External and Internal Environmental Analysis of Wal-Mart

External and Internal Environmental Analysis of Wal-Mart

Introduction

The main purpose of this paper is to conduct an Environmental analysis of Wal-Mart. This paper discusses the main competitors of Wal-Mart, their strength and weakness, and the way Wal-Mart differentiates itself from its closest competitors. This paper also discusses the company's intention to be a leader or follower within the industry. The macro-environmental issues of Wal-Mart, most important trends that impact the Wal-Mart's business and company's intentions to minimize or capitalize the trend have also been covered in this paper.

Company Overview

Wal-Mart is the world's largest retail operation, with over $400 billion in annual sales, 4,100 stores in the United States, and 3,500 stores overseas. In 2009, Wal-Mart was the highest-volume grocer in the United States, with approximately $100 billion in sales and a 21 percent share of the grocery market. Wal-Mart also operates several international markets, but these are the United Kingdom, Canada, Japan, Mexico, Brazil and China. This product range includes both national and private-brand manufacturers. Only time will tell if they are up to the challenge.

Internal Strengths and Weaknesses Wal-Mart

Strengths

A market leader with unprecedented scale gives a competitive advantage

Low cost leadership enabling Wal-Mart to offer products at low price points

Internationalization strategy: a strong foundation for growth as the US market matures

They have scholarships for high school students, help children's hospitals hosting a telethon, and helps nonprofit organizations. -Location of shops.

The company has a rule in which any employee that is within 10 feet of a customer to say hello and ask where you can help. -Wide range of goods offered to customers. The merchandise offered by this retailer is always competitively priced, well located, fashionable and manage your inventory is constantly moving.

The major strengths of Wal-Mart are on your age and confidence, which focus on having a good service to its customers and its marketing focus on the customer always find what you want at low prices. In others:

-It is continually updated

-It is original in its marketing.

-It is recognized internationally.

-Effective use of logistics techniques.

Weaknesses

Despite being a company that barely meets difficulties and that their strengths are more than double its weaknesses, as in all Wal-Mart has aspects that should improve.

Big box retailing format led to low penetration into urban areas

Litigation affect labor relations adversely offer products at low price points Target's superior merchandising capabilities to appeal more to customers as the US economy revives

Target's superior merchandising capabilities to appeal more to customers as the US economy revives

From the web site "transnationale.org" Means that employees and suppliers of this giant company are abused by this chain. Suppliers are forced to allow Wal-Mart examine your finances to take advantage and demand cost reductions "unnecessary", the press and intimidating to maintain a pattern of cost reduction.

On the labor front is mentioned that The Federal Equal Employment Opportunity has fined Wal-Mart for discrimination against the disabled, and Maine have found over 1,400 violations of laws prohibiting employment of minors. The clerk to "full time" only works ...