Walmart Strengths And Weaknesses

As the world’s largest retail store in the world, Walmart wants to be in every market that they can be prosperous in. They know they rule the United States market, so why not try to expand overseas and dominate those markets as well. Now that they have reached limits on expansion here in the U.S., the next step was to test the water in other nations. As they began to go international, there were many critics saying they will never make it because their business practices and culture wouldn’t work in other countries. Yet the company’s globalization efforts progressed at a rapid pace. Its more than 4,263 international retail units employ more than 660,000

There are little threats to Walmart because it’s such a big corporation. One threat is its competitors. Because Walmart sells the same stuff as Target and Kmart, Walmart has to compete. They have to compete with the other stores prices, goods, and employee

SUPPLY CHAIN MANAGEMENT: Effective supply chain management is one of the most important operational strategies that allow company to enjoy sustainable competitive advantage. More than the manufacturing expenses the distribution costs are high. If a retail firm has a proper supply chain management it can cut down the cost and have a competitive advantage of providing goods at lower cost. The cross docking concept that was introduced by the Wal-Mart was one of effective concept.

Global competition has a direct impact on Wal-Mart. Global companies offer competition for consumer business and companies within the United States and other countries who compete with Wal-Mart. The global competition for consumer business primarily takes place in the e-commerce domain that Wal-Mart dominates. Wal-Mart offers their consumers a convenient one-stop website with all the merchandise and products offered in the store, and some that are not. The exchange is significantly sped up by the convenience and availability of the internet. The internet allows transactions to take place at a faster pace than the standard face-to-face or telephone method. Target, a major competitor of Wal-Mart, also has a Website that is reached by consumers all over the world. This added competition, especially from a competitor in the same industry, forces Wal-Mart to keep their prices low while offering

For better or for worse, Wal-Mart dominates the retail industry. With annual revenue of more than $315 billion, Wal-Mart ranks No. 2 on the Fortune 500 list of the largest U.S. corporations. Wal-Mart is also the largest corporate employer in the nation, with more than 1.3 million people on its payroll (only the federal government employs more people). On the global front, Wal-Mart operates nearly 3,000 international stores, buys products from 70 countries, and generates about 20% of its sales from abroad. Given Wal-Mart’s aggressive expansion plans, those numbers are only likely to grow.

In just over half a century Wal-Mart’s global reach had gone from just one store all the way to 11,450 stores in 27 countries. This is one way of saying that Wal-Mart is a multinational company and that its globalisation is only limited by its host’s country. The current increase in globalisation has accelerated due to the rapid growth of multinational companies such as Wal-Mart.

However, despite its large size, market share financial power and the fact that it is difficult to other retailers to compete with the company, Wal-Mart still faces competition from other companies such as Costco Wholesale Corporation, Target Corporation and Dollar General Corporation. Moreover, Wal-Mart competitors can be divided into two broad categories domestic competitors who constitutes of both direct and indirect competitors and international competitors. Founded in 1962, the company is committed to driving down cost out the supply chain to deliver everyday low prices. As a result of this commitment, Wal-Mart is a household name gaining a competitive edge over its competitors. Wal-Mart strives on three strategies in the attempt to keep their customers.

Before reading this book, I had no idea about the story of Walmart or who its founder was or anything like that. All I knew was that Walmarts are huge and everywhere you go. After reading this book, I learned that Walmart really did start from the bottom and came out of nowhere. In addition, I learned that a reason Walmart was successful was because Sam Walton wasn’t a risky man like most greedy business owners who want to make as much money as fast as possible “Sam never did anything in size or volume until he actually had to. He played it close to the belt”(Walton 89). He was careful with his money and considered all his options before making any decision. Another thing that really stood out to me was his policy on giving back to his employees

Wal-Mart is the best friend of all social classes in the American society. It provides enormous variety of high quality goods for low prices. Wal-Mart's products are affordable for everyone, including people with low wages. Yet, Wal-Mart is not the best friend of its own employees nor the environment.

That our country’s financial health has deteriorated continuously over the years is something we cannot contest. Many people in America have lost their jobs, hence, have given up their homes and other property. An effect caused by companies not making their numbers like in previous years and consequently going out of business. While Latinos are being blamed for stealing Americans’ jobs, a well-known giant in the business world, doing business as Wal-Mart, is earning extravagant profits with minimal operational costs and expenses. An empire whose apparent purpose is to help consumers save money, but is annihilating competitors concurrently. Furthermore, as consumers economize, they are contributing to the ongoing success of a tycoon who seems

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.

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.

Competition among retailers is aggressive, as the demand side of the industry is driven by consumers who expect to get the best value for their money. “Competitive advantage is anything a company has, or does better, that customers value but the competition cannot match” (Romero, 2005). Walmart has a sustainable competitive advantage over other retailers, largely due to their centralized focus of cost leadership and differentiation strategies.

At the first, Wal-Mart only operates his business at one country. However, Wal- Mart became more integrated and independent by expanding to the international. In 1991 Wal-Mart start expends the business at international by level which includes 26 countries outside of the United State such as Mexico, China and Canada. Now, Wal-mart totally has more than 6100 stores at international. This is the step take by Wal-Mart to improve and maintain their achievement outside of the home country. Wal-Mart’s strategy expends their market at international level give a lot of benefit to their business.

The success of Walmart is mainly due to its logistics. Every year they move thousands of products from manufacturers to the Walmart distribution centers, and from there they are shifted to the Walmart stores.