沃尔玛,内外部环境,优劣势,战略分析(英文版)

Student ID No: ________121509_____Min Jie________

Pages: 32

Questions: 1

UNIVERSITY OF TASMANIA

TAKE-HOME EXAMINATION

Semester 5, 2011

BMA302 Strategic Management (SOU)

Examiner: Dr Dallas Hanson

Time Allowed: TWO (2) days

ENVIRONMENTAL ANALYSIS

Introduction

Wal-Mart is a tycoon in retailing industry with totally 6782 stores scattered in 13 countries such as America, Mexico, Canada, China, Japan, and Brazil, ect. Corporation launch the position in low price as the catchword: to save people money so they can live better. In order to improve the lives of everyday people by making everyday thing more affordable, Wal-Mart highlights cost efficient supply chain and economies of scale to achieve lowest cost and productivity.

The mission of Wal-Mart is to offer affordable commodities to the general public and update information system in supply chain. In three segments, company continue to set differentiation strategy and superior service to appeal customers. Nevertheless, company would stress staff concern in healthcare and payment. In vision, Wal-Mart has a lofty aspiration in global expansion and another level of publicity.

External

General environment

Demographic

An aging population represent an upward trend as the global population size is getting bigger. In US, it is estimated that the number of those aged 65 and up will boost to 86.7 million by 2050. The wonderful life of residents in developed nation brings about longer expectancy and lower baby rates. Since crowds of foreign immigrant pour in American labour market, ethnic and gender diversity increasingly apparent in US where the proportion of whites’ workforce seems descend and female labour over the age of 16 has increased. As to income distribution, there exists gulf between rich and poor resulting from returns to education.

Economic

Owning to the financial crisis in 2008, world trade was hit hard and it fell in pessimistic market environment. Furthermore, the GDP growth in lots of nations is slowing down, which poses a threat to the retailing industry. The majority of the retailers facing the common sales difficult position were at stake in retailing business.

Political

According to California labour law, it is compulsory for enterprise to provide meal and rest to employee. Second, it appears to great concentration on discrimination against women in promotion, pay, training, and job assignments.

Socio-cultural

The governments in many developed countries stress on health care, anti-monopoly trade, the environmental conservation, discrimination, reasonable worker pay and general anti-corporate sentiment. Any action breaking antitrust laws and handling hazardous waste to reduce the cost of treatment would be punished. Additionally, the diversification in gender and culture would restructure the international division of manpower.

Technological

In order to achieve cost-efficiency and tracking real time information en-route, RFID has been widely utilized in optimizing the retailing supply chain. Another burgeoning application is internet by which increasingly people around world could absorb fresh news and make purchase without boundaries. Electronic commerce would lead to a new round of explosion in retailing market.

Global

In line with globalisation trend, trade barriers continue to come down. The development of information technology appears immense potential that expand market and offer excellent labour, capital, goods and service. Simultaneously, bilateral and multilateral free trade agreements are continuing to shape markets.

Industry environment

The retailing industry operates as a superstore offline and online, which offering wide variety goods and service to the public at a reasonable price. Thousands of merchandises in retailing range over electronics, daily necessaries, food, and healthcare and so on. It is a mature industry where many competing retailers fight for more market share such as Target, Costco and Kroger.

Threat of new entrants

In spite of low switching cost for customer to buy merchandise from new entrants in retailing industry, existing retailers have established enormous economy of scale and strong distribution channel to realise firm s’ flexibility and efficiency. For those new entrants without profound resource and capital, it is impossible to entry this area and have a place.

Bargaining power of suppliers

The bargaining power of suppliers seems quite weak due to retailing supplier and manufacturers features large quantity with similar goods, low switching costs and multifarious substitute products. Above all, these suppliers have to meet retailing tycoon halfway for big demand and large share of business so that they transformed to specialized suppliers serving for the giant invisibly.