WAL-MART

Wal-Mart Organization Analysis

Wal-Mart Organization Analysis

Introduction

Wal-Mart has to face ever changing market trends. A few of these market trends may change the market conditions of Wal-Mart. Through Market trends one can see how Wal-Mart will change or will not change, in order to continue to thrive and grow in tomorrow's economy. Wal-Mart, the big giant, the place where a lot of people usually does their shopping for the low prices and the variety of products was founded by Sam Walton. In this paper we will analyse the Organization Model of Wal-Mart.

Mission

To provide everyday low-prices on their products as well as a customer friendly store environment with a strong emphasis on customer satisfaction.

Objectives

To grow at double digit rates for the foreseeable future and propel Wal-Mart's revenues past $500billion by 2010.

Porter's five Organization Model

Competitive Advantage

Wal-Mart was widely seen by consumers by being the lowest priced general merchandise retailer in the market. Prices of its grocery items were 8-27% below other leading supermarkets.

Competitive Scope

Wal-Mart has a broad target

Corporate Strategy

Expansion/Retrenchment

Industry Analysis (5 forces)

Risk of New Entry

In order to reduce the risk in entering the discount retailing industry, companies had to compete in terms of pricing, store location, merchandise mix, and store size.

Wal-Mart uses acquisition to reduce barriers to entering markets.

In terms of absolute cost advantage, Wal-Mart uses superior production techniques in testing and experimenting new merchandises.

Rivalry

Firms constantly strive to acquire a large market share to maintain or increase their position in the industry. In addition, retailing industry also show a strong growth in its demand conditions.

Bargaining Power of Buyers

Companies in retailing industry

Suppliers bargaining power is reduced by the industry by the quantity of orders they placed in its supplier.

Threat of Substitute Product

In order to reduce this threat, retailing industry offer low pricing on their products.

SWOT ANAYLSIS

Strengths

Reputations as a global company

Strong ...