Posted at 11.01.2018
The first Wal-Mart store was opened by Sam Walton in 1962. Today we can count 894 stores around United States which offers to customers' pleasant and convenient shopping experience. Each single store employs about 225 associates. The store is well feature wide, clean, brightly-lit aisles and shelves stocked with a variety of quality, value-priced general merchandise such as: Health insurance and beauty aids, automotive product, house wares, lawn and gardens items, toys, sporting goods, pet supplies, etc. . . .
In 1988, Wal-Mart developed supercenters to meet up with the growing demand for convenient. One stop family shopping featuring their famous Every Day Low Prices. This stores save customers time and money as they have got combined packed with grocery and their range of merchandise under a unitary roof. Those supercenters are nationwide and most of them are 24hours opened. Within we can found: bakery goods, meat and milk products, deli foods, frozen foods, condiments and spices, household supplies and beverages. The majority of those supercenters have specialist shops such as vision centres, health clinics, tire and lube express, hair salons, brand name fast-food restaurants, etc. . .
In 2008, Wal-Mart developed a fresh concept, the market-side stores. This is a small community pilot supermarket focusing on fresh meats at a good price for customers. They offer a brand new and expedient shopping experience for busy people who fancy a fairly easy react to the question, 'What's for dinner?
Wal-Mart objective will always be to serve customers with the quality products and save them money by providing them goods and services at low prices. This is in order to lessen the living costs of every single person.
Sam Walton said: "If we interact, we'll lower the price tag on living for everyonewe'll give the world an possibility to see what it's prefer to save and also have an improved life. "
Wal-Mart in addition has environmental goals:
They are seeking to be supplied 100 percent by renewable energy
To create zero waste
To sell products those uphold resources and the surroundings.
Another goal of Wal-Mart is to improve the sale of products by the double which are helping homes and consumers to be more as energy conserving they use to be.
Wal-Mart isn't only known for saving customers money and cutting on the expenses. Also, they are known for his or her unique culture that Sam Walton built on the cooperation with moral and values.
One of the essential value and customs is the Respect. Respect for customers, associates, suppliers and colleagues. It really is beneficial to built relationship with the community they can be serving and living within.
At Wal-Mart managers and associates believes that an open communication is the trick of serving customers needs at it best.
The Wal-Mart founder believes in team work as a best way to get power as the stores are growing. The teamwork philosophy has become more important over years.
Perceived as a part of Wal-Mart culture, the Cheer is a way to show they are simply proud. The cheer is taking seriously by employees and managers at Wal-Mart.
Sam believes at the fact that managers do not only manage behind their desks. They must be involved in each and every task and interfere with employees in a great way.
"It's more important than ever that we develop leaders who are servants, who listen to their partners - their associates - in a manner that creates wonderful morale to help the whole team accomplish a standard goal. " Sam said.
One of the main strengths is the fact Wal-Mart is benefiting from economies of scale which enables these to have cost advantages over their main rivals and competitors (Kmart, Safeway, Target). Wal-Mart is also known for its customer support. They have a good reputation in terms of dealing with customers and providing them with better service and hearing their concerns.
Another strength which Wal-Mart has gained through the years is the strong brand that have been established and kept. Wal-Mart is nowadays known internationally it's not anymore regarded as a national American brand.
Wal-Mart strategy and objectives was to provide customers with not only quality goods but also with the reduced prices possible. It has helped them to create a pricing advantage over its rivals. They made them be ahead of the list and therefore gained a higher market share due to the increase of sales they have been occurring over time.
One of weaknesses that Wal-Mart have is been Anti-Union. Not agreeing because of its employees to truly have a union is making the image of Wal-Mart collapse in conditions of employee caring and right.
Wal-Mart has been criticized for creating major problems relating to full time jobs and creating unemployment is some of regions where stores have been allocated and opened. These have played a large role in damaging an integral part of their reputation.
Nowadays, our company is facing an increase in the e-commerce sector. Wal-Mart need to take good thing about this and make an effort to increase its online sales by facilitating it more and improve its online service. And therefore using this method they could also be targeting and sibling a new market and customers. Thus increase market share.
The falling of a few of the trade barriers is definitely an opportunity for Wal-Mart to increase its foreign direct investment (FDI) and expand its brand name abroad by entering new markets and fulfill that specific market demand.
Another way of expanding and which can be an opportunity for Wal-Mart is to take over competitors that are not able to compete with it any longer in other to increase its sales and its opportunity to became bigger and more powerful than it is actually. Those opponents are mainly those in a few regions where Wal-Mart has been the cause of their closure down. Doing this might not only prevent workforce from been let go but it will produce a good image for the business as it might be regarded as the "Job Saver"
Wal-Mart is operating in a sector where there is a fierce entry of new competition to the market that will be threaten Wal-Mart by taking their customers and providing them with better quality products and low prices compare to Wal-Mart. However they should focus on making their customer services the best available for sale as customers do not always look for quality and price but also for customer service.
Economies of scale.
Good Customer service.
Known for unemployment problems in some regions.
Take Over competitors.
New opponents to the marketplace.
PESTEL examine the organization's environment and how would it affect the organization itself. It means: Political, Economical, Social, Technological, Environmental and Legal.
Wal-Mart is made in a wide variety of countries (USA, UK, China, Argentina, Brazil, Canada and India). Most of those countries are democratic countries in which they believe that every citizen has the to attend political meeting and vote on the certain age. However China for example is more as a Totalitarian. The government has absolute and centralized control. The political. That your country is impact which kind of economy system it is adopting.
Any economical problem such as the crisis happening now will affect on a means or another the spending of consumers that may reduce a certain consumption of certain goods
However even though there's a crisis consumers still will be consuming basic products and services that Wal-Mart are providing and offering at low prices in comparison to other stores.
Wal-Mart are based more on a market driven economy system with the consumers choosing the merchandise available and needed.
Wal-Mart is a company which does care about the society. They established many groups to help people like the military heroes to get degrees and helping those with problems with education giving donations.
"At Wal-Mart, we believe in a philosophy of operating globally and giving back locally. We know we can make the best impact on our communities by supporting causes that are important to your customers' right in their own neighborhoods. We're proud to be a "store of the city" for all the communities we serve by assisting to provide financial and volunteer support to more than 100, 000 charitable and community-focused organizations, and by using our locations to provide opportunities for our customers and associates to give back. "
Wal-Mart should be updated with all the information system and products systems that allow them to control their degree of stock and those technologies at the cashier desk.
Many consumers are now starting to be more green and try to become more environmental respectful, so Wal-Mart may have think to introduce any kind of strategy to show that they certainly value environment such as no bags at the cashier desk.
ASDA the Wal-Mart supermarket in UK have been the leader in the supermarkets reduction of packaging.
New employment law would affect them. For example, in a few stores, Canada for example, personnel don't have trade unions to protect their rights, so if a law came out o oblige all companies to take action, Wal-Mart will have to deal with it.
Wal-Mart customers and buyers do not have the power to bargain as there is a broad base of buyers which do not allows single buyers to require price reduction. They often purchase products in small quantities and they are loyal to certain products brand especially the need products.
Suppliers have not much power. They have to ensure a continuing high amounts of sales to be able to ensure their well being.
Wal-Mart substitute will be small retailers and corner shops which can be usually providing to customers higher prices compare to big grocery stores and supermarkets.
Wal-Mart rivals are numerous (e. g. Kmart, Safeway, Target) either been nationally in USA or internationally in other countries where they are a FDI.
In 1993, Wal-Mart have been sued by its opponents and been ordered by the trial court to raise it pharmaceuticals product prices and pay treble damages to three of local competitors which were claimed that prices charged by Wal-Mart for his or her pharmaceutical products have been lower than typical.
The economy of scale that Wal-Mart while others big supermarkets benefit from is playing an important role from preventing new entrant to enter the marketplace. It acts as a barrier to entry.
To ensure to their customers that the products offering will meet their needs and wants, Wal-Mart is spending so much time to achieve this objective. In order to do they are partner with thousands of suppliers for, every single merchandise which can be ranging: in one person shops to multi-national corporations.
Wal-Mart will not only care about choosing the right supplier which affords them with good quality product but they ensure that they keep the selection of supplier as diverse as is possible.
There are a few examples of Wal-Mart suppliers:
Currently, Wal-Mart is having as a objective to utilize suppliers headed for reducing the prices on specific products with reduce energy use for his or her customers.
At Wal-Mart, diversity is taking a large part of these goals and strategies they can be aiming to provide their personnel and associates with respectful and valued workplace as you can. They think that they are one of the world most diverse employers.
Been diverse company is having impacts on decision making and their strategies especially the one related to recruiting employees and workforce. Their recruitment planning is dependant on many ways and policies, one of them is having relationships with organizations that are representing minorities and various races and ethnicity backgrounds such as: DARK-COLORED, American Indian and Alaska Native, Asian and Pacific Islander, Gay Lesbian Bisexual Transgender (GLBT), Women, Mature and folks with disabilities.
According to the EEO report (Equal Employment Opportunity commission) on diversity at Wal-Mart stores, in 2007 60. 29% of total workforces are women: 29. 69% are executive/ senior level managers, 40. 36% mid level managers, 53. 45% are professionals and 85. 78% are technicians. On the next hand, minority also have a location at Wal-Mart with 30. 10% been operatives, 39. 61 laborers and helpers and 34. 18% been service employees in the year of 2007. Compare to 2006, the number of minorities working for Wal-Mart has increased from 28. 15%, 37. 73% and 32. 91%.
Wal-Mart will not only care about its employee diversity but about its supplier too. Wal-Mart suppliers are counting to have more than 2. 500 minority and women owned business suppliers.
Their aim to have a diverse supplier background has made Wal-Mart to produce in 1994 a formal supplier diversity program which is designed to expand their minority and women owned suppliers (MWBE). This made them achieve the current variety of MWBEs.
Wal-Mart mission was to boost the amount of business they are doing with minority ad -women-owned firms using their scope, scale and leverage to make companies of significant size and statute.
"At Wal-Mart and Sam's Club, our Supplier Diversity program is creating an even more diverse foundation for our business and helping us to be truly inclusive. By strengthening our relationships with minority- and women-owned companies, we have become even more highly relevant to the customers and members that people serve. " Mike Duke, Wal-Mart president and CEO
Another demographic factor which is important in Wal-Mart is employees' status. The majority of Wal-Mart employees are part-time workers. This is explained by the fact that Wal-Mart associates are mainly women (60%) either been married and with children, or students. Having a flexible working hours is very important to them, see crucial. This can describe the hourly wages decreases that Wal-Mart has an effect on it. According to a research done by Dube, Eidlin and Lester in 2007, an entry of ten Wal-Mart stores to the market cause the fall of the common hour wages by 2 percent.
Wal-Mart operates in a wide base of customers categories. Wal-Mart customers change from one to another. Experienced 11 countries other than USA, make Wal-Mart face a wide range of culture either been religious believe and low to middle income families. Targeting such customers is part of these strategies as their aim goal and objective is to provide their customers with low prices but still a good quality products.
According to a study conducted by Andrew Franklin in 2000 and an economist at University of Connecticut showed that the mostly market of Wal-Mart is the poor and working class communities. However because of the 2001 recession, fancy retailers have noticed that the number of shoppers at Wal-Mart increases including families with money of $100, 000.
In 2003, another study showed that: 23 percent of Wal-Mart customers live on income significantly less than $25, 000 a year, more than 20 percent have no bank account, half customers are proletarian personnel and 20 percent are either unemployed or elderly.
According to Horward Davidowitch, the American consumer is in a survival mode right now because of the crisis occurring. They may be in $14 trillion debt and without savings.
Been also a supermarket where high income families are able to shop their groceries, Wal-Mart should think about offering to them a variety of products which suits their specific needs. This range of products shouldn't be as low prices as the goods currently offered. However this will not only concerned prices but qualities too.
High income families have more interest towards healthy products whereas the original company target is more toward quantity and price. Therefore Wal-Mart must consider changing their strategies and providing them with the right products to be able to meet their demand and fulfill their desire.
To sum up, Wal-Mart is taking diversity as a main factor for their success. They are trying to implementing the external environmental and culture of diverse country been USA or other countries where they are in commission at. As result, Wal-Mart is represented by 60. 29% been women in the whole workforce stores. Those workforces are mainly serving poor to mid class income families.
However, besides having positive image concerning ethnicity and diversity of both employees and suppliers, I urge to Wal-Mart to consider working more on their relationship with employees most impotently the one related to labour rights. As seen above, Wal-Mart is Anti-union Corporation. That is seen as a restriction to human and labour rights which really is a basic need to every employee.
Been unionize, would give employees the feeling to be looked after and been engaged at work and having somebody who can be involved by their matters. They need to take into considerations the fact that almost all of employees are women this means families tasks what concerns mainly children, therefore flexible hours rather than been kept over their work hours and shifts.
I recommend to Wal-Mart to improve its image and brand and how it is perceived too. Since, they are accused of discrimination against ladies in terms of salaries and pay and promotions. They are facing the greatest civil rights class-action suit in the history: Dukes Vs Wal-Mart. Diversity and discrimination, doesn't not stop only at employing women and minorities but how is there spread over the organization and how it is treated by their employers.