Walmart Strategic Recommendation As one of the largest retailers in the U.S. and one of the biggest multinational companies in the world, Wal-Mart is strategically positioned to continue to grow. In 2011, Wal-Mart’s net sales were nearly $20 billion, had over 8,400 stores in 14 countries, and employed nearly 2 million people worldwide. However, due to competitors such as Target and Amazon and a smaller global market, Wal-Mart is struggling to keep up with its annual 10% increase in sales. Currently, Wal-Mart operates in Mexico, Canada, Britain, Argentina, Japan, Germany, South Korea, and most recently, China, India, and South Africa. As an international retailer, the company has to expand more aggressively in order to become dominant. A strategic goal of Wal-Mart is to continue to expand globally. Wal-Mart’s strategy for expansion is simple: dominant every sector where it does business. As long as the company is doing well in sales and has dominance over its competitors, it has been successful. The company should continue to expand internationally. In 2011, 26% of net sales were overseas and if Wal-Mart continues to grow in untapped markets, the percentage of overseas sales will be more than domestic sales. As of February 2011, Wal-Mart has only 329 stores in China and only operates jointly with a company in India. Also, while Wal-Mart has been in the Japanese market for almost 10 years, it only has a 2.9% market share. These three countries are where Wal-Mart needs to aggressively expand in order to gain more sales. China has a population of over 1 trillion people and India has over 1 trillion people as well, a total of 2 trillion consumers waiting to be customers of Wal-Mart. The company needs to be aggressive by using previous strategies in previous countries – acquisition, partnership, and go-it-alone ventures. Wal-Mart should merge with existing companies that have been
price-sensitive consumers and cut cost to the bone by performing superior efficient activities. Therefore, it was capable of lowering price as much as possible; it performed much better than its competitors in terms of price. Regarding growth strategy, Walmart employed product development by gradually introducing private label lines and diversification by opening close-out stores, Sam's Clubs and Supercenters. Its main target growth was international expansion by joint ventures with local large retailers…
Walmart Case Analysis
Situational (SWOT) Analysis
Internal Factors (Strengths & Weaknesses)
With a store available in each corner, nationally and internationally, Walmart is a superpower retail brand. Using an immaculate pricing strategy, Walmart has imprinted on the minds of the consumers the “Everyday low prices, rollback, and special buy.” Walmart provides an immense variety of products that reaches all cultures and social levels. “Walmart helps people around the world save…
Power of Buyers: Low
Power of Suppliers: Low
Threat of new entrants: Low to medium
Threat of Substitutes: Low
Competitive Rivalry: high
Conclusion (Opportunities and Threats):
• It is useful to think in term of Opportunities and Threats as this information will form the basis of the Opportunity and Threats for the company
Economies of Scale
Threat of new entrants
• Adding new…
includes three case studies for consideration from each perspective. Select one (only one) of these case studies as the focus of your initial post in this discussion. Then analyze the selected case study from the justice perspective which accompanies it and answer the following questions.
a. If you select “Case Study 1.1 – Jacob Little and Walmart,” analyze it from the perspective of justice as a moral concept. Your analysis must address the following questions:
§ Did Walmart offer Jacob a…
Walmart Corporation (Financial Overview)
ACC205: Principles of Accounting
Instructor: Emmett Denham
While inaccurate accounting can cause misleading information about the company, every successful company should develop an income statement and balance sheet when monitoring financial growth. Also, formulating a horizontal and ratio analysis creates an accurate trend of the company spending behavior and debt-to-ratio venerability. A balance sheet can be considered…
Case：Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc.
1． How do the retailing strategies of Sears and Wal-Mart differ? How does each firm operate their business/attempt to create value?
The two companies differs in retailing strategy in two ways.
1. Credit sales boost sales greatly in Sears, not in Wal-mart
Since 1992 when Arthur C. Martinez was brought on board to head Sears’s retailing operations, credit sales, especially through the use of the…
variables are the adjoining columns number of stores, net square footage, number of employees, etc. Upon performing analysis for the given data regarding Walmart’s operations in different countries across the world, it was observed that the two factors that most affect Walmart’s operating margins are the proximity of the respective country to the headquarters in Bentonville and the % of Walmart sales in supercenters. This can be confirmed by the fact that these are the only two variables that have a reasonably…
this financial statement analysis I have decided to discuss the financial statement on Walmart, I will include the company overview, I will answer the following questions; What industry is in it? What are the main products or services? And who are its competitors? I will also include an horizontal Analysis of Income Statement and Balance sheet, I will show a 3 year analysis of the income and balance sheet, I will discuss the importance and meaning of an Horizontal Analysis as well as positive and…
Case Analysis #1
Walmart has had a slow process of creating business in China, due to encountering a numerous amount of problems with the country. The company was stalled by Chinese business regulators which were made up of bureaucracies, which resulted into the company to move slowly. Whereas their high competitors were bending their rules and using it to their advantage and progressing at a faster pace than Walmart, which lead to their competitors to secure a place in the world’s largest…
forwarding, labeling & re-freezing which adds upto more 15 U.S cents per lbs. in that case also only half of the fish is usable for fillets and rest is abandon. The other stages involved frozen storage facility that was 1 cent per lbs., then handling & holding fee altogether cost $0.6 per lbs. per month and the last fee which incurred 15 U.S cents was for transportation. So in totality it would cost Walmart $2.05 per pound and plus other expenses for shipping the fish to its super centers. As…