Case Study Wal-Mart
Evaluate the general environment of Wal-Mart using the framework in Chapter 2. What are the key opportunities and threats facing Wal-Mart? (This is the "OT" of a SWOT analysis)Wal-Mart 's builds its stores in towns with a population size of 5000-25,000 people. Wal-Mart has recently started to tap into the more populated city suburbs by building smaller less obtrusive stores in those regions. Wal-Mart targets every age group from infants to senior citizens. Wal-Mart 's geographically places it 's stores in rural less populated areas with very few employment opportunities. Wal-Mart tries to attract all income levels by selling brand name items along with generic brand items. Wal-Mart approaches its global market by evaluating market potential based on economic and political risk, growth potential, and availability of real estate for development. In countries that had became saturated Wal-Mart used acquisitions to acquire ownership. In markets that were not saturated and land was easily accessible Wal-Mart used organic growth. The technology that Wal-Mart uses to run their business is unmatched. They have a network of satellites that can track a person purchase and automatically refurbish those items from suppliers without any human intervention. Wal-Mart maximizes efficiency by using effective technology to gain a competitive advantage. Wal-Mart has grown into a global empire and has become the world largest private employer and the number one retailer in the world. Despite all of this success Wal-Mart still has a huge opportunity to grow. Wal-Mart continues to adapt to the ever-changing economy by remodeling their store and by placing the customer as their number one priority. Wal-Mart took advantage of its rural locations early on and gained a significant competitive advantage, now Wal-Mart is taking on the urban environment by placing stores in the outskirts of major metropolitan areas. At first local residents rejected the idea of having a Wal-Mart in their
Cited: itt, M., Ireland, R., & Hoskisson, R. (2007), Strategic Management, Competitiveness andGlobalization: Concepts and Cases. 7th ed. Mason: Thomson South-Western(August 21, 2006). Global Labor Strategies: Wal-Mart: The Homefront. RetrievedSeptember 18, 2007, fromhttp://laborstrategies.blogs.com/global_labor_strategies/2006/08/walmart_the_hom.html