WAL-MART STORES INC: DOMINATING GLOBAL RETAILING
The Wal-mart is the largest retail chain in United States and in the world. The wal-mart was founded in the year 1962 by Mr Sam Walton. It was originally named as Wal-Mart discount city in Rogers, Arkansas. At the time when the Wal-Mart stores started in the year 1962 it was focused only in small rural cites and town which had a population of 5000 to 25000. It was soon increased to 18 stores in 1969. In the next 30 years it had more than 4750 stores across 50 states in USA and 9 countries with $245 billion sales. It started its international operations in Mexico in the year 1991 and then it expanded it to different countries across Europe and Asia.
Today Wal-Mart servers around 130 Million people world wide and it has employees over 1.3 million people across the globe. They have been increase in growth of sales over 11% which amounted $6.4 billion US dollars. The earnings of the Wal-Mart are far ahead of its French competitors Carrefour although it is having its branches in 32 countries it earning and saving far behind. With wide range of suppliers the Wal-Mart has it has been one of the successful retail chains in the world today.
The Wal-Mart is doing its business in the retail marketing and it belongs to retail industry or the retail business.
2) General environment analysis
The Wal-Mart stores had six different environmental analyses that are been given in this case study. They are some other major facts that are listed and can be listed under this general environment analysis. The first factor is economic factors Wal-Mart are having different economic conditions in time. Due to these economic conditions the Wal-Mart has started four different formats of the stores namely discount stores which are the original stores which provides wide products, Supercenters which are operated for 24hours to attract customers for there daily needs, Neighbourhood markets they are for the urban city customers, Sam’s clubs for small business people. The second factor is social culture as Wal-Mart has opened in different parts of the world it has taken care that it provides the necessary items for the local people. The global factor is considered after the failure of its business in Germany and taken care that it will not repeat those mistakes again.
The technological factors have been one of the key for success of the Wal-Mart as using new technologies such as EDI systems and point of sale system. Even the data mining has brought many factors about the customers buying of the products. The political and legal environment has bad effect. There are around 40 cases as low labour cost to making employees working over time. The most popular case was of meat cutters which brought a change in 40 years in this company. The demographic factors are also taken care by the Wal-Mart are also taken care such new fashion clothes are sold in there stores.
The industry environment
The industry environment deals with the different five forces. The supplier’s power is very low as the Wal-Mart does permit any middlemen or agents. Most of the suppliers lead to low wage or little unionization this seen in most of the rural areas. The buying power of the customers is low as rural areas are cut off other parts of the world and have very low competition. The attractive pricing and volume of goods in large amount increase profits. New entrants have low chance of scope to perform in retail market as Wal-Mart made extensive logistics investments and it has an excellent distribution channels.
The substitute products are also very low the other competitors or any other department stores will be having higher price and almost less choices. In Wal-Mart they are many choices for those customers who are concerned about the price of the product. The rivals of the...
Please join StudyMode to read the full document