Mr Mantas Stravinskas

Topics: Supermarket, Wal-Mart, Retailing Pages: 4 (1163 words) Published: February 5, 2013
Chapter 3
The supermarket industry in the United States of America has grown enormously over the past few years. Wal-Mart is one of the leading supermarket organisation with a market share of 63.60%. Wal-Mart has other supermarket companies like Costco Corp and Supertarget competing for the increased consumer spending in the US. As a market leader Wal-Mart has competitive advantage over its competitors. One of the reasons behind Wal-Mart’s success is its better management controls. The company has great opportunities in foreign markets as means of expansion. Strengths * Largest retailer in the world, * Competitive advantage in the market, * Wide range of products, * Rapid expansion in the international markets.| Weaknesses * Lack of space in downtown urban regions for expansion, * Various lawsuits regarding is labour relations.| Opportunities * Exploring new international markets, * Exploring the food and grocery segment of the retail industry, * Improving its online retailing means to target a larger market.| Threats * Huge labour costs, * Changing price margins and commodity prices, * Comparable promotional strategies from the competitors. * Pressures from local authorities.|

SWOT analysis
* Wal-Mart is ranked first in the Fortune 500 as the largest American retailer. With revenue of around $400 Billion in 2011 and has around 8970 stores across US. It employs around 2.1 million people. * Being the largest retailer in the US it has great dominance over factors like price, supply, etc. and hence a good competitive advantage in the market. * It offers a wide range of products like the clothing, food and groceries, entertainment, home wares, etc. * Wal-Mart is working in a saturated market of US. Over the years, Wal-Mart has acquired an enormous amount of market share and the vision of the company is to now expand globally. Its first international store was in Mexico and now has around 3949 stores around...
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