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Walmart SWOT Analysis and Strategy Reccomendations

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?

Wal-Mart. When selecting to research a company, always select a publicly traded firm as that is where your financial data and corporate projections will be provided for you.
Now let's look at your specific question and break it down so we do not miss any components.

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

Action:
First procure the vision and mission statements from the corporate website, then read the third party information about the company for 2009 and 2010. Here are a couple sites as examples:
http://www.fastcompany.com/blog/ariel-schwartz/sustainability/how-does-wal-marts-2009-sustainability-report-shape
http://www.greenbiz.com/news/2009/02/01/new-wal-mart-ceo-says-sustainability-drive-will-continue-full-speed

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

Action:
First, use the link below to familiarize yourself with Porter's Model. http://www.quickmba.com/strategy/porter.shtml
Then return to the corporate site and use the INVESTOR information from the corporate site to complete the analysis.
http://investors.walmartstores.com/phoenix.zhtml?c=112761&p=irol-irhome
Also take the 5 components of Porter's model and Google the term, along with the company name, in order to locate specific information on each area.

Example for search format: Wal-Mart 2009 supplier power
Result of search: http://econpapers.repec.org/article/eeejbrese/v_3a62_3ay_3a2009_3ai_3a5_3ap_3a535-541.htm

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

Action:
First define the primary term - Intensive Strategy and provide graphics when available and site sources always. http://smarttogether.org/clc/level3.shtml

Then apply the concept to the international markets the company has entered. Two contrasting case studies for Wal-Mart would be their entry into Germany and their entry into China. There is a great deal of third party documentation and juried articles on these topics. Try Google Scholar in your search for articles.

4. Construct a SWOT analysis for the organization
First define the components of SWOT, Strengths; Weaknesses, Opportunities and Threats, then apply each to the research from business journals online which have articles from 2009 to 2010.

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

Action: This is easy. Find the reoccurring criticisms of the company and address these in your proposed strategy. If you found opportunities such as entering new markets or selling via cell phone app, etc. This should be supported in the SWOT, so it is usable in the conclusion.

Here is link to APA site to help with your format and citing rules.
http://www.apa.org

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

The solution reviews and assesses Wal-Mart using Porter's model for competitive analysis and then evaluated its intensive strategy, along with a SWOT analysis in order to make recommendations on it's market and development areas. 1237 words with references.

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