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Submitted by blagbag on November 29, 2005
Category: Business
Words: 3246 | Pages: 13
Views: 562
Popularity Rank: 11,121
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Wal-Mart Stores, Inc – The Challenges of being Competitive Internationally
Brief Overview of the Case
The goal of the following analysis is to examine Wal-Mart Stores, Inc. and its quest to dominate international markets. Domestically, Wal-Mart has proven success throughout the United States and Canada. Wal-Mart is the pinnacle retail store in America. As of March 2004 Wal-Mart. topped the list of “The 2004 Fortune 500” with revenues of $258,681 M, profits $9,054M (2004 Fortune 500). Internationally; however, they seem to have several challenges that need to be addressed if Wal-Mart wants to be competitive. Even though Wal-Mart has what seems to be a flawless business model, there is still a major problem with making profits in potential international markets.
In order to analyze the industry surrounding Wal-Mart, I will address Porter’s 5 Forces Model. I will continue to analyze Wal-Mart’s business by describing the core values, key resources and capabilities (value-chain, tangible and intangible resources) including outsourcing. I will also identify Wal-Mart’s strengths and weaknesses and propose several solutions to the challenges that face Wal-Mart. After complete and thorough analysis, I will finally propose my own solution that will invite projected profits into the foreign markets.
Brief Overview of the Business
Wal-Mart Stores, Inc. is both a domestic enterprise, as well as a national discount retailer. They operate internationally in Canada, Mexico, Argentina, Brazil, Germany, South Korea, United Kingdom, and Puerto Rico including joint ventures in China. Wal-Mart operates on an "Every Day Low Price" philosophy because they are able to maintain their low price structure through complete expense control. With this philosophy they have proven to be extremely profitable domestically.
Industry Analysis
Being in the retail industry, Wal-Mart can choose from many suppliers that...
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