Wal-Mart: Case study

Mathew M.

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Wal-Mart: Case study

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Themes

Wal-Mart, global retailing sector, global operators

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Abstract
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Abstract

The global retailing sector wields vast influence in the economy given the present standard of living in a chain connecting producers, employees and consumers. As contemporary retailers strive to expand their global footprint by exploiting emergent opportunities, they establish a social connection with the global populace leaving the sector a critical component of the larger economy. For instance, despite difficult economic conditions, the global retail industry continued to grow, building on the rebound in growth that started in 2010, demonstrated by currency-adjusted retail revenue rise by 5.1% for World's top 250 retailers in fiscal 2011 (Deloitte, 2013).

However, the reported growth for the global operators should not overlook the emerging wrenches into the already competitive landscape. As many problems are partly solved in the global environment, retailers must juggle with emerging challenges through short term solutions aligned to the long-term desire of accelerating their profitability.

Introduction
Background of Wal-Mart Stores, Inc.
Wal-Mart Six Year Financial Summaries
Effect of Government Regulations
Supply of inputs
Introduction of New Products and Creating New Markets
Competitive Environment
Noncompetitive Strategies of the Company
Conclusion

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Extract

[...] In support, the company has Related-Party transaction policies for the audit committee to review all material transactions which senior officers commit the company. Owing to its size, the company can have significant impact on the environment, human race and conservation of natural resources. Under the company sustainability program it runs four initiatives: social responsibility to promote economic empowerment for women and improved living; local responsibility through school nutrition forums, disaster preparedness, and making microloans; environmental responsibility through fuel saving technologies, eliminating landfill waste and stricter product sustainability guideline; company responsibility though stakeholder engagement in corporate governance (University Alliance, 2013). [...]

[...] However, the reported growth for the global operators should not overlook the emerging wrenches into the already competitive landscape. As many problems are partly solved in the global environment, retailers must juggle with emerging challenges through short term solutions aligned to the long-term desire of accelerating their profitability. Background of Wal-Mart Stores, Inc. Since opening its Rogers outlet in 1962 and its subsequent incorporation in 1969, the retailer has evolved to operate in three business segments: the Wal-Mart U.S. division, the WalMart International and the Sam's Club segment (Thompson Reuters , 2013). [...]

[...] Likewise, company failure in attracting qualified associates and restructuring to accommodate changing labor laws widely interrupts the financial performance already drained by fierce competition from rival retailers. Lastly, the company majorly depends on global sourcing which is challenging to locate qualified suppliers timely and efficiently owing to the instability in their political and economic climate (Walmart, 2013). For example, eventualities leading to interrupted deliveries translate to lost consumer confidence which consequentially affect the financial returns. Effect of Government Regulations The expansion program for Wal-Mart International, presently contributing approximated 29% net sales is affected by government interventions beyond the company control. [...]

[...] For instance, Wal-Mart International segment increased its investment in Newheight Holdings Ltd, a holding company that owns Yihaodian, an e-commerce business in China, to approximately 51% (Walmart, 2013). On the other hand, after conducting Get on the Shelf' competition, companies such as HumanKind water, Plate Topper, Snaplt have secured deals for their products in many Wal-Mart outlets (Kavilanz, 2013). WALMART 7 Competitive Environment Although the world's largest retailer, the company is faced with fierce competition from a variety of rivals operating as domestic, national and global outlets such as supermarkets, discounts stores, grocery units, drug specialty stores, internet-based traders (Walmart, 2013). [...]

[...] Walmart Walmart Annual Report: Form 10k. [Online] Available at: http://www.sec.gov/Archives/edgar/data/104169/000119312512134679/d270972d10k.htm [Accessed 13 September 2013]. WALMART 11 Walmart Walmart 2013 Annual Results: A History of Delivering Strong Results. [Online] Available at: http://az204679.vo.msecnd.net/media/documents/2013-annualreport_130108806067963477.pdf [Accessed 13 September 2013]. [...]

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