Walmart Analysis: A Comprehensive Guide for Business Students

Analyzing a company is a necessary skill for any business student in today’s business world. Walmart is one of the most well-known corporations in the world. In this comprehensive guide, we will examine Walmart’s history, vision, mission, and core values, as well as its products and services. In addition, we will investigate Walmart’s industry and market position, as well as their key competitors.

Walmart is a multinational retail corporation based in the United States that operates a chain of discount department stores and grocery stores. Sam Walton founded the company in 1962, and it has since grown to become the world’s largest retailer, with over 11,000 stores in 27 countries. Walmart employs over 2.3 million associates worldwide and expects to generate $559.2 billion in revenue in 2020.
Understanding company analysis is critical to any business’s success. It enables business students to identify a company’s strengths and weaknesses, as well as market opportunities and threats. This analysis offers useful insights that can assist businesses in making informed decisions and improving their strategies.

Company Profile

Company History

Walmart was founded by Sam Walton in 1962 in Bentonville, Arkansas. The first Walmart store was a discount department store that offered a wide range of products at low prices. The company quickly grew and expanded to other states in the US, and eventually to other countries around the world.

Vision, Mission, and Core Values

Walmart’s vision is to “be the best retailer in the hearts and minds of consumers and employees.” Their mission is to “save people money so they can live better.” These two statements are closely tied together, as Walmart believes that by offering low prices, they can help people live better lives.

Walmart’s core values include respect for the individual, service to customers, striving for excellence, and acting with integrity. These values guide the company’s decisions and actions, and are an important part of the Walmart culture.

Products and Services

Walmart offers a wide range of products and services, including groceries, clothing, electronics, home goods, and more. The company is known for its low prices and large selection of products. Walmart also offers services such as financial services, pharmacy, and photo printing.

Industry and Market Position

Walmart operates in the retail industry, which is highly competitive. The company’s main competitors include Amazon, Target, and Costco. Walmart has a strong market position, with a large market share in the US and other countries around the world. The company is known for its low prices, which has helped it attract a large customer base. Walmart has also invested heavily in e-commerce in recent years, in an effort to compete with Amazon.

Key Competitors

Amazon is Walmart’s biggest competitor, with a market capitalization that exceeds Walmart’s. Amazon is an e-commerce giant that offers a wide range of products and services, including groceries, electronics, and more. The company is known for its fast and convenient delivery, which has helped it attract a large customer base.

Target is another major competitor of Walmart. Target operates a chain of discount department stores and offers a range of products, including groceries, clothing, and home goods. The company has a strong focus on design and has partnerships with designers to create exclusive products.

Costco is a membership-based warehouse club that offers a wide range of products, including groceries, electronics, and more. The company is known for its low prices and bulk purchasing options. Costco has a strong customer base and offers a unique shopping experience that includes free samples and a food court. .

SWOT Analysis on Walmart

A SWOT analysis is a strategic planning tool used to identify a company’s strengths, weaknesses, opportunities, and threats. Let’s take a closer look at Walmart’s SWOT analysis.

Strengths

– Large market share: Walmart is the largest retailer in the world, with over 11,000 stores in 27 countries. The company has a strong market position and a large customer base.

– Low prices: Walmart is known for its low prices, which has helped it attract a large customer base. The company has a strong focus on cost optimization, which allows it to offer products at lower prices than its competitors.

– Diverse product range: Walmart offers a wide range of products and services, including groceries, clothing, electronics, home goods, and more. This diverse product range allows the company to appeal to a broad customer base.

– Strong e-commerce presence: Walmart has invested heavily in e-commerce in recent years, in an effort to compete with Amazon. The company has a strong online presence and offers fast and convenient delivery options.

Weaknesses

– Labor issues: Walmart has faced criticism in the past for its treatment of employees. The company has been accused of paying low wages and providing poor working conditions.

– Negative public perception: Walmart has also faced criticism for its impact on local communities and the environment. The company has been accused of driving small businesses out of business and contributing to environmental degradation.

– Dependence on suppliers: Walmart relies heavily on its suppliers to provide products at low prices. This dependence on suppliers can make the company vulnerable to supply chain disruptions and price increases.

Opportunities

– International expansion: Walmart has already expanded to 27 countries, but there is still room for further international expansion. The company could explore opportunities in emerging markets, where there is potential for growth.

– E-commerce growth: E-commerce is expected to continue growing in the coming years, and Walmart is well-positioned to take advantage of this trend. The company could further invest in its e-commerce capabilities to capture a larger share of the online retail market.

– Private label expansion: Walmart has a strong private label program, which allows the company to offer exclusive products at lower prices. The company could further expand its private label offerings to attract more customers.

Threats

– Competition: Walmart faces intense competition from other retailers, including Amazon, Target, and Costco. These competitors are also investing heavily in e-commerce and could potentially capture market share from Walmart.

– Economic downturns: Walmart’s low prices make it attractive to consumers during economic downturns, but the company could suffer if the economy takes a downturn and consumers cut back on spending.

– Changing consumer preferences: Consumer preferences are constantly changing, and Walmart could be vulnerable if it fails to adapt to these changes. For example, if consumers become more interested in sustainable products, Walmart could face challenges if it fails to offer sustainable options.

Walmart has many strengths, including its large market share, low prices, diverse product range, and strong e-commerce presence. However, the company also faces weaknesses, such as labor issues and negative public perception. There are many opportunities for Walmart to continue growing, including international expansion, e-commerce growth, and private label expansion. However, the company also faces threats, such as intense competition, economic downturns, and changing consumer preferences. A comprehensive understanding of these factors is crucial for any business student analyzing Walmart.

Noteworthy research papers on Walmart

Over the years, many research papers have been published on Walmart, covering a wide range of topics such as pricing strategy, supply chain management, and corporate social responsibility. Here are a few noteworthy research papers on Walmart:

– “The Walmart Effect: The Rise of a Retailing Colossus” by Charles Fishman – This book provides a comprehensive analysis of Walmart’s business model and its impact on the retail industry.

– “The Walmartization of America” by John Brinkley – This paper discusses the impact of Walmart on the US economy and its role in shaping consumer culture.

– “Walmart’s Sustainability Strategy” by Andrea Moffat and Brian Tomlinson – This paper analyzes Walmart’s sustainability strategy and the impact it has had on the company’s operations and reputation.

– “Walmart and the Geography of Grocery Retailing” by Art Carden and Charles Courtemanche – This paper examines the impact of Walmart on the grocery retailing industry and how the company’s entry into new markets affects local competitors.

Essay Titles on Walmart

If you’re looking for essay topics related to Walmart, here are a few ideas:

1. Walmart’s Impact on Small Businesses: A Critical Analysis

2. The Walmart Effect: How Walmart is Changing the Retail Landscape

3. Walmart’s Labor Practices: An Ethical Dilemma

4. The Role of Technology in Walmart’s Success

5. Walmart’s Sustainability Strategy: Is it Effective?

6. The Future of Walmart: Challenges and Opportunities

7. Walmart’s International Expansion: A Case Study

8. Walmart’s Supply Chain Management: Lessons Learned

9. The Walmart Brand: Building a Global Retail Empire

10. Walmart’s E-commerce Strategy: A Disruptive Force in Online Retailing

Research Topics on Walmart

If you’re interested in conducting research on Walmart, here are a few potential research topics to consider:

1. The Impact of Walmart on Local Communities: A Case Study

2. Walmart’s Pricing Strategy: A Comparative Analysis

3. Walmart’s Marketing Strategy: An Examination of the “Everyday Low Prices” Campaign

4. Walmart’s Corporate Social Responsibility: A Critical Analysis

5. Walmart’s International Expansion: Opportunities and Challenges

6. Walmart’s Supply Chain Management: Best Practices and Lessons Learned

7. Walmart’s Customer Service Strategy: An Evaluation of the “Service with a Smile” Approach

8. Walmart’s Diversity and Inclusion Initiatives: A Case Study

9. Walmart’s E-commerce Strategy: A Comparative Analysis with Amazon

10. Walmart’s Impact on the Retail Industry: A Historical Perspective

Frequently Asked Questions on Walmart

Here are a few common questions and answers about Walmart:

1. What is Walmart’s mission statement?

– Walmart’s mission statement is “to save people money so they can live better.

2. How many stores does Walmart have?

– Walmart has over 11,000 stores in 27 countries.

3. What are Walmart’s core values?

– Walmart’s core values include respect for the individual, service to customers, striving for excellence, and acting with integrity.

4. Does Walmart offer e-commerce services?

– Yes, Walmart offers e-commerce services through its website and mobile app.

5. What are Walmart’s main competitors?

– Walmart’s main competitors include Amazon, Target, and Costco.

6. Does Walmart have a sustainability strategy?

– Yes, Walmart has a sustainability strategy that includes goals to reduce greenhouse gas emissions, increase the use of renewable energy, and reduce waste.

7. What is Walmart’s approach to employee training and development?

– Walmart offers a range of training and development programs for its employees, including leadership development programs, on-the-job training, and online training courses.

Conclusion

To summarize, Walmart is one of the world’s largest and most successful retailers. The company’s strengths include a large market share, low prices, a diverse product line, and a strong online presence. However, Walmart faces a number of challenges, including a negative public perception and fierce competition from other retailers.
Analyzing Walmart can give business students valuable insights into the retail industry and the strategies that companies use to succeed. Investigating Walmart can also be a great way to learn about topics like pricing strategy, supply chain management, and corporate social responsibility.

Further Reading

If you’re interested in learning more about Walmart, here are a few recommended books, articles, and case studies:

– “The Walmart Effect: How the World’s Most Powerful Company Really Works–and How It’s Transforming the American Economy” by Charles Fishman

– “Sam Walton: Made in America” by Sam Walton and John Huey

– “The Wal-Mart Way: The Inside Story of the Success of the World’s Largest Company” by Don Soderquist

– “Walmart’s Sustainability Strategy” by Andrea Moffat and Brian Tomlinson

– “Walmart and the Geography of Grocery Retailing” by Art Carden and Charles Courtemanche