Like many companies in the world, Wal-Mart was focusing on creating values for shareholders. In the past few Shareholders' Meetings, shareholders are concern with the declining of share price. One of the problems arises from the poor stock performance is Wal-Mart poor performance on an international level. While Wal-Mart is very dominated in the United States and Canada, they are performing poorly in their international operations. In the early 2000s, Wal-Mart lost hundreds of millions in Germany, and they were out performed by Tesco, U.K.'s largest retailers.
SWOTWal-Mart is the world largest retailers. Their achievements are credited to their key strength. They have the most efficient logistic network to keep track of their inventory and data, and also between suppliers. Every time a customer purchases an item, this data will transmit directly to their suppliers regardless of where they are in the world. This data will inform the suppliers to make that product and repeat the cycle all over again.
Another key strength that Wal-Mart possesses is their transportation units. Most retailers relied on their suppliers or outside source to deliver their merchandise. Wal-Mart has their own trucks and drivers to pick-up merchandise from suppliers and transport it to their warehouse or Wal-Mart stores. This had helped Wal-Mart to be in control of their transportation system. Wal-Mart strength is also in their locations. They usually located in low rent, suburban areas, and close to major highways. Their location allowed Wal-Mart to be near with most of the target consumers, low income families. Wal-Mart is also the low cost leader in their industry. With their strategies and size, they were able to provide their customers with the lowest price.
With all of Wal-Mart success in North America, it is difficult to identify their weakness. Their weakness lies in their...