Explore BrainMass

Strategic and Business Plan for Walmart

Review and analyze the vision and mission statement. Is the company following the stated vision and mission?

Complete an external assessment, utilizing Porter's model for a competitive analysis

Evaluate the organization's Intensive Strategy, in the areas of Market Penetration, Market Development and Product Development

Construct a SWOT analysis for the organization

Review your research and based on your conclusions, what corporate strategy would you recommend for the next five years of operations?

David, Fred. R. (2009). Strategic management concepts (12 th ed.).
Upper Saddle River, NJ : Prentice Hall.

Solution Preview

Wal-Mart operates both retail stores and super centers across the U.S. The retail business is Wal-Mart's primary income earner and the foundation of the Wal-Mart empire in which the super center dominate the retail market offering the traditional retail household wares as well as groceries. The company also operates a chain of membership warehouses similar to Costco and B.J.'s, called Sam's Club, named after its founder Sam Walton. Since 1991, when Wal-Mart opened a Sam's Club in Mexico, the company has been international and has a separate international division which comprises the third arm of the organization.

Wal-Mart's mission, as stated in their corporate site, is "Saving people money to help them live better". The company archives this by offering the lowest price possible in the market, for any particular good, and now services have been added to the Wal-Mart stores and supercenters such as money transfers and check cashing services. The company has sought to get a banking license and already has its own credit card.

Following is an external assessment, utilizing Porter's model for a competitive analysis.

Barriers to Entry
In terms of competition, there is little, due to Wal-Mart's Automated supply chain and economies of scale which allow it to under price their competition. The supply chain and global network are barriers to other entrants. Wal-Mart also has the financial capital to protect themselves from any move to buy the company. The possible, but unlikely competitors would be supermarket chain who could expand their plants to include other merchandise and model the Wal-Mart Super Centers.

Wal-Mart has no real rivals. Similar companies in the same retail industry include Sears, K-Mart and Target and of the three, only Target has sought to compete by creating their own Super Centers.

Buyer Power
Wal-Mart consumers have relatively little power as individuals. Consumer groups have challenged Wal-Mart in the past, because the ...

Solution Summary

Walmart has global domination in the retail industry. This document outlines how to consruct and research a papre analysing the strategic and business structure of the comapny. Links to articles with the content required to complete the assignment, are provided.