Business Management and Strategic Management: Wal-Mart Case Study

Running Head: STRATEGIC MANAGEMENT 1
Business Management and Strategic
Management: Wal-Mart Case Study

STRATEGIC MANAGEMENT 2
Table of Contents
Introduction.................................................................................................................................................3
Company Description..................................................................................................................................3
External Analysis (Porter’s Five Forces).......................................................................................................4
Industry Rivalry (Moderate)....................................................................................................................4
Bargaining Power of Buyers (Low)...........................................................................................................4
Bargaining Power of Suppliers (Low to Moderate)..................................................................................4
Threats of New Entrants (Moderate).......................................................................................................5
Threats of Substitutes (Moderate)..........................................................................................................5
Company’s Situation Analysis......................................................................................................................5
SWOT Analysis.........................................................................................................................................5
Strengths.............................................................................................................................................5
Weaknesses.........................................................................................................................................6
Opportunities......................................................................................................................................6
Threats.................................................................................................................................................6
Financial Analysis.....................................................................................................................................7
Conclusion and Strategic Recommendations..............................................................................................8
Appendix:..................................................................................................................................................11

STRATEGIC MANAGEMENT 3
Introduction
Strategic analysis is the process of evaluating the position of company in relation to its external
and internal environments. There are various frameworks and models of strategic management
which can be used by an organization to analyze the external and internal factors of the
environment. This report is focused on the strategic analysis of Wal-Mart Organization
considering the growth and changing retail landscape given in the case study. As per the given
case, Wal-Mart is a multinational corporation that is engaged in offering retail services to a
larger population all over the world. The company has been a strong force for enhancing the
living standard in most of the rural trade areas. This report analyzes both internal and external
environment of Wal-Mart under changing landscape of retail industry. To analyze these
environmental factors, different strategic frameworks are used such as SWOT analysis and
Porter’s Five Forces analysis. Additionally, it includes the financial analysis of Wal-Mart on the
basis of its growth in the given case study. At the end, recommendations are given which can be
used by Wal-Mart to resolve the strategic issues and attain sustainable competitive advantage in
global retail industry.
Company Description
Wal-Mart is an international company that offers retail services to the population across the
world. The organization was founded in the year 1962 by Sam Walton and it has its head office
in Arkansas, US. Wal-Mart is operating its business with an effective and attractive mission
statement i.e. “Saving people money so they can live better”. It is an American retail company
that operates a chain of supermarkets, grocery stores and discounted stores. The products of the
company include electronics, clothing, footwear, jewelry, toys, photo finishing, home and
furniture, movies and music, party supplies and pet supplies. In addition to retail products, this
company also owns and runs its brands such as Great Value and Sam’s Choice. Under these two
brands, the company produces its own goods and products. The case study shows that Wal-Mart
has experienced a significant growth till 2015 and it is able to expand its operation in more than
28 nations including United Kingdom, Brazil, India, Japan, Canada, Africa, Central America,
Mexico etc. The current figures show that it has 11,718 clubs and stores in 28 nations. Between
2010 and 2015, Wal-Mart in US was able to double its sales of its products. The company is