Walmart Corporate Strategy South Africa

5456 WordsAug 28, 201222 Pages
Question One: Identify an organisation of your choice and provide a brief description of the organisation in terms of issues such as history, industry, products and services. Walmart was founded in 1962, with the opening of its first store in Rogers Arkansas. In 1969 the company was incorporated as Wal-Mart Stores Incorporated. In 1970 the company was floated on the New York Stock exchange. By 1980 the company had 276 stores in 11 states under the Wal-Mart banner. The first store that was opened outside of the USA was near Mexico City in 1991. This signalled the start of Wal-Mart being an international company. Currently Wal-Mart operates in 27 countries under 69 different banners. We recently saw the acquisition of Massmart in…show more content…
Due to the fact that Walmart has the largest turnover in the retail sector, they possess the financial ability to expand into various countries and different markets without borrowing from financial organisations to do so. (Economic) 2. The most powerful retail brand in the world economy. Walmart has the largest turnover of any retail company in the world. It therefore has the greatest buying power of any retail company. It is because of this attribute that Walmart is able to control market pricing. (Competitive) 3. Very loyal customer base. If we look at the mission statement of Walmart, it is no surprise that it also has a very loyal customer base. Everyday lowest pricing is one of the cornerstones of the Walmart philosophy, and once customers have become accustomed to these prices they will in general not be swayed to purchase elsewhere. (Cultural) 4. Locality of stores central to buying public. Walmart on every corner? Walmart does not only have the large retail outlet such as the Game/Builders Warehouse, but also has smaller outlets similar to the SPAR outlets. Therefore Walmart will enter a specific area and drive out the smaller competitors to capture that customer base. (Demographic) 5. Loyal staff. Permanent staff enjoy above average benefits. Walmart has always been opposed to unionising their staff members. However once an employee becomes a permanent employee of the Walmart group, he/she enjoys above average

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