Walmart is an American retail corporation founded in 1962 that operates stores worldwide. It has grown from regional to national dominance through strategies like maintaining low prices, branching into new sectors, and emphasizing brand recognition and customer satisfaction. While its size and pricing power give it strengths, Walmart also faces weaknesses such as negative public perception and dissatisfied employees, as well as threats from increasing competition and resistance from local communities.
2. Introduction
Walmart, is an American multinational retail corporation that
operates a chain of hypermarkets, discount department stores and
grocery stores. Headquartered in Bentonville, Arkansas, the
company was founded by Sam Walton in1962 and incorporated on
October 31, 1969. The company was listed on the New York Stock
Exchange in 1972. In the late 1980s and early 1990s, the company
rose from a regional to a national giant.
3. Beliefs of Walmart
1. Respect for the Individual
2. Service to Customers
3. Striving for Excellence
5. Company’s Strategy
1. Create widespread name recognition and customer satisfaction with
the Walmart brand, and associate the retailer with the reputation
of offering the best prices
2. Branching out into new sectors of retailing such as pharmacies,
automotive repair, and grocery sales
3. The strategy is very clear and direct. It was put into place in the 1960's
by Sam Walton, and refined over the decades. The company
is proud of its strategy and even incorporates it within its moniker
"Always Low prices, Always."
6. Strengths
1. Powerful enterprise
2. Improving returns in International
3. New connection with E-Commerce
4. Getting results from leverage initiatives
5. Competence in Information Systems
7. Weaknesses
1. Negative Image on Public
- 50% decrease of small retail shops
due to incoming of Walmart in
market.
12. Threats
1. Increasing competitions from other online competitors
2. Increasing resistance from local communities
3. Rising commodity prices
13. Globalization
1. Walmart used Multi domestic strategy in Americas
resulting in very successful penetration
2. Walmart is trying to move towards a transnational strategy to
effectively utilize local and global competencies.
14. Financial Condition
For the fiscal year ended January 31, 2016, Walmart's total revenue
was $482.1 billion and the company returned $10.4 billion to
shareholders through dividends and share repurchases.
17. Walmart Black Friday
Black Friday is the day following
Thanksgiving Day in the United States
Since 1932, it has been regarded as
the beginning of the Christmas shopping
season. Walmart every year comes
with irresistible offers. It affects the graph
of sales growth in a significant number.
19. Walmart downfall in Germany
Walmart was not able to reach the consumers mentally
as people were boycotting Walmart for their own
company.
Walmart lost 1 billion $ in Germany due to this as it
was low profitable market.
Walmart was unable to become cost leader in Germany.
20. Summary
Due to its beliefs and principles regarding their techniques and behavior
towards how people are reacting to their each step taken, the company has
oriented its way. And now it is leading the world in its area.