Wal-Mart Stores: Company Background, Market and Submarkets, PESTLE Analysis, SWOT Analysis, and Strategic Implementation

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Background of Company and Industry
Wal-Mart Stores is an eminent American retail organization operating with a multinational
structure of operations. The operations of Wal-Mart Stores are diversified among the three kinds
of stores, namely hypermarkets, discounted department stores along with a chain of grocery
stores. Sam Walton established the organization is the year 1962. Currently, the organization has
about 11368 stores operating in more than 27 nations. This is the largest organization in the
whole world in terms of revenue, which is more than USD $500 billion per annum, as
highlighted in the 2018 list of Fortune Global 500 companies. The organizations also hold the
reputation of being the most profitable retailer as well as successful employer in the whole US.
More than 60% of revenue generated by Wal-Mart Stores comes from their US operations
(Laudon & Laudon, 2016).
The current business objective as well as the mission statement of the organization is
same: Save people money so that they are able to live better. The huge success of the
organization is achieved on the basis of some generic policies and foundations,. All these
policies have been successfully integrated in to the organizational culture of Walmart. Some of
these highly popular policies incorporate:
 Open Door Policy: The doors of the managers are always accessible by the employees f
all hierarchical standards.
 Sundown Rule: The employees should be answering the entire customer or supplier
related queries on the day itself, when the questions have been raised.

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 The grass root process: Wal-Mart always tries to capture suggestions as well as ideas
depicted on the sales floor including the front lines and tends to implement them (Carroll,
Primo & Richter, 2016).
 Basic Beliefs as well as Values: respect for individual stakeholders, prompt service to all
customers as well as striving for excellence regarding all the cornerstones in business.
 The 10 foot rule: Making eye contact, offering help to the customers as well as greeting
people (Nygaard et al. 2017).
Lastly, it should also be highlighted that that the organization also follows the principle of
servant leadership. the phenomenal success of the organization also allowed the company to
increase their starting rate for all the hourly associates in the US to $11, expand their maternity,
as well as provide parental leave benefits along with one time cash bonus that is generally
applicable for the associates of up to $1000.
Market and submarkets of Wal-mart
As in the year 2019, Walmart has bene occupying 11300 store locations. The majority of
the stores of Walmart are being operated under the brand name of Wal-Mart, which incorporates
a large format of Walmart supercenters as well as small format neighborhood markets of
Walmart. However, there are other stores under the organization that are operated under the
domestic as well as international subsidiary companies of the organization. One the primary
submarkets of the company are Sam’s west Inc. In the financial year 2019, the organization
reported a total sales volume of about USD $58 billion dollars. Sam’s Club has been projected
more like a local subsidiary of the organization (Arora et al. 2016). There are about 599 Sam’s

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Club in 44 of the US states. It is also operational in the countries like Mexico, Brazil and China
as well as ecommerce websites in the US as well as Mexico.
A net sale of $57.84 has been reported from Sam’s Club. Other than promotional
products as well as specific local expectations, Sam’s Club has also been profiting from two
price levels of $45 and $100. Another market of Walmart has been constituted by Walmart de
México y Centroamérica. They are the largest retailers in the entire Latin American circuit with
more than 2400 stores as of the year 2019.
In the US as well as the international business circuit, the company comes across heavy
competition from several competitors, which belong to the front line row of the industry. The
first and the most potential competitor of Wal-Mart is Amazon. There are several retail business
channels which are diversified and incorporate a large number of demographic bases. The
organization has a sales value of $136 billion as of the year 2017. Keeping product as well as
pricing, reasonable as well as appropriately matched with the target audience, the organization is
becoming one of the biggest online retail bases all around the world. In terms of online presence
as well as retail marketplace, Alibaba is one of the biggest market competitors of Walmart. The
strategic importance of Alibaba as a market competitor is very big. This is because; the market of
USA is very wide and fragmented. There is high level of market saturation so far as retail
business expansion is concerned. Hence, in this context, it can be argued that Walmart will
definitely try to enter as well as occupy significant market shares of large Asian economies like
China as well as India (Power & Mitra, 2016). However, Alibaba has already attained a market
cap of $265 billion as of the financial year 2017 and the sales value have been $21.5 billion, on
an average per annum, for the last 5 to 10 financial years (Power & Mitra, 2016). Hence, it is
evident that the market presence of the organization is very high and as an outcome, it would be