Running head: STRATEGICRESEARCH PROJECT
Strategic Research Project
March 18, 2011
Wal-Mart's Strategic Research
The number of companies in the US is increasing and Wal-Mart understands the market for their products. Knowing the number of potential customers, their product preferences, and the weaknesses of their competitors has helped Wal-Mart become the world's #1 retailer. This report provides strategic research for Wal-Mart along with a recommended five-year corporate strategy.
Vision and Mission Statements
Wal-Mart's mission and vision is "We save people money so they can live better," (Walmart, 2011, para 20).
The statement is brief and inspiring, which makes it easy to read, understand, and it creates positive feelings. Several characteristics are missing from their mission statement that could include other classes of people but it helps to identify a general direction to guide the company. Statements could be included that would indicate that the company is being environmentally responsible and more components could be added to be more effective.
Wal-Mart seems to be following their mission and vision statement by selling their products at a low price and their growth rate shows that people believe that they save money by shopping at their stores.
Wal-Mart is a global company so their challenges extend beyond the local competition but they are able to maintain an acceptable profit by understanding and monitoring their industry's forces.
Rivalry among competing firms and the Potential Entry of New Competitors
Wal-Mart's top three competitors in are Target, Costco Wholesale, and Carrefour, (Hoovers - Wal-Mart, 2011). They all offer comparative products at competitive prices and they rely on profiting from a high volume of sales. Manufacturing industries are reducing manufacturing costs, which can be an opportunity for a new company to compete in the retail industry because Wal-Mart's customers seek low prices.