal-Mat threatening to close down its stalls in the United States. Due to its resolution to cutting down on its employees, Wal-Mart has also been characterized by customer complaints as a result of empty shelves.
This served as an advantage to the competitors such as the Kohl’s, Safeway, Target, and Walgreens. In February this year, 2013,
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The recent years have also seen Wal-Mart exit from the Canadian, German and South Korean markets.
Below is a Competitive Profile Matrix for Wal-Mart against two of its main competitors, Kohl, and Target. Wal-Mart Target K-Mart
Critical Success Factors Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score Product Quality 0.10 4 0.40 4 0.40 3 0.30
Price Competitiveness 0.05 1 0.05 1 0.05 1 0.05
Management 0.50 3 0.15 4 0.20 3 0.15
Financial Position 0.05 4 0.20 3 0.15 2 0.10 Global Expansion 0.10 4 0.40 1 0.10 2 0.20
Inventory Systems 0.05 3 0.15 3 0.15 3 0.15
Market Share 0.05 4 0.20 3 0.15 2 0.10
Customer Service 0.10 3 0.30 4 0.40 3 0.30
TOTAL 1.00 1.85 1.60 1.35

Rating values are as follows (for both matrices):
1 => high level of weakness
2 => low level of weakness
3 => low level of strength
4 => high level of strength.
External factor evaluation matrix for Wal-Mart Inc
Key External Factors Weight Rating Weighted Score
Opportunities
1. Conversion of regular stores into supermarkets 0.10 3 0.3
2. Economic conditions cause greater demand for low priced products 0.07 2 0.14
3. Consumers increased use of mobile and social marketing to increase purchasing 0.05 2 0.10
4. Growth plan to open new supercenters in United States and abroad 0.10 4 0.40
5. Increase in online shopping 0.08 3 0.24
6. Wide

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