Strategic analysis of Walmart

Walmart is one of the biggest retailer company in U.S. and is identified as one of the biggest multinational companies around the world. Walmart was opened first by Sam Walton and James "Bud" Walton in Rogers, Arkansas in the year 1962. By the year 1970, Wal- Mart has 18 stores around and $44 million sales revenue, in the same year Walmart was made public . Walton continued to open stores and planned to open and locate them mostly in small and midsized towns from 70's-80's. The company expanded so fast and the profit dramatically increased , by 1980 the number of store increased to 276 stores with sales revenue to $1.2 billion (Walmart Stores).

In 1983 Sam's club was first started on the name of "SAM'S Wholesale Club. It started with a joint venture with Cullum Companies with an area of 200,000-sq,-ft at that time. After Sam Walton retired in 1988, David Glass Succeeded and became the next CEO of Walmart. After the business progressed, it expanded too many countries and first amongst them being the neighboring country Mexico. As it began to expand its business the second CEO David Glass retired and remained as one of the chairman.

The former COO Lee Scott took over as the next CEO of Walmart. By the year 2002 Walmart was spread all across the world and Fortune Magazine ranked them as largest retailer in America in the same year. In the later stages the business expanded and went online with numerous products and made quick progress in spite of many issues that were encountered. (Fan Yang, n.d.).

Mission Statement

“We save people money so they can live better”("Mission Statement,.n.d.) Goals and Objectives Empowerment of women's economy

Increased Sourcing from Women-Owned Business:

Sourcing $20 billion from women owned business for U.S. business and double sourcing from international women suppliers from the countries where they do business.

Strategic Analysis of Wal-Mart 3

Launch a dedicated women owned product business in Wal-Mart.com market place.(Wal-

Mart Global Responsibility, n.d.)

Sustainability of Environment:

Environment has become major point essential ingredient for a business to run responsibly and successfully. As a successful business the company has potential to ensure their customer's money and help ensure better world for the upcoming generations. In the same time it sets a platform for more financially stable and responsible Walmart. The major three aspirational goals are:

Energy: To be able to supply 100% renewable energy.

Waste: Produce no waste

Products: Market products that are sustainable to the people and the environment.

Responsible sourcing

Walmart has always centered for helping people live better. This not only applies to the workers, customers and associate but also to the workers who make the products. Important Enhancement to responsible sourcing programs in three different area: Empowerment: Empowering supplier, workers, factories and the merchants through building, training and ongoing support.

Workers safety and well-being: Focus on workers safety and well-being in the supply chain by verifying the supply chains verifying through continued audits, strengthening the labor and environment practices in the farms that supply the merchandise to the company, and proactively collaborating with other brands, governments, retailers and key stakeholders. (Walmart Global Responsibility, n.d.).

Hunger and Nutrition:

Walmart is committed to getting best, healthiest, affordable food to as many people that it can provide. The company is making more healthier food and healthier food more affordable. The company is using more affordable ways to help farmers and the communities, produce more food with and less waste, and sustainable sources for good agricultural products. (Wal-Mart Global Responsibility, n.d.).

Industrial Analysis

Strategic Analysis of Wal-Mart 4

Walmart is the most successful and highly spread retail market around the world. The company which started with just 18 stores and $44million sales revenue is now widespread and it has over 11,000 stores around the world and the total revenue of the year 2014 is $473.1 billion. Walmart operates in highly competitive retail industries in the United States and around the world. The company faces strong competitions from other retail sectors like Wegmans, H-mart, Costco, K-mart and Target.

With the increasing number of competitors the possibility of threat also increases subsequently as the business has implemented online shopping and has an online website that helps people shop from their home. The other retails besides this also has the very good market all over.

There is a lot of potential for growth in the international market and certain strategies are to be developed in order to acquire the international market and increase the revenue. Wal-Mart is known worldwide for its quality of products, therefore this reputation can help in attracting the customers from other countries.( Fan Yang, n.d.).

SWOT Analysis

Strength:

Globally Recognized: Walmart is located in 27 countries across the globe and is recognized globally as a genuine brand. Quality: Walmart is known for its quality in their product, which is the reason that many customers are attracted towards it. Customer Satisfaction: Walmart provides a good customer service to each and every customer and build a strong relationship with them. Weakness: Although the business has good reputation all over the company has been charged with number of lawsuits the affects its image and reputation.

It is charged with different issues, such as Discriminations, wage issues, environmental issues and other issues such as child labor and bad working conditions.

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There has been several cases filed on charges of discrimination. One of the charges was charge of discrimination against disabled people in the year 2005 and the company lost $1.7 million to the plaintiff.

Opportunities:

Expansion into emerging market: Walmart is perceived universally, venture into developing nations could result in standard growth. As the dollar weakens the market grows and thus, Walmart can expand its venture in developing nations. Countries like Singapore has always attracted foreign corporations to invest and the government has always provided the foreigners with the locations to invest. In Singapore there are many different ways for a foreign business to pick up place for their operations. The Government their categorizes business locations into groups. Here are some of the list of such locations:

Business Park

Specialized Industrial Parks

Overseas Industrial Parks

Technopreneur Parks (Fan Yang, n.d.).

Threats:

Competition: Walmart has a heavy competition from companies like Wegmans, Target and Costco, These companies also provide similar services and try to attract customer towards them. Transaction: Walmart is a highly spread retail company and so the number of transactions per day are uncountable, so to keep the data of the transactions and the transactions secured they have to maintain security breach which cannot be accessed or hacked by anyone.

IT Related Projects For Wal-Mart

SolarCity has announces a new project in contract with Walmart. Over the next four years Solarcity will install solar projects in all the facilities in up to 36 states. They have already completed over 200 solar projects at Walmart locations since 2010. Since 2013, SolarCity has installed and tested energy related projects, which is co-related with power generation at 13 Strategic Analysis of Wal-Mart 6 Walmart locations, and will be incorporating few more in the coming years. (Solarcity Newsroom, n.d.)

Since the company has announced in 2013, SolarCity has installed nearly 50 solar projects for Walmart including:

Arizona – 10 carport and 2 rooftop projects totaling more than 5 megawatts

California – 12 rooftop and 3 carport projects totaling 6.3 megawatts

New York – 4 rooftop projects totaling 1.6 megawatts

Oregon – 3 rooftop projects totaling 283 kilowatts

Puerto Rico – 13 rooftop projects totaling 2.9 megawatts (Solarcity Newsroom, n.d.).

Each of the next ten of the storage projects will use 200 kilowatt (400 kilowatt hour) battery, expanding battery storage capabilities and also reducing the further energy expenses. SolarCity has offered 5,000 permanent American jobs since it started its project in the year 2010.

According to the solar energy industries association (ASIA), Walmart is the top solar energy commercial in the United States. According to EPA's Green Power Partnership , it the largest on-site renewable energy user. Strategic Analysis of Wal-Mart 7 Reference

Retrieved from http://aladinrc.wrlc.org/bitstream/handle/1961/9446/Yang,%20Fan

%20%202009S.pdf?sequence=1

Walmart's Hunger & Nutrition Commitments. (n.d.). Retrieved from http://corporate.walmart.com/global-responsibility/hunger-nutrition/SolarCity Announces New Solar Power and Storage Projects with Walmart. (n.d.).

Retrieved from http://www.solarcity.com/newsroom/press/solarcity-announces-new-solar-power-and-energy-storage-projects-walmart

Walmart Global Responsibility. (n.d.). Retrieved from

http://corporate.walmart.com/global-responsibility/