Wal-Mart Essay

297 WordsMay 21, 20152 Pages
Wal-Mart ranks as the number one company in the fortune 500 2014 edging out Exxon Mobil for the second time in a row. The external environmental forces that made Wal-Mart successful were: * Being market leader * Low cost leadership * Internationalization strategy These external environmental factors have paved the way for the company to be successful and led to the expansion and growth of the company as well as offered higher profit and stability for Wal-Mart. Being the market leader, Wal-Mart is the largest retailer in the world and its wide coverage sets it apart from the rest. Another factor was low-cost leadership enables Wal-Mart offer products at low prices and the company offers its grocery products at prices about 12% lower than the market. Wal-Mart constantly flexes its prices to suit the needs of the society from all walks of life. The internationalization strategy paved the way for business maturity. Wal-Mart was able to build a strong foundation for growth as the US market matures. These 3 factors are salient in a sense that it stands out from the rest. It provided Wal-Mart the stability that it needed and paved the way for growth and expansion not only locally but internationally as well. For instance, being the market leader is a salient one because none can compare to the ability of Wal-Mart to expand and made its presence known in many countries and at the same time generating profits and revenues for the company. All in all, Wal-Mart was able to use its resources to benefit the company and ensure firm foundation and hold on the retailing business sector. Reference: Fortune 500. (n.d.) Retrieved May 20, 2015 from http://fortune.com/fortune500/wal-mart-stores-inc-1/

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