Essay on Wal-Mart Case Study

2460 Words Jan 16th, 2010 10 Pages
1. Based on the company's external and internal environmental analyses (using SWOT analysis), outline the primary factors impacting Wal-Mart's strategy. Organize these factors by Stakeholder Group to prioritize expectations and identify conflicting pressures on the organization. INTERNAL ENVIRONMENTAL ANALYSIS STRENGTHS Capital Market Stakeholders: ▪ Has grown substantially over recent years and has experienced global expansion. According to exhibit 3 in the case, Wal-Mart's revenue has consistently increased. In 1997, they had revenues of $99,627 billion and by 2007 their revenue increased 250% to $348,650 billion. This growth had an impact on Wal-Mart's net income, showing that they were able to control their expenses while continuing to …show more content…
Wal-Mart has faced multiple accusations, charges, and lawsuits, many resulting in fines, including environmental violations, child labor law violations, use of illegal immigrants, etc. Side effects of these issues include communities rejecting expansion of stores in their communities. A large source of marketing weakness stems from Wal-Mart lobbying to expand into new markets. There are thousands of towns across the United States that have tried to block the introduction of Wal-Mart because of the economic impact that it has on small-town stores and shops. Wal-Mart has a damaged reputation because when they move into a location they end up "forcing" these types of businesses out of business. EXTERNAL ENVIRONMENTAL ANALYSIS OPPORTUNITIES Capital Market Stakeholders: ▪ To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets. The stores are currently only trading in a relatively small number of countries, leaving tremendous opportunities for future business in expanding consumer markets. Additionally, some markets are virtually untapped by the retail world. This provides a huge opportunity for Wal-Mart to expand, opening the door for unlimited potential for growth and profits. The globalization trend provides opportunities to Wal-Mart to expand into more of the international market as the trade barriers continue to come down around the world.

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