The large scale retail sector consists of multiple companies of very heterogeneous sizes. This disparity can be explained by the strategy adopted by certain companies to grow rapidly in order to be a market giant, by implementing waves of fusion-acquisitions, which make it possible for the brands to acquire a strong external growth. This phenomenon takes place mainly in Europe, the playground of major retailers and MNCs operating large discount stores. Parallel to this tendency, was born, in the United States, another model which allowed the emergence of the world leader in retail: Wal-Mart.
Since 1962, the year when Wal-Mart first opened its doors to the public, the brand has gradually risen to power, triggered by the growth of its domestic market (the United States) which constitutes the largest international market in consumption. Today, Wal-Mart is the veritable giant of retail and is the leading global company according to Fortune 500 with a growth of 9.5%, thus reaching turnover worth $312.427 billion, a profit of $11.231 billion and 1.8 million collaborators. The company has more than 6,100 stores including 2,285 stores in the United States.
Wal-Mart's primary activities in its "business portfolio" include the stores located within the United States. The strategy of internal growth carried out since the creation of the company has enabled it to control the whole of the American domestic market.
The company's internalization strategy is very recent. Indeed, the first establishment ,Mexico City, goes back only to 1991. That makes it possible to explain weak statistics by Wal Mart stores abroad (1,170), compared to competitors, such as Carrefour (9,600 retail stores).
[...] The customer receives friendly site designs, efficient order fulfillment, fast delivery and professional customer response. The processing of returns, refunds, and rebates is done quickly Although e-commerce and online sales are picking up, they continue to be marginal in face of the traditional shopping; therefore, opportinties abound for the companies to get their act together and increase online visibility Threats Economic and financial situation The economic slowdown poses a veritable threat. There is no way of preventing it and no way to change it. [...]
[...] To conclude, we will examine the strategic intent and mission, as well as offer alternatives and recommendations for Wall- Mart General Environment Analysis The greatest challenge posed at the time of a strategic choice is an efficient comprehension of the external environment, the analysis of the changing structure of industry and realization of the strategies adopted by the direct competitors. The organization should also address the various internal and external constraints. The PEST analysis POLITICAL Wal-art shoul turn its attention to emerging countries with a high growth. [...]
[...] The various actions required to provide customer loyalty is a current trend in the industry and Wal-Mart is one of the most efficient in this field thanks to special offers, coupons and competive pricing. Moreover, in a supermarket, which stocks different brands, customers get more power owing to the increase of competitors. The only way to differentiate itself is to offer more attractive prices, an efficient marketing and promotion strategy and implement customer relationship management. Finally the recent global crisis increases the expectations and the power of the customers. [...]
[...] That's why we can say that Wal-Mart has made the difference and justified its position as a global leader. So even if the competition never ceases to grow and be aggressive, Wal-Mart sustains its leadership role and is not worried about its principal competitors. Finally, we can also say that the bargaining power of the existing competitors is not the same in the different areas in which the companies are present. In fact, in the United States, Wal-Mart is well represented and is indisputably the leader and benefits from a relatively good brand image, but in Europe and other areas, some of the main competitors have more power and better brand image. [...]
[...] The payment, being based on the policy of Costco, which had just opened its inaugural warehouse in the city, caused protests not only by Wal-Mart, but also by Sears, Target, Bloomingdales' , and Home Depot. When the other large stores threatened to leave Chicago to settle in the suburbs, the city was forced to give up its project of improvement of the living conditions of the workers in favor of the trade. Marketing The biggest source of marketing weakness stems from Wal-Mart lobbying to expand into new markets. [...]
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