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Strategic Profile and Case Analysis of Walmart Essay

Wal-mart, is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores founded by Sam Walton in 1962. Moreover, the company is the world’s third largest public corporation, according to the Fortune Global 500 list in 2012. Whereas, Wal-mart also the biggest private employer in the world with over two million employees, and still is the largest retailer in the world. Wal-mart remains a family-owned business, as the company is controlled by the Walton family. We highlighted the most significant changes and achievement throughout the 42years of business milestone.

The first Wal-mart store was introduced at the year of 1962 by Sam Walton in Rogers, Arkansas. Whereas at the year of 1970, Wal-mart business growth, with Wal-mart stock first traded over the counter as publicity held company. In addition, 38 stores in operation with sales at $44. 2 million and 1500 associates. Furthermore, Wal-mart is the first company to reach $1 billion sales in such short period of times with $1. 248 billion, 276 stores and 21,000 associates. Other than that, in the year of 1983, first Wal-mart Sam’s Club is opened and for the eight consecutive year, Wal-mart rank no. among general retailers in Forbes magazine.

During 1990, Wal-mart is expanding their business into international market. Wal-mart opens two units in Mexico City and 45 states as well as Puerto Rico. As the business growth increasing, in 1995, Wal-mart stores had 239 Supercenters, 433 Sam’s Club and 276 International stores with sales at $93. 6 billion and 675,000 associates. Before entering into year 2000, Wal-mart already reaches more than 1million associates. As in 2000s, Wal-mart received various kinds of recognition and award like Global Most Admired All-Stars list and Most admired company in America.

The purposes of case analysis are despite a lot of difficulties faces by Wal-Mart yet Wal-Mart still earning and remain a very strong competitor to replica or overtake. Wal-mart provides large-scale of discount superstore or warehouse shopping is one of their strategy compare to their competitor. Even though the same product can be purchased at different types of retailers, but it is difficult to replicate the convenience, price and diversity of merchandise found at a Wal-mart. It builds significant entry barriers for potential competitor to enter such as Target and Costco.

This case study also identified the strategies used by Wal-mart in dealing external and reputational challenges which include environmental and community-impact issues. Wal-mart sell more organic and environmentally friendly product and make company facilities and trucks more energy saving. In order to show their sustainability efforts and localized charitable giving to help symbolize it as being a responsible corporate citizen and a good neighbour. Wal-mart also stresses its benefits to suppliers and communities as well as its commitment to provide affordable health care and competitive wages for its associates.

Furthermore, Wal-mart had a tough, low-cost procurement tactics, leading-edge information systems and “rocket-science” logistics in dealing their supply chain innovation and people strategies. In addition, Wal-mart legendary inventory management can record trends and predict future need and also it can be documented, and shopping habits are noted. Lastly, Sam’s Club allowed Wal-mart to expand into international markets and are looking to focus on the right challenges for the short and long-term success in marketplace, the company must also ensure it is applying greatest resources against its greatest strategic challenge across the enterprise.


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