I choose to focus on Wal-Mart as my Industry analysis because of their stability as a company and the ability to retain a customer base of all ages and races and income levels. WalMart diversifies and operates in four different store formats; Wal-Mart discount stores, supercenters, which are opened 24 hours a day, neighborhood markets which curtails to the urban customer base and Sams Club which are geared towards the small businesses that buy bulk and large families that might be attracted to buying larger quantities. Wal-Mart caters to every region’s differences in product preferences’ thus earning the philosophy, different stores for different folks.” (Associated content.com, 2010a) Wal-Mart had reported sales earning growth of 408 billion dollars in revenue in fy2010, a 1% increase from 2009. The company operates 8,416 stores worldwide with 4,000 of them in international markets such as Germany, South Korea china and the United Kingdom. In three decades, Wal-Mart had grown from its Arkansas roots to become the world’s largest and most powerful retailer.
Wal-Mart’s industry environment can be easily described as a retailing empire. Its buyers were tough negotiators who didn’t allow suppliers to increase their prices thus allowing consumers to take advantage of quality products and the lowest prices possible. As a result, Wal-Mart is responsible for selling 35% of all pet food, 24% of all toothpaste and is considered the largest volume of jewelry, groceries, DVD’s, CD’s toys, diapers, sporting goods and many more. (associatedcontent.com, 2010b) Opportunities for Wal-Mart are vast as they continue to grow financially with its huge base of power. This enables them to extract significant price concessions from its suppliers. Things are looking grand for the future of this company....