Wal-Mart_Business_Plain

Wal-Mart Marketing Plan Part 1 Name: March 10, 2010 Wal-Mart- Part 1 3/10/10 Company Description Wal-Mart stores is an overpowering retail company that has gained much success for over 40 years now. Bigger than most companies around the world, Wal-Mart is the world’s number one retailer with more than 7,870 stores. With more than 1.5 million employees and about 55% of its stores in the U.S, it is still the number one retailer in Canada and Mexico as well. Founder Sam Walton’s heirs, own approximately 40% of Wal-Mart. Mission and Goals Wal-Mart’s mission is, “Our mission is to enhance and integrate our supplier diversity programs into all of our procurement practices and to be an advocate for minority- and women-owned businesses." 'To give ordinary folk the chance to buy the same thing as rich people'. Since Wal-Mart is a big environmental company, most of its goals are towards being efficient. Such as of February 25, 2010, Wal-Mart announced their goal to eliminate 20 million metric tons of greenhouse gas from its global supply chain by the end of 2015. Another goal is to be supplied by 100% renewable energy. Wal-Mart also is also trying to create zero waste and sell products that sustain people and the environment. Core Competencies Wal-Mart’s main core competency is focusing on making its prices lower. Another core competency would be lowering its operating costs. The core competency in this case is resulting from the company's ability to produce large sales volume, allowing the company to stay profitable with low profit margin. Wal-Mart’s importance is on its image of everyday low prices and high quality goods when marketing. Wal-Mart uses many different channels when marketing itself. It uses television, radio, magazines, weekly newspapers and many more feeds, and because they can sell their products for such a low price, it leaves them with a very high-income rate. Situation Analysis Strengths- Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. It has grown significantly over recent years, and has reached global expansion. Weaknesses- Even though Wal-Mart is the largest retailer in the world and has control of its empire, it could leave it weak in some areas due to the huge span of control. Although the company is global, it has an attendance in relatively few countries Worldwide. Opportunities- To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region. The stores are currently only trade in a relatively small number of countries. Therefore there are many opportunities for future business in increasing consumer markets, such as China and India. Opportunities exist for Wal-Mart to continue with its current strategy of large, super centers, which they are starting to add grocery stores along with the retail unit of Wal-Mart. Threats- Being the number one retailer means that you are the target of competition, locally and globally. Wal-Mart faces with large-scale competition everyday. Being a global retailer means that Wal-Mart is exposed to political troubles in the countries that they operate in. Competitors in the Market Wal-Mart’s main source of competition comes from department stores like Target and Kmart. Also in Canada and Mexico stores such as, Zellers, The Real Canadian Super Store, Commercial Mexicana, and Sorianna. The two national-level competitors that Wal-Mart has are Target and Kmart. Both companies are national sell there products at low prices leaving Wal-Mart with some stiff competition. Since Wal-Mart’s main core competency is selling their products at a low price, they have many business on their tail.