Walmart

BRIEF INTRODUCTION

Wal-Mart is a company based in North America but has become the largest retailer and is larger than any other retail chain in the world. It is clear that Wal-Mart is growing and gaining international power at an alarming rate. Wal-Mart journey from humble beginnings in the 1960s as a folksy discount retailer in the boondocks of Arkansas to a global retailing juggernaut in 2008 was unprecedented among the company of the world: Sales were expected to exceed $400 billion in fiscal 2009. Wal-Mart provides general merchandise: family apparel, health & beauty aids, household needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes. Also, the company runs a pharmacy department, Tire & Lube Express, and Photo processing center as well.

There are also many secondary issues surrounding the Wal-Mart Corporation and its large growth. It is the largest retail company in the United States and has been ranked number one on the Fortune 500 Index by Fortune Magazine. Wal-Mart has four parts to their corporate strategy.

1. Dominance in the Retail Market

2. Expansion in the U.S. and International Markets

3. Creation of Positive Brand and Company Recognition

4. Branch Out into New Sectors of Retail

In recent years, Wal-Mart is very active in the market, as the world's largest multinational retailer‟s enterprises. There are more and more stores all over the world, more and more competitors at the same time, if the company wants to maintain their position in the international market, they need to make appropriate strategic transformation to adapt to the development of the international market, this way is useful for the enterprise to survive for a long time.

In June 2008, Wal-Mart‟s CEO, H. Lee Scott, presented a glowing report to the est imated 16000 shareholders attending the company‟s annual shareholder meeting held at the 19,000-seat Bud Walton Arena on the University of Arkansas campus, located a few miles from Wal-Mart‟s headquarters in Bentonville, Arkansas.

SWOT

STRENGTH

Scale of operations. Wal-Mart is the largest retailer in the world .It makes Wal-Mart the giant that no other retailer can match. Due to such large scale of operations, the corporate can exercise strong buyer power on suppliers to reduce the prices. It can also achieve higher economies of scale than competitors because of its size. Higher economies of scale results in lower prices that are passed to consumers.

Competence in information systems. The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement.

Wide range of products. Wal-Mart can offer wider range of products than any other retailer. It sells grocery, entertainment, health and wellness, apparel and home related products among many other categories and offers both branded and own label goods. Wide range of products attracts more customers to Wal-Mart stores.

Cost leadership strategy. This strategy has helped Wal-Mart to become the low cost leader in the retail market. The price of products is lower than supermarket in the around. Wal-Mart reduces the cost about some important meeting and facilities of leadership.

The high-speed development of the enterprise. We can see Wal-Mart's net sales, net income and shareholders' equity is growing every year. It shows that in addition to solvency is relatively weak; other indicators have shown Wal-Mart powerful force. Wal-Mart's solvency is weak because it wants to global expansion, for such a high-speed development of business, I think it is acceptable.

WEAKNESS

Wal-Mart…s low cost had resulted in substandard wages and insufficient medical benefits for employees. It has poor work conditions, low wages, unpaid overtime work and female discrimination. Because of this, the workers quality is low.

Comparing with other competitors who have focused products, Wal-Mart has lower flexibility. It sells products across many sectors such as clothing, food and other departments. Due to product diversity, Wal-Mart exist competitive weakness.

Wal-Mart has a bad image to consumer. Wal-Mart supports sustainable development, but it has more speak than action. On the other hand, awful employee benefit gives the world a bad image.

In local branch store, senior executives are accrediting, it‟s contradictory strategy