Strategic Business Analysis

Walmart Case Study

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 KEY FACTS

Name Wal-Mart Inc.

Founded July 02, 1962

Logo

Industries Served Retail

Geographic Areas Served World Wide (11,484 stores in 27 countries)

Headquarters Bentonville, Arkansas, U.S.

Brief History of Walmart
 Brief History of Walmart
• On July 2, 1962, Sam Walton opens the first Walmart store in Rogers,
Arkansas. In 1969, the company officially incorporates as Wal-Mart
Stores, Inc. The year 1960s the is the retail revolution when Sam
Walton’s strategy is built on an unshakable foundation: the lowest
prices anytime, anywhere.

• In the 1970s, a decade of incredible growth, "Mr. Sam" begins to take

Walmart national, providing his vision's widespread appeal. Where
Walmart is listed on the New York Stock Exchange (WMT). With 51
stores, Walmart records sales of $78 million.

• In the 1980s, the first Sam's Club opens, serving small businesses and
individuals, and the first Walmart Supercenter opens, combining a
supermarket with general merchandise.
• By 1990, Walmart is the nation's No. 1 retailer. As the Walmart Supercenter

redefines convenience and one-stop shopping, Everyday Low Prices goes

international.

• By the year 2000s, Walmart enters the new millennium dedicated to offering

customers a seamless shopping experience, whether they are online, in a store or on

a mobile device.

• In the 2010s, they focused more on people-led and tech-empowered. Walmart

commits to serving customers in a changing retail environment, leveraging both

associates and technology to make it happen. By the year 2016, Walmart opens its

Culinary & Innovation Center in Bentonville to develop and test new and innovative

products.
• By 2018, the company changes its legal name from Wal-Mart Stores, Inc. to Walmart

Inc. Walmart announces plans to increase its starting wage rate for all U.S. hourly

associates to $11, expand maternity and parental leave benefits and provide a one-time

cash bonus for eligible associates. More than 1 million associates are expected to benefit

from the combined wage and benefit changes.

• By 2019, John Furner named President and CEO of Walmart U.S. Walmart continues to

pave the way in retail innovation, benefiting customers and associates alike by

leveraging new technology and learning from its expanding family of brands. 2019, With

fiscal year 2019 revenue of $514.4 billion, Walmart employs over 2.2 million associates

worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and

employment opportunity.
MILESTONES
 MILESTONES
Wal-Mart Stores Inc. (NYSE: WMT), struggling with revenue growth
and its image as a company that pays its employees as little as possible,
is still one of the great success stories in American corporate history.

1990
Walmart becomes the top retailer in the U.S., and earns over $26 billion in product
sales.

1994
Walmart expands into Canada with the purchase of 122 Woolco stores.

1996
Walmart opens its first stores in China.
2000: Walmart.com is founded, allowing U.S. customers to shop online. Walmart
employs more than 1.1 million associates in 3,989 stores and clubs worldwide.

2002: For the first time, Walmart tops the Fortune 500 ranking of America's largest
companies. Walmart enters the Japanese market through its investment in Seiyu.

2011: Walmart expands its business into South Africa by acquiring 51% of
Massmart Holdings Limited. With the acquisition of Massmart in South Africa,
Walmart surpasses 10,000 retail units around the world.

2018: A company name change stands out in 2018, as Wal-Mart Stores, Inc. gives
way to Walmart Inc.

2019: With fiscal year 2019 revenue of $514.4 billion, Walmart employs over 2.2
million associates worldwide. Walmart continues to be a leader in sustainability,
corporate philanthropy and employment opportunity.
SWOT
Matrix
 SWOT Weaknesses
Matrix 1.
2.
Profitability performance
Dependence on marketing
penetration
3. Physical stores’ unstable
position in future
STRENGTH 4. Inconsistent proportion of Threats
1. Competitive Threat from
1. Largest retailer in the segments’ sizes
Other Retail & E-
world. commerce brands
2. International presence
Opportunity 2. Harassment and
1. Quick adaptation of the changes
3. The solid growth Violence (Ethical Issues)
given by the pandemic
trend in revenue 3. Walmart’s failure in
2. Walmart’s Subscriptions
4. Various retail entering foreign market
Services
channels/formats 4. Lawsuits leading to risk
3. New Walmart Health Brings
of investing in Walmart
5. Ecommerce growth Affordable and Accessible
6. Pricing strategy and Healthcare
bargaining power 4. Acquisitions of Flipkart
5. Entering Popular Fashion
Resale Market
6. Walmart’s partnership with
Tribeca Enterprises
COMPARATIVE ANALYSIS
COMPARATIVE
ANALYSIS
Online Retail
Competitors’ Sales Graph

Traditional Retail
Competitors’ Sales Graph

Competitors
Financial Statements
RECOMMENDATIONS
 RECOMMENDATIONS
This SWOT analysis shows that Wal-Mart must prioritize The
company’s weaknesses and threats and enhance its strengths to exploit
opportunities in the global retail market.

1. Developing 2. Improving on the

Physical stores Online retail sector
Features
3. Improving its HR 4. Developing
management Strategies in
standards International
(ethical issues) Segments
Implementation
(Action Plan)
 ACTION PLAN
GOALS TASKS RESPONSIBLE COMPLETIO
DEPARTMENT N DATE
1. Developing Physical • Introducing new store sections (Premium Development and
Section) Research Team End of the year
store Features • Innovating for a new shopping experience
(Dash Cart Technology)

2. Improving on the • Partnership with digital brands, Apparel line

and Celebrity brands
Online retail sector • Redesigning the website to improve Shopper
IT Department Within 6 months
experience
• Improvements for mobile application
(Walmart Pay App)

3. Improving its HR • Create Policies and Practices

• Hire Right
management • Put Controls in Place HR Management
standards Within 4 months
• Welcome an Ethics Speaker
(Ethical Issues) • Measure effectiveness of your ethics programs

4. Developing • Conducting survey to foreign countries

• Identifying the trends and competitors in each
Strategies in country
International Marketing Team End of the year
• Reducing unnecessary products and adding up
segments the in demand products
• Leave for better and adapt to earn