Walmart Analysis

1312 words - 6 pages

1a. Wal-Mart is a US based multinational retail company that sells general merchandise and groceries. It has grown over the last fifty years into the largest retailer in the world. Today, nearly 260 million customers visit more than 11,500 stores under 65 banners in 28 countries and e-commerce sites in 11 countries each week. With fiscal year 2015 net sales of $482.2 billion, Wal-Mart employs 2.2 million associates worldwide – 1.4 million in the U.S. alone.
One of the strengths of Wal-Mart is the scale of operations. Wal-Mart is the largest retailer in the world with more than $400 billion in revenue and 10,130 stores. It makes Wal-Mart a giant retailer that is very difficult for other ...view middle of the document...

Also, there is high employee turnover. This increases firm’s costs, as it has to train new employees more often. The main reason for high employee turnover is low skilled and poor wages.
1b. Wal-Mart offers a wider range of products than any other retailer. It offers both branded and own label goods. Among some of the categories are:
• Electronics & Office
• Movies, Music & Books
• Home, Furniture & Patio
• Home Improvement
• Clothing, Shoes & Jewelry
• Baby & Kids
• Toys & Video Games
• Food, Household & Pets
• Health, Beauty & Pharmacy
• Sports, Fitness & Outdoors
• Auto & Tires
• Photo & Gifts
• Crafts & Party Supplies
1c. Wal-Mart in the U.S is ranked first in power distance and individualism, and second in uncertainty avoidance. This shows that there is unequal distribution of power of group member. Relationship between employee and employer is strict and rarely goes down to a personal level. Male workers are often very assertive and competitive where as female workers are more often like followers, doing as they’re told by their superiors. Wal-Mart employees accept familiar risks and fear of ambiguous situations as well as unfamiliar risks. Although Wal-Mart’s mission statement is “Saving people money so they can live better.” They did not take into account their employee’s welfare, and workers are not well taken care of.
2a. Wal-Mart selects it’s markets based on strategic importance of market. They expanded internationally so as to rise above competitors such as “Carrefour” from France as well as “Tesco” from the United Kingdom.
Wal-Mart has grown rapidly to the largest retailer in the world. Wal-Mart has been able to reap significant economies of scales from its global buying power, they have made used of their significant size exercise strong buyer power on suppliers to reduce the prices, this increase Wal-Mart’s ability to pass on lower prices to consumers, gain greater market share and ultimately reap greater profits.
2b. Wal-Mart uses two main types of market segmentation. The first type is regional. Regional segmentation involves grouping customers based on their physical location such as by city, county, state, region, country, or international region like Asia or Europe. For example, Wal-Mart does not stock snow shovels in its cities like San Diego because there is hardly snowfall in that side of the country.
The second type of segmentation is by demographics, which is based on the age of customers. In this type of segmentation, the company stocks its outlets to meet the tastes of its customers depending on their age in a certain region.

3a. The four key issues are culture differences, stiff competition, lack of scales and stores being located in undesirable locations.
3b. Because of culture differences, Wal-Mart does not understand the countries’ common practices; this will lead to misunderstandings and unhappiness among consumers, which will affect the success of Wal-Mart’s expansion. For example,...

Other assignments on Walmart Analysis

Walmart Essay

1421 words - 6 pages in Sustainable Development in May 2010. According to a December 2009 article posted by World Environment Center on the Corporate Social Responsibility Newswire Wal-Mart is, “A leader in sustainability, corporate philanthropy and employment opportunity, Walmart ranked first among retailers in Fortune Magazine's 2009 Most Admired Companies survey.” Since the question is only asking if they are doing enough to become “more” sustainable, I would

Walmart Batting Essay

953 words - 4 pages , which competes directly with Wal-Mart's Sam's Club warehouse chain, has emerged as the high-road model. While Wal-Mart fights aggressively to stop any union organizing whatever, Costco has agreements with the Teamsters for 16 percent of its employees and has extended most of the benefits to its entire workforce. A BusinessWeek analysis shows Costco's average hourly wage is $15.97, far above the Wal-Mart (Sam's Club) $11.52 figure, even excluding

Walmart Case

1301 words - 6 pages This paper is examining Wal-Mart Stores, Inc. and analyzing the value of its stock to make a buy/sell recommendation. The valuation is based on a variety of techniques to price the shares and then compare the intrinsic value with the currently trading market price: Dividend Discount model, CAPM, Three-Stage Approach and the Price/Earnings Multiple Approach. Executive Summary Founded by Sam Walton, Wal-Mart is the largest retailer in the world

Walmart: Mgt 203

764 words - 4 pages Wal-Mart: Is There a Downside to Going Upscale? Wal-Mart is an American public multinational corporation which operates in different product lines. It has food and beverages, clothing, consumer electronics, as well as medical clinics. However, the company faced problems with slowing growth and rocky transitions leading them to some changes, developments and innovations to improve their competitive edge. Wal-Mart has been affected by the

Walmart’S Expansion In Africa: A New Exploration Strategy

3069 words - 13 pages prepare for the next step, which is continental expansion. South Africa is arguably the most westernized country in Africa. Western companies in general perceive it as easier to do business there than in other African nations. II. SWOT ANALYSIS The SWOT analysis of Walmart shows that the company can have higher long-term success potential through aggressive global expansion, especially in retail markets in developing countries. Strengths

Ratio Analysis Under Different Accounting Rules

1255 words - 6 pages DuPont Method. In addition, I will also look at how changes in accounting methods affected Seven and I holdings’ results in 2013 when compared to 2012. Finally, I will conclude my analysis on how comparable it was under different accounting methods based on above analysis. _____ Three Companies Chosen for Analysis For this ratio analysis assignment, I chose three companies from the UK, US and Japan: Walmart Country: US Industry

Omega Paw Case Study

1128 words - 5 pages markets, or expand into grocery stores. Rank each issue above as defined below: LOW IMPORTANCE HIGH IMPORTANCE LOW URGENCY I II HIGH URGENCY III IV 3. Situation Analysis: a. What are the root causes of the issue(s)? • Ebert is doing well with Omega, but would like to grow it. Aggressive growth won’t be easy b. What constraints and opportunities impact the decision? • Direct and indirect competition • Advertising is expensive, and

Operations

5309 words - 22 pages in 10 to 19 countries Presence in 20 or more countries 30 20 10 1Economist Intelligence Unit; Accenture Analysis. 0 1986 1996 2004 2JA Dawson, “Scoping and conceptualizing retailer internationalization,” Journal of Economic Geography, 2007, vol. 7, p.373-397; Accenture analysis. 3 Yet entering emerging markets can be challenging—and not just because local players may enjoy structural or legacy advantages in

Ethics And Complaince Fin370

1825 words - 8 pages truth that financial records of any corporation must signify a precise and factual view of the corporation’s financial status. Stockholders require this assurance or they will not invest in corporations that are publicly exchanged. As a result, financial markets will absolutely fail. Fortune Magazine absolutely mentions Wal-Mart with America’s most approved corporations. An analysis of Wal-Mart’s Code of Ethics makes the conclusion in this

Fdi In Retail

1623 words - 7 pages : Analysis of Retail Sector: a. Major contribution to GDP: the retail sector in India is hovering around 33-35% of GDP as compared to around 20% in USA. b. High Growth Rate: the retail sector in India enjoys an extremely high growth rate of approximately 46%. c. High Potential: Since the organised portion of retail sector is only 2-3%, thereby creating lot of potential for future players. d. High Employment Generator: the retail sector employs 7% of

Sally Beauty

484 words - 2 pages order for SBS to remain dominant in the professional hair care supplier, they must recognize the value of these trends (Sally beauty supply, 2012). Problem Statement: Consumers perceptive on SBS store is that they cater toward hair stylist and they only carry hair products. So, when they shop at other stores such as Target or Walmart to buy other products such as make-up or cosmetics the consumer will pick up their hair products there as well

Similar Documents

Walmart Essay

2126 words - 9 pages Summary of Case Table of Contents Summary of Case History Overview: * Vision, Mission, and Goals Major Issues Swot Analysis CSR Analysis - “Buy American” program and “Environmental Awareness” program Sam Walton: A motivational Genius? Walmart’s responsibility to it employees Stakeholder analysis Competitors Ethical Practice towards Walmart Walmart’s and the international arena Critique Recommendations References History

Walmart Essay

395 words - 2 pages standpoint as this will help me someday when I plan to open my own company. I look forward to knowledge, tips, and information I will gather by the time I have completed this project. References Sam Walton. (n.d.). Wikipedia, the free encyclopedia. Retrieved September 12, 2012, from http://en.wikipedia.org/wiki/Sam_Walton Walmart Corporate - Our Story. (n.d.). Walmart Corporate - We save people money

Walmart Essay 982 Words

982 words - 4 pages of truth. This research is beneficial because it aims to get a better understanding through firsthand experience, truthful reporting, and quotations of actual conversations (Data Collection Strategies Ii: Qualitative Research, n.d)). The participant in this research will accomplish the goal of knowing from daily experience of how the employees of the Walmart brand truly evaluates the company’s business perspectives such the type of structuring

Walmart Essay 1310 Words

1310 words - 6 pages 44816 Voronova Ekaterina g. what are other products available in the market in conjunction with the main animation movie? "How to Train Your Dragon" is the second part of the animation movie, which was filmed in 2010. It is also planned the release of the third part of this animation movie «How to Train Your Dragon 3" in 2017. Besides Film series on the market as well have Television series. On October 12, 2010 it was announced that