WALMART Case Study

Document Type:Case Study

Subject Area:English

Document 1

The company has clubs in 28 countries and 11718 stores which operate under 59 names which are different. Walmart is the biggest company in the world in revenue and also the world’s largest employer in the private sector wit 2. 3 million employees. It is a business that is family owned and controlled by the Walton family. The success of Walmart is attributed to the company’s effective application of set strategies to attain the company’s’ mission and vision. The first neighborhood was founded in 1998. Walmart International operates in the international platform and has 6360 stores in 26 countries and 800,000 workers. Sam’s club is a series of clubs for warehouse that sell general merchandise and groceries mostly in bulk. They are membership clubs for warehouses where annual membership is bought by customers.

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Global ecommerce is the company’s division that provides retailing online for Walmart (Chan, Unger and Beaumont. The company also needs to make sure that the products that they intend to sell are always in stock. It should be very weary of its management since it’s the one in charge of the employees. Employees are a huge part of any company and their needs should be seriously taken care of. Walmarts strategic decisions are a manifestation of the company’s mission. The statement of the mission is,“saving people money so they can live better. Wal-Mart’s strategy that is generic is cost leadership. In this strategy the focus of the firm is to maintain low prices for services and goods.

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Walmarts main reason for its popularity is because of its low prices. It manages to keep the cost low by reducing cost in operations. The non-pleasant side for this is that the employees’ wages also get to be cut. However, the company’s emphasize is on marketing and sales which means product development strategy is minimally used. Walmart has unexplored opportunities in the market. To be able to match up with the other big retail companies in the world it can opt to merge with, take over or build strategic alliances with them while focusing on markets specific to them like China and Europe. The companys’ stores are only situates in a small number of the countries which implies that the company could expand its business and open more stores in the country.

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There products could also be more diversified to meet a wider variety of customers. Wal-Mart like any other company is faced with threats. It faces a lot of its threats from the competition point of view. Global retailers including Amazon, Target, Carrefour and Costo are working hard to bridge the difference in price between Walmart and them while still offering shopping experience that is enjoyable with products that are of high quality. Another threat is that products are increasing in price due to increased labor and manufacturing costs which means that the company’s profits are highly affected. Wal-Mart has tried its hand in online retailing but it has not done as well compared to companies like Amazon. With this process also Walmart will be able to reduce its costs because it will no longer need to open stores in every city.

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