Walmart- Situation Analysis

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Situation Analysis Wal-Mart is the world's largest retailer and the highest revenue-generating business in history. The company is incorporated in the United States of America and operates international outlets in a number of countries worldwide. In 1962, Sam Walton risked all his property to secure finances to start-up a new venture in the discounts retail industry. The store has had its ups and downs, but still thrives in the retail business to extend its growth to other regions across the world. The company has strategically established itself in the United Kingdom, Canada, Brazil, Mexico, Germany, Japan, and South Korea. The retail store does not deal with specific goods. However, it deals with various big box goods and services through its many retail shops world wide (Palepu & Healy, 2008). Big box stores are usually stores exceeding 50,000 square feet. Wal-mart’s competition consist of big box retailers such as Best Buy, Target, K-Mart, Lowe’s, Home Depot, grocery stores and smaller retailers such as Dollar General and Family Dollar. Many of companies these companies have reinvented themselves by stocking more inventory and offering lower prices than Wal-mart on particular products. The analysis of the external environment presents the Wal-Mart retail stores with a number of opportunities. Firstly, due to its stature in the industry, Wal-Mart is presented with an opportunity to seek strategic alliances and mergers with other leading local and global retailers focusing on a given market niche. Additionally, analysis of the external environment suggests unmet targets in the supercenters business. Therefore, this presents Wal-Mart with an opportunity to continue with its current supercenters strategy. The emergence of new locations and store types present Wal-Mart with an opportunity to exploit market development through diversification to mall-based

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