BUSN 1010
Wal-Mart Analysis
A case study on the world’s largest retailer.
Executive Summary
Wal-Mart Stores Inc. is a multinational retail corporation headquartered in Bentonville,
Arkansas. They operate both discount department stores and warehouse-style stores, most
popularly Walmart and Sam’s Club. They have been ranked number one on Fortune Magazine’s
Fortune 500 Index for the past (ve years, and have held the top spot ten times since 2002, being
bumped to second by Exxon Mobile only in 2006 and 2009.
Four parts to their corporate strategy include:
1. Dominating the retail market.
2. Expanding in both domestic and foreign markets.
3. Creating positive company and brand recognition
4. Branching into new sectors of retail.
Two criticisms of Wal-Mart are:
1. Opposing employee’s effort to unionize.
2. Expanding into non-retail field.
Wal-Mart is constantly looking to maintain their mission statement of “We save people money
so they can live be7er.” In doing so, they will need to address the two largest criticisms against
them as well as focus on their corporate goals.
1 | P a g e
Table of Contents
EXECUTIVE SUMMARY PG ONE
TABLE OF CONTENTS PG TWO
COMPANY AND INDUSTRY OVERVIEW PG THREE
TIMELINE PG FIVE
BUSINESS STRATEGY OVERVIEW PG SIX
COMPETITIVE STRATEGY PG NINE
STRENGTHS, CRITICISMS AND OPPORTUNITIES PG THIRTEEN
FINANCIAL CONDITION PG FIFTEEN
CONCLUSION PG SIXTEEN
WORKS CITED PG SEVENTEEN
2 | P a g e
Company and Industry Overview
Wal-Mart Stores, Inc. (doing business as Walmart) is a multinational retail corporation
headquartered in Bentonville, Arkansas. They operate both discount department stores and
warehouse-style stores, most popularly Walmart and Sam’s Club. Walmart grew from a single
location in Rogers, Arkansas into over 11,000 retail stores in 27 countries, 10 of which also have
access to the catalogue online. Walmart employs over 2.2 million associates across the world-
1.3 million of which are American workers (Walmart.com). Walmart has been number one on
Fortune Magazine’s Fortune 500 Index– which measures the wealthiest and largest world
corporations- ten years since 2002, only being displaced to number two by Exxon Mobile in
2006 and 2009 (Fortune). Walmart’s (scal year ends in January and its 2014 sales reached
$476.29 billion, with a net income of $16.02 billion, growing 1.52% from the previous year
(Hoovers). Walmart locations- sometimes under another name such as Asda in the United
Kingdom and Seiyu in Japan- are found on 5 continents (every except Australia and Antarctica).
Walmart’s mission statement is “We save people money so they can live be7er.”
According to President and CEO Doug McMillon’s opening remarks during Walmart’s annual
investors meeting in October 2014, Walmart is focused on improving four key dimensions of
customer service: price, assortment, experience and access. These four key dimensions help
maintain their mission statement. Four parts to Walmart’s corporate strategy are dominating
the retail market, expanding in both domestic and foreign markets, creating positive company
and brand recognition and, (nally, branching into new retail sectors. Walmart strives to meet
these four strategies while also maintaining their quality standards and customer service
strategies. Two main criticisms of Wal-Mart Stores is their opposition to employee’s e5orts to
3 | P a g e
unionize and their expansion into non-retail field, which is a direct conLict with one of their
corporate goals.
Walmart places a strong emphasis on community outreach by o5ering low prices to its
consumers as well as oMen involving the company in community services and providing
scholarships to distinguished students who are associates or dependents of associates.
The retail industry in the United States shiMed aMer World War II. Before the 1940s,
retail was dominated by locally owned corner stores. Catalogs were uncommon but not
unheard of, and choices were limited. While the invention and dispersing of the automobile in
the 1920s aided the concept of larger stores, it wasn’t until aMer the Second World War that
