WAL MART SWOT ANALYSIS
By: Katie A. Bell
University of Phoenix
Wal-Mart Stores, Inc. was started by Sam Walton in Newport, Arkansas in 1946 in an effort to “help people save money so they can live better” and was achieved by keeping sales prices lower than his competitors by reducing his profit margin. From this simple concept the company has grown to nearly 3000 stores in 14 countries and is the world’s largest company in terms of revenue bringing in a staggering average of $401 billion annually. In addition to the Wal-Mart supercenters you now have the Wal-Mart neighborhood markets as well as Sam’s clubs that have begun to pop up all over since 1984. The ability to offer value and service to customers has largely determined their competitive position within the retail industry. There are many programs that are in place to meet the high competitive pressures within the retail industry that are the cornerstone of the Wal-Mart philosophy and are as follows: * Every Day Low Prices (“EDLP”) – the pricing philosophy under which items are priced at a low price every day so that the customers trust that the prices will not change frequently within promotional activity. * Roll backs – the commitment to pass continually internal and external cost savings on to the customer by lowering prices on selected goods. * Store Within a Store – a program to provide accountability to assistant managers and department managers as to merchandise planning and overall department performance. * Store of the Community – a program to ensure that the merchandise assortment in a particular store fits the demographic needs of the local community in which that store is located. (www.sec.gov/Archives/edgar/data/104169/000119312506066792/d10k.htm, 2006) The strengths of Wal-Mart are abundant in number. You can find positive points about every aspect of business conducted. In one store they offer a huge selection of goods at a very competitive, if not the best, prices in a...
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