Walmart : Market For Affordable And Convenient Retailing Throughout The World

The purpose of this business report is to gain familiarity with Wal-Mart and to learn about the different aspects that make Wal-Mart a successful company. This report gives an in-depth analysis of the company history, services and products provided, the company philosophy, business methods, organizational structure, and financial and competitive analysis.

Walmart is known throughout the entire world as one of the most popular chain department stores. Actually, most have probably visited a Walmart store in the past week. Though Walmart stores seem to be a normal part of life the average person more than likely has little knowledge that pertains to Walmart’s success and business culture. This paper will guide one through the history of the organization, why Walmart is successful, what could threaten or open new opportunities, and how might they hold a competitive advantage.

Walmart is the biggest retail chain in America (Isidore), and if Walmart were its own country, it would have the 23rd largest GDP on the planet (“Walmart”). In fact, Walmart not only has more sales than second place retailer Costco, but they have five times their sales (“Walmart”). Yet, their overall impact is found to be negative. How is this possible? Well, after some thorough investigation and research the answer becomes blatantly obvious. Whether it is financially or economically, Walmart has not had the overall positive effect it was meant to contribute to our society.

They are also able to learn which products work in a particular market and which do not by having robust information system technology. Walmart uses a system called Retail Link which tracks inventory, buying trends, and orders more products. An AMR report ranked Walmart as having the seventh best supply chain in the country. Tesco, Walmart’s competitor, was another retailer mentioned, and it ranked number fifteen (Flatknowledge). The size of Walmart permits them to be able to test many different designs, products, and services, without risking too much sales or profit.

Wal-Mart is the world's largest retail and departmental store chain. Having business operations in 27 countries with 69 different brand names, Wal-Mart is able to serve a huge number of customers per day. Wal-Mart is the fastest growing and the most successful retail brand in the world. The factors which make it the strongest brand in its industry include large customer base, sound financial strength, strong brand image, and huge supply chain network. Wal-Mart has certain weaknesses in its operations and business setup like low acceptability of certain products, high employee turnover, and less recognition of newly introduced brands. These weaknesses can be overcome by availing attractive opportunities from the market and investing more in the most profitable areas. Wal-Mart faces the biggest threat from its competitors and ever-changing customer preferences.

Wal-Mart is arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail

Ans:Wal-Mart,Inc runs a chain of large, discount department stores.it is the world’s largest public corporation by revenue. Walmart is the largest private employer and the largest grocery retailer in the United States. Walmart is one of the best known industries all over the world. Its concentration of a single business strategy is the basis of its success over the decades by this strategy without having to rely upon diversification to sustain its growth and competitive advantage. The leading marketing strategies of Wal-Mart are low prices, service and smile. However by adapting this strategy, it has risked itself by putting all of a company’s egg in one industry basket. While its global strategy worked elsewhere, the results were bad in Germany and Korea that Wal-Mart withdrew from those countries.

In terms of ‘Identify Basic Appeal’ which concerns suitability of climate, restriction on certain items, access to material, and others – Walmart has used this step of the market screening process for much of its international business ventures (Wild and Wild, 2013, p.301). For instance, in Brazil the tropical temperature (which normally does not fall below 20°C throughout the year) – has apparently influenced the type of apparel that the company sells in its stores (World Travel Guide, 2016; Walmart, 2016). Because, within the stores of Walmart in Brazil, one can find clothing made from fabric - as in, cotton and linen, which are material suited for the warmer weather found in Brazil (Walmart, 2016). Whereas, for a country like Canada – within Walmart stores, clothing can be found that are tailored for each of the four seasons, thus one will be able to find winter jackets and shorts in line with the seasons that they are most suited for. As for restricted items, in Ontario (Canada), since the retailing of liquor presently falls under the purview of the Liquor Control Board of Ontario (LCBO) - one would not find alcohol base beverages on the shelves of Walmart or being marketed by the entity (Alcohol and Gaming Commission of Ontario, 2010). However, on the websites of Walmart in the US, there are several options available as it relates to the purchase of alcoholic beverages (Walmart, 2016). As it relates to access to material, when

Walmart is the largest retailer in the world. Sam Walton the founder of Walmart, opened the first Walmart store in Rogers, Arkansas in 1962. Sam Walton was born in 1918 in Oklahoma. Sam Walton started of working for the famous retailer we still know today which is JC Penney. Walton then gave up his job and decided to open up his own retail store. He first purchased a franchise in Arkansas. Sam Walton began offering huge discounts on prices, he became successful due to the cheap prices made affordable for customers. Due to his success Walton owned another store in 3 years. By the year 1969, Sam Walton had owned eighteen Walmart stores. Around the late 1970s, the Walmart had added more services into their store such as a pharmacy and an auto service center. Walmart continued to grow due to small towns demanding Walmart’s locally. At the time Walmart was offering low prices, customer satisfaction guaranteed, and store hours that accommodated for the customer’s needs. Walmart opened all night, which made it easier for people who worked during the day. By 1984, there were six hundred and forty Walmart stores in the United States alone. Walmart encountered a great loss in 1992, when the founder of Walmart died Walton. Even after his death Walmart continued its growth by moving business overseas. In 1992, Walmart created its first international store which was in Mexico. Then in the year 1994, Walmart had expanded its franchise into Canada. In 1997, Walmart then began to create

Multination corporations are the business whose primary goal is to maximize profit within a competitive environment (Preston). Virtually all of the activities of a multinational corporation can be explained as more or less logical attempts to achieve this dominant end. In process of achieving this dominant end Multinational Corporation put a side their moral and ethical standards. For example, Walmart is a multination corporation they have more than 11,098 retail units in 27 countries (Walmart Corporation). But when Walmart was expending to Mexico, their primary focus was to maximize profit and beat its competition (Barstow). Their Walmart de Mexico was the most profitable unite for Walmart Corporation. But when they were planning to set up Walmart in Mexico, to get the permits they bribed mayors and city council members, obscure urban planners, and bureaucrats who issued permits – basically anyone with the power to thwart Walmart’s growth. Walmart’s statement of ethics says, “We do not tolerate, permit, or engage in bribery, corruption, or ethical practice of any kind (Walmart Corporation).” In their relentless pursuit of growth, some of Walmart’s chief executives, publicized commitment to the highest moral and ethical standards (Barstow).

It’s no lie that Wal-Mart is that the top of its prime. Its enormous and rapid expansion has changed towns and cities alike. Wal-Mart is the largest retailer store in America, with more than 11,528 store operating worldwide (Wal-Mart 2016 Our Locations). Running since 1962, Wal-Mart had become the major retail store by 2001 “with $191 billion in sales” (Carroll and Buchholz 772), with high discount prices and operating four different divisions including Sam’s Clubs warehouse. Many see Wal-Mart as a good and honest company however to others this is not the case.

Wal-Mart dominates the American retailing industry due to a number of factors (Smith & Young, 2004). Its business model has been very effective in beating the prices of its rivals. Wal-Mart has made strategic attempts in its formulation to dominate the retail market where it has its presence. The company has grown by expansion in the U.S., as well as internationally. As a result, Wal-Mart has gained a widespread name, recognition, and customer satisfaction in relation to branching into new sectors of retailing. Wal-Mart strives on three generic strategies consisting of focus strategy, the differentiation strategy, and overall cost leadership. However, its low prices show both good and bad outcomes for society (Ferrell, Fraedrich, & Ferrell, 2013).

Wal-Mart Stores Inc. helps individuals around the globe spare cash and live better - at whatever time and anyplace - in retail locations, online and through their cell phones. Every week, more than 245 million clients and individuals visit our almost 11,000 stores under 65 flags in 28 nations and e-trade sites in 11 nations. With financial year 2015 net offers of $482.2 billion, Wal-Mart utilizes 2.2 million partners around the world. (Wal-Mart Corporate) Wal-Mart is a superpower in the business world and has been that way for 50+ years. Understanding how it got to this point and how it has maintained its successful business model starts with its

Although Walmart is a global leader in the retailing industry, it is notorious for its community and labor relations problems, as well as numerous public relations scandals. Every year we hear more about the extensive labor relations problems, such as wage issues, and most shockingly- workplace rights abuses. Every action the company takes leaves an imprint on the company’s brand image and it affects its future. Walmart claims that respect for employees is at the very essence of the organization; however it seems that they are neglecting this founding principle. Although their new CEO has made some significant improvements within the last year, it is still evident that while they go out of their way to satisfy the needs of their investors and consumers, they refuse to meet the needs of some of their most important stakeholders, such as employees and suppliers. In determining the public affairs strategy of Walmart, there are many market and non- market stakeholders who are very much impacted by what Walmart does. Organizations derive their reputation from the way their behavior, actions and performance are perceived by all of their stakeholders. The stakeholders’ perceptions are formed by the amount of effort the company puts into communication, engagement practices and relationship building. For the purpose of this assignment, I will focus on three main groups that I think are of the upmost significance, require change and a better understanding: the

Walmart is a powerful retail brand. It has a reputation for value of money, convenience, and a wide range of products all in one store. Sam Walton’s original vision to run a successful chain of large discount and department stores has come true, to say the least. Walmart’s greatest strengths are the consumer understanding of low prices, their market clout, their competence in information technology, and their wide store and distribution network. These strengths – combined with several others, are what make Walmart the success that it has become today.