Wal-Mart Stores, Inc.

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Wal-Mart Stores, Inc.

Wal-Mart is the largest retailer in the world, founded by Sam Walton in 1962. It focuses on discount and low prices of various products, even with a branded product. Entering into a globalization era, Wal-Mart has used technology advances in order to improve its business efficiency.

SWOT Analysis

There are a lot of strengths that Wal-Mart has due to its great success in doing a business. Since Wal-Mart offers many job opportunities to people with or without college education, it becomes the largest employer in the United States. $288 billion in sales has been achieved due to its aggressive growth strategy. Global market is also one of the strengths as it offers some branded products recognized in worldwide. Incredible logistics system, the largest trucking system, is one of Wal-Mart's competitive advantages. They are able to ship merchandise from any of their numerous distribution centers in order to provide the cheapest and most efficient route.

A satellite network system allows sharing sales data with suppliers, distribution centers and the company's wide network of stores. The ability to cut prices on some products and a friendly-helpful customer service are great advantages for Wal-Mart's success.

The weakness can be derived from environmental side, where the large scale buildings cause a problem of traffic pollution and congestion. The employees of Wal-Mart can suffer a great deal as well. Many receive only poverty-level wages and horrible health care benefits. The location of stores in global market is not so strategic, thus competitors are gaining in the other surrounding countries. Wal-Mart tends to overstock products and have to put in on sale in order to turnover the inventories; it can reduce the gross profit. It has no flexibility in making any changes or improvement on its products due to...