Wal-mart Case Study

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Wal-mart Case Study

Walmart Inc.

 

Type of Industry

Retail

Headquarters

Bentonville, Arkansas

Sales/Revenue

514.4 billion USD

Area Served

Worldwide

Number of Stores

over 11,300 retail units

Competition

1) Amazon.

2) Alibaba.

3) Home Depot.

4) IKEA.

5) Costco.

6) Lowe's.

7) eBay.

USP

Global presence and diversified product line

Target Group

People of all ages

Products

Retail products

Website

www.Walmart.com

Wal-mart Case Study Introduction

The American multinational retail giant Walmart Inc. (Walmart) has been considered as the leader in the global retail industry. Operating in a chain of hypermarkets, discount departmental stores, and grocery stores, Walmart has been able to establish a strong presence worldwide. The Walmart case study should be considered important in terms of understanding the factors that have contributed to the success of Walmart on a global basis. A SWOT and PESTLE analysis is essential for strengthening the Walmart case study. These analyses are also necessary to ascertain how a business through the implementation of some specific strategies can eventually benefit from growth and development opportunities.

Wal-mart SWOT Analysis

Strengths

There are certain specific factors that have added to the strengths of Walmart in a specific manner. In this respect, the Walmart case study has revealed that, the global organizational size of Walmart has provided opportunities to Walmart to sustain its profitability and market hold. Moreover, the Walmart case study has revealed that, the global organizational size has provided the business with a strong financial position that has been employed in funding the growth and expansion of Walmart’s business in a thorough manner. The global presence and expansion of Walmart has also introduced the Company to a strong global supply chain that has provided the Company with business resilience that has protected the Company from specific market risks, which include the risk of disruption in local supply chains. Moreover, the Walmart case study has revealed that inclusion of innovative technologies for managing the supply chain has also strengthened Walmart’s global business.

Weaknesses

One of the primary weaknesses of Walmart, as revealed by the Walmart case study, is that, the Company, owing to stiff competition within the retail industry, has to operate with thin profit margins. This thinness in profit margins limits the financial growth prospects of Walmart. Moreover, the easily imitable and easy to copy business model of Walmart has also been considered as a primary weakness of the Company. As revealed by the Walmart case study, the easily copied business model of Walmart makes it easier for competitors to imitate the business processes and growth and expansion strategies of Walmart. Also, the competitive disadvantage against high-end specialty sellers has also be pointed out as one of the chief weaknesses of Walmart.

Opportunities

Walmart, as the Walmart case study reveals, is provided with some specific growth and business development opportunities. For instance, the Company has the opportunity to expand its business in developing countries and in specific emerging economies where there is an inclination among different customer segments to gain access to brand retails. Moreover, it has been observed that the Company has been provided with the opportunity to bring about improvements in its human resource management practices in order to secure the competitive advantage over other key players in the industry in terms of utilizing the potential of the workforce to the full.

Threats

The Walmart case study reveals that, Walmart is faced with risk of losing the profitability in its business owing to the shift in the choice of consumers in terms of selecting food items. Walmart, as a retail giant, deals with junk foods too, but the gradual shift of customer preferences in terms of selecting healthy foods over junk foods, can eventually pose a serious threat to Walmart’s global business. Moreover, the highly aggressive competition in the retail industry should also be considered a serious threat to Walmart’s global business.

Wal-mart PESTLE Analysis

Political Environment

The political environment plays a crucial role in determining the fate of a business. This holds true for Walmart. The Walmart case study reveals that a highly stable political environment in majority of countries of operation and in the host country has provided opportunities to Walmart to enhance the process of its business growth and development on a global basis. Moreover, the Walmart case study reveals that thorough political support for globalization has also helped the Company in penetrating deep into new markets and to expand its business.

Economic Environment

The Walmart case study has revealed that majority of countries in which Walmart operates are characterized by a stable and growing economy. This economic growth has propelled success for Walmart in terms business growth and expansion. Moreover, the continuous economic growth of developing countries has also provided opportunities to Walmart to expand its business on a global basis. Moreover, the decrease in the rate of employment in the United States has helped the Company to utilize the benefits of having a productive workforce.

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Social/Socio-Cultural Environment

Certain important social and cultural factors have contributed to the growth of Walmart’s global business. In this respect, it must be noted that a healthy lifestyle trend among majority of consumers worldwide has provided the Company with the opportunity to indulge in product diversification, which, in turn, has provided opportunities to the Company to draw the attention of newer customer segments. Moreover, cultural diversity trend has also propelled the demand for newer products that were once considered to be related to specific cultural demands in specific societies. Moreover, urban migration has also provided opportunities to the Company to enhance its customer base on a global basis. Also, it should be noted that urban migration has also provided the opportunity to Walmart to identify, recruit, and retain more talents.

Technological Environment

Technological advancement, and specifically the advancement in the Internet technology has provided Walmart with the opportunity to enhance its online presence and to incorporate more innovation in its business through the incorporation of ecommerce strategies that will help the Company to reach out to a wider demography of customers worldwide. Moreover, increasing business automation has also enhanced the operations of Walmart on a thorough basis. Besides, enhancement in business analytics has helped the Company to understand its customer choices and preferences better. This has helped the Company to cater to the consumption needs of its customers thoroughly and effectively.

Legal Environment

Legal factors like food safety regulations have compelled Walmart to showcase and sell more healthy foods, and this has enhanced the Company’s reputation as a customer-oriented business entity. Moreover, improvements in employment regulations have enhanced the human resource management system of Walmart, and this, in turn, has alleviated the rate of lawsuits by employee, which, in the past, had affected the Company’s global business.

Environment Factors

A strong emphasis on corporate social responsibility practices has helped Walmart to include more environmentally friendly items in its product line, and this has again added to the market reputation of the Company in a thorough manner. Besides, global business sustainability trend has also compelled Walmart to make itself more environment-oriented business entity.

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