GROUP

PRESENTATION
Company : Wal-Mart
 BUSINESS BACKGROUND OF WAL-
MART

• Founded by Sam Walton in 1962 and incorporated in 1969.

• Have 11,503 stores and clubs in 27 countries with 55 of them operating
under different name (Michelson et al., 2018).
• Cornerstone of Wal-Mart business strategy is the everyday low price.
• Low price was the main focus of its founder as he opt to this strategy to
get high volume sale at a lower profit margin.
 DESCRIPTION OF RETAIL SECTOR

• The firm is a global retail organization that specifically deals with retail
industry.
• The global retail market is marked with stiff competitive of major
corporation competing for market share and market presence (Chan,
2017).
• Most retail firm’s entry to global retail is through mergers and acquisition.
• Diversity of global retail market largely affect multinational retailer’s
operations
 PRODUCTS AND SERVICES OF
WAL-MART
Products

• Movie and music

• Jewelry
• Grocery
• Health and beauty
• Sporting good and fitness
• Electronics
• Clothing
• Footwear
• Home and furniture
• Craft suppliers
Services

• Wal-Mart-2-Wal-Mart
• Wal-Mart.com
• Wal-Mart Money Card
• Wal-Mart Pay
• Financial Services
 KEY ISSUES FACING WAL-MART

Issues concerning employee relations

• Poor wages that are below the average wage rate of workers (Perkins,
2017).
• Poor working condition of forcing workers to work off-the-clock and
denying overtime payment
• Company alleged to be discriminating women and showing gender bias.
• Allegation of the company wrongfully terminating employees
• Opposing labor unions
• Issues concerning business operation

• Thin profit margin arising from cost leadership strategy

• It minimize selling price which reduces profit margin
• Cost leadership strategy model is easy to copy
• Lack of specific price and brand competitors unlike other groups such as
Amazon
• Competitive disadvantage against high –end specialty sellers.
 JUSTIFICATION OF THE ISSUES FACING
WAL-MART

• Impose challenges of on the ability of Wal-Mart to withstand threats

• It has led to the high rate of turnover in the company.
• It has resulted into low profit return.
• Led to loss of market margin because of stiff competition.
• It has led to numerous lawsuit against the firm
 SWOT ANALYSIS OF WAL-MART

Strength

• Aggressively exploiting global expansion opportunities

• Global organizational size that guarantee growth and expansion
• Global supply chain that provide market resilience from local supply
disruption.
• Highly efficient supply chain realized through use of advanced technology.
• Advanced technology is used in monitoring and controlling movement of
products through supply chain.
Weakness

• Low profit margin realized from cost leadership strategy (Storer & Reich,
2019).
• Low-selling price minimizes profit margin which relies on sales volume.
• Lack of significant competitive differentiators except for the business size
and price.
• High-end specialty retailers have an upper-hand in retail business than
Wal-mart.
• Business vulnerability to innovative competitors like Amazon.
Opportunity
• Expansion and improving business practice overseas
• Improving human resource management of the company to harness the
competitive advantage of the company.
• Attracting talented workers and having high retention of employees.
• The potential high growth economic condition that the company has.
• Improvement in quality standards
Threat

• Retail global market condition and the constantly changing consumer

perception.
• Healthy lifestyle trend that render Wal-Mart products as unhealthy.
• Most retail stores do not prioritize healthy lifestyle products in its stores
(Luce, 2016).
• Aggressive competition that threatens the market share of Wal-Mart.
• Startup and new entrants that flood the market.