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NUR 500Walmart Strategic Process and Analysis Executive Summary Edited

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Analysis.edited.docx




Walmart Strategic Process and Analysis

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,NUR 500
Analysis.edited.docx


Walmart Strategic Process and Analysis

Executive Summary

Wal-Mart is the biggest retailer in U.S. and also one of the biggest multinational companies

in the world. It is well-known for its low-cost structure and has been doing very well despite of

the current market instability. However, it still faces threats from competitors in the retail

industry and has weaknesses to be improved in the future. To help Wal-Mart achieve more

tremendous success and sustain its competency, this paper will cover an all-rounded and detailed

business analysis on Wal-Mart and the industry it is currently in. The analysis will touch on

different perspectives, such as Wal-Mart's strength, opportunities, weaknesses and threats.

Moreover, a brief overview of the retail industry and Wal-Mart's history are provided to

facilitate a more profound and better understanding of the analysis on Wal-Mart. Walmart is a

publicly-traded family-owned business that operates a chain of hypermarkets, discount

department stores, groceries, and retail shops all around the United States and other countries

around the globe.

Walmart leads in the physical space in the online retail business. This retail firm is in constant

competition (Jean-Paul, 2020). However, Walmart has grown its marketplace for an extended

period compared to competitors. The company started as a grocery and retail shop that relied on

physical space. Amazon started its operations as an online bookseller company that later

expanded its online business to selling other products. However, Amazon recently introduced its

online services and has invested massively in digital services and technology (Jean-Paul, 2020).

This paper explores VRIO or Value Chain analysis, a PESTLE analysis, and a Five Forces model

for Walmart organization.

,NUR 500
Analysis.edited.docx




1.0 Introduction

1.1 Company Background

Walmart Inc. is a leading American multinational retail corporation operating a chain of

hypermarkets, grocery stores, and department stores. The corporation is headquartered in

Bentonville, Arkansas (Lu 2019). Founded in 1962 and incorporated in 1969, Walmart has

grown to become one of the world's largest firms. As of 2020, Walmart generated USD 548.74

billion in revenues, making it the world's largest firm as listed by Fortune Global 500 (Pingolia

2020).

Among its other accomplishments include being the world's largest private employer with a 2.2

million workforce and the largest grocery retailer in the United States by 2019 (Lu 2019).

Walmart's evolution over the past five decades is impressive.

The company's story started with Sam Walton's vision for excellent value and customer

service. Walton opened Walmart's first store in July 1962 in rural areas of Rogers, Arkansas, to

focus on early growth by avoiding direct competition from retail giants at the time (Pingolia

2020). Walmart's growth was exponential; within the first decade of its operations, it became one

of the United States' most prominent retailers. Having conquered the local market, Walmart

began expansion projects into the international market. It started by opening a store in Mexico

and then proceeding to Canada, Shina, Germany, and the United Kingdom. Global strategies

either establish new stores or acquisitions. According to Pingolia (2020), its global operations

constitute 6,101 stores in 26 countries.

Walmart is driven by the vision to become the destination for customers wishing to same

money regardless of what they purchase. Over the last five decades, the company's immense

success is attributed to the simple idea of selling more for less. The strategy has helped the brand

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