Walmart Case Study

Walmart Case Study

  • Submitted By: healyraby
  • Date Submitted: 10/21/2009 2:10 PM
  • Category: Business
  • Words: 3082
  • Page: 13
  • Views: 2



Since its foundation by Sam Walton in 1962 and its incorporation in 1969, Wal-Mart (WMT) has grown exponentially, enabling it to become one of the largest companies in the world; as demonstrated by its more then 5000 stores in 10 countries, close to $260 billion in sales and over 1.5 million employees. It is clear that WMT has been extremely successful at expanding its operations and going into 2005 it continues to push the envelope with new retail categories (online music store, financial services etc) and expansion plans for over 300 new stores in the U.S and approximately 150 international stores in pre-existing markets. Despite this success, WMT must take into consideration increasing competition. As the domestic market reaches saturation, the main issue facing WMT is how to sustain its extraordinary growth. To ensure that it maintain its growth at a rate equal to or better that its sales, it will have to implement domestic and global expansion strategies that address internal and external opportunities and threats.

To assess WMT’s quest for domination of the retail market we will begin with an internal and external analysis of its opportunities, followed by a financial analysis to assess its potential for sustainable growth. Lastly, conclusions are drawn in relation to company financial strengths and weaknesses from the perspectives of prospective investors and potential lenders.


The Retail Industry and its Competitive Landscape:
Today’s retail industry presents a dynamic competitive landscape marked by consolidation of department stores and the emergence of new specialty concepts.
Market shares in discount merchandise are being sought after by direct competitors Target and Costco, home renovation material is being dominated by Home Depot and more and more shares of consumer electronics are being captured by the likes of specialty discounters such as Best buy and Circuit...

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