Walmart Corp Case Study

Executive Summary

The purpose of this report is to give analytical view of current and future strategy to all interested sectors of society such as family, government, and mainly to the Wal-Mart corporation in order to identify the causes and the effects of possible future profit failure and to give recommendations to reduce it.

Research for this report included a review of current literature and information’s from various internet sources and articles.

Wal-Mart is the number one retailer in the United States and according the Fortune 500 Index by Fortune Magazine is the wealthiest and most powerful corporation in the world. Vision and strategy, which has been created by Sam Walton, is simple and has tree main parts.

I. Customer value and service

II. Partnership with associates

III. Community involvement

The major findings indicate that the corporation has not implemented the strategy in the best possible way. There are few recommendations, which could help the company work better. If Wal-Mart wants to be profitable in the future it might adopt a friendlier corporate attitude and demonstrate how it can be a good neighbour. Due to the fact that the company is driven by profit, it has closed eyes about? what is going on inside of the company. Wal-Mart needs to drop its anti-unionization policy and allow its as-sociates to organize themselves in unions. If the Wal-Mart wants to avoid capture, it might spend more money and more time to understand culture first and than enter the new market. Finally, if the company wishes to keep clear of the loss of potential cus-tomers, Wal-Mart should cooperate with government to make sure that suppliers com-ply with environmental laws and regulations.

Wal-Mart will need to put into effect these recommendations if the corporation wants to stay at the top of the Fortune 500, while simultaneously keeping a good reputation with merchandise for “Every day low prices”.

1. Introduction

Wal-Mart is the largest retail store in the United States, and is the largest retail company in the world. According to the Fortune 500, an annual list compiled and published by Fortune magazine ranking top 500 corporations measured by their gross revenue, is Wal-Mart one of the wealthiest and most powerful corporations in the world. Therefore holds position number one. Although, the company is still growing steadily, their strategy has not been implemented in the best possible way in 21st century, where the environment is so sophisticated. The purpose of this study was to analyse retail competitive environment as well as to recommend new strategies to achieve sustainable profits, satisfaction of customers and associates together with recommendation to retain the leading position in the market.

Information was gathered by review of current literature, various Internet sources, and video document about Wal-Mart Corporation.

Wal-Mart’s strategy was created decades ago and the executives of the company rely on many of the traditional goals and philosophies that Sam Walton left behind. There have been done many case studies, articles and reports on the topic “Why is Wal-Mart so successful?” This report will attempt to show analysis of the company strategy. It will begin by examining the background of the company, who they are and what they do in the world. Then the industry structure will be analysed according to Porter’s five forces model and SWOT analysis, followed by the core competencies of the company and their competitive advantage in the market. Finally the strategy recommendations and potential fallout will be described.

2. Corporate Mission and Background

Wal-Mart operates retail stores in various formats around the world and is committed to saving customers money. The story began in 1962, when visionaire Sam Walton opened the company’s first discount store in Rogers Arkansas. His business was defined and the policy still continues by three “Basic Beliefs” (Wal-Mart, 2008). The first one is respecting the individuals, which means to push Wal-Mart’s employees to excel in what they do. The second belief is service to our customer, where the stores respect a pricing philosophy to always sell items as cheaply as they can, while they provide excellent customer service. And the third belief is striving for excellence, that is to expand the stores, innovate, be creative and reach further into new markets. During 1970s, the retail industry became highly competitive,