Walmart Situation Analysis Paper

838 Words 4 Pages
Situation Analysis

Segmentation & Target Market Analysis

Wal-Mart Market Segmentation

Wal-Mart market segmentation indicates the way they identify group or divide their customers into groups. They conduct research that is aimed at identifying trends and predilections among certain groups of customers. Wal-Mart uses market segmentation to identify where they should open stores and what types of products they should carry in the stores. Wal-Mart uses age based and geographical segmentation. Geographical segmentation involves doing market research to identify where the greatest needs for stores. Geographical segmentation involves pairing customers based on their physical location. One example would be that Wal-Mart would sell snow shelves and ice-melt in cities like Miami because there is no
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Expertise in information systems: Wal-Mart has placed a great deal of money in improving their supply chain system. The company is seeing a great deal of finical savings by inventory level, orders, sales and other information.
3. Wide variety of products: Wal-Mart is offering a wide variety of products. They now offer food, clothes, fitness, and home products etc. They have also expanded their private label to include many of categories.
4. Cost of governance: Wal-Mart is now operating internationally. With the expansion they now they follow international laws.
Weaknesses
1. Labor associated lawsuits: Because of Wal-Mart’s failure to provide a proper work environment, they have faced many lawsuits by employees both current and past.
2. Increasing employee turnover: Due to Wal-Mart’s low employee wages and inadequate work environment they see an increase number of employee turnover.
3. Adverse publicity: Wal-Mart faces negative publicity for poor employee benefits and poor working conditions.

Opportunities
1. Retail market growth in up and coming markets: Wal-Mart will focus on untapped markets. The company will increase sales by 5-7 percent with opening new

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