Walmart

Abstract

The paper discusses the mission purpose and primary stakeholders of Walmart. It highlights the five forces model for the company and its SWOT analysis. In light of the current year performance, it presents the strategies that have been devised and implemented by the company for increased competitiveness and profitability. Lastly, it discusses the corporate governance issues faced.

Table of Contents

Introduction2

Mission vision2

Primary stakeholders2

Porter five forces analysis3

Supplier power3

Buyer power3

Competitive rivalry4

Threat of substitution5

Threat of new entrants5

SWOT Analysis5

Strengths5

Weaknesses6

Opportunities6

Threats7

Strategies to maximize competitiveness and profitability7

Growth opportunities7

Leveraging scale and reducing cost7

Improved returns7

Corporate governance issues8

References10

Walmart

Introduction

Walmart is the American multinational chain of discount and warehouse stores. It is the largest corporations in the world in terms of revenue. Walmart is involved in grocery and general merchandising retailing (Barbaro, 2007). In terms of revenue, it ranks as the second largest retailer in the world. Walmart is the largest employer in the world and serves in fifteen countries through its over 2 million employees and 8500 stores. The first retail store was opened in the year 1962.

Mission vision

Walmart's mission is given hereunder.

"We save people money so they can live better."

This was the mission and the purpose of forming the company by Sam Walton. The legacy of the founder has been carried through the years and the company is dedicated to accomplish this mission by benefitting customers and members across the globe. The company has delivered on its promise through its Every Day Low Pricing concept (Walmart, 2010). The integrity and hard work is embedded in the very culture of the organization. The major aim is to make a difference in the lives of customers, members and associates. This is the mission around which all the strategies of Walmart have been devised.

Primary stakeholders

The primary stakeholders of the company are its customers, employees, board members, suppliers, and distributors.

Porter five forces analysis

Supplier power

When it comes to supplier power, the company exercises great power over the suppliers in that the Walmart suppliers comply with the Walmart's terms to become a Walmart supplier. Walmart is a customer of choice for these suppliers and gaining the shelf space at Walmart is one of the biggest challenges for the suppliers related to a particular industry. In addition, Walmart also produces mnay of its own products (Troy, 2011). Hence, if the customers raise price, Walmart will not be affected much. When it comes to the suppliers of Walmart, there is very stiff competition which will drive out any of the supplier's ability to dictate prices to the company. Hence, it is at an advantage when it comes to supplier power (Porter 2008, p. 2). In addition, the company plans to establish long term relationships with the suppliers. It treats its suppliers as partners and works closely with them. The suppliers of the company are few and will remain few but the advantage is that the company has chosen its suppliers wisely in that they offer quality supplies at economical prices. There is a pooln of suppliers out there out of which only the best ones ...