Walmart, Inc.

SWOT ANALYSIS

Kreston Thomas
Banner ID: 830038724

November 30, 2010

Fayetteville State University

MKTG 311- 46 | Fall 2010

HoEun Chung
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Table of Contents
Introduction...............................................................................................3

Situational Analysis.......................................................................................4

Internal Analysis..........................................................................................4

Company image........................................................................................................... 4

Organizational structure.................................................................................................. 4

Key staff.................................................................................................................... 4

Environmental Goals..................................................................................................... 5

Operational efficiency.................................................................................................... 5

Operational capacity...................................................................................................... 6

Brand awareness........................................................................................................... 6

Market share............................................................................................................... 7

Exclusive contracts....................................................................................................... 8

Patents and trade secrets................................................................................................. 8

External Analysis.........................................................................................8

Customers.................................................................................................................. 8

Competitors................................................................................................................ 9

Market Trends.............................................................................................................. 9

Social Changes............................................................................................................ 9

New technology......................................................................................................... 10

SWOT ANALYSIS......................................................................................10

Current Issues and Problems.......................................................................................... 11

Recommendations....................................................................................................... 11

References...............................................................................................13

Introduction
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Wal-Mart Stores Inc began operations in 1962 as a local discount store in Rogers, Arkansas. It is

founded by Sam Walton who successfully ran a retail store called Waltons Five and Dime, an

extension of a franchise store called Ben Franklin. After five years, Mr. Walton completed 24

stores across Arkansas with annual sales of $12.6 million. In 1968, Wal-mart expanded outside

the state to Missouri and Oklahoma. In October 31, 1969, Wal-Mart was incorporated as Wal-

Mart Stores, Inc.(walmartstores.com, 2010) The next year, the retailer consisted of 38 stores

with 1,500 employees with sales totaling $44.2 million. Wal-mart became public trading

company on NYSE with a stock split the following year at $47 per share. By 1975, sales totaled

$340.3 million and growing rapidly. The store celebrated its 25th anniversary in the 1980s,

highlighting its sales of $15.9 billion and 200,000 employees. Wal-Mart invested $24 million for

new technology of a satellite network to track inventory and sales to its corporate office in

Bentonville, Arkansas. This gave a great competitive edge as they developed its first superstore

which opened in Washington, Missouri. By late 1990s, the store expanded operations to

overseas as well as surpassed domestic competitors such as Toys R Us in toy sales. In the UK,

Wal-mart purchased ASDA retailer for $10 billion. In 2000, Wal-mart sales grew to $165 billion.

Two years later, it was listed as Americas largest corporation by the Fortune 500 list. In 2010,

Wal-mart has expanded greatly across the globe and continues to lead retailers as a price leader

and innovative retailer. It has over 4,112 stores and more than 680, associates in 14 countries

outside America. Wal-mart earned $408 billion in revenue in FY2010 which is an increase of 1%

of the previous year. Its total stores worldwide are 8,416. (Walmartstores.com, 2010)

The mission statement for Wal-mart is a simple statement to focus on consumer needs.
We save people money so they can live better
Sam Walton is quoted in saying,
If we work together, well lower the cost of living for everyonewell give the world an

opportunity to see what its like to save and have a better life.

Today, Wal-mart is the worlds largest retailer and grocery chain company by sales with 50%
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more than its 5 closest competitors, such as Target and Sears.

Situational Analysis

Internal Analysis

Wal-marts company culture includes a list of values and beliefs it establishes through its

management and employee relations. This culture includes an Open Door Policy in which

management believes open communication critical to understanding and meeting our associates

and our customers needs. Associates can trust and rely on the open door; it's one of the most

important parts of our culture. Sundown Rule is a rule that management attempts to answer

request by the close of business. Grass Roots Process is a belief that associates ideas,

suggestions and concerns matter. The 10-foot Rule is a customer service tactic that greets and

engages customers that are within 10 feet distance. Servant Leadership is a policy Wal-mart uses

to listen to their partners and associates in an attempt to create morale and teamwork. Teamwork

is a big part of their store culture as Sam Walton believes in the power of teamwork to help grow

at the pace of modern life. Wal-mart Cheer is incorporated by all associates by shouting

enthusiastically inside the store to show pride in the company. Lastly, Wal-mart reads associates

stories to carry out their beliefs and values as well.

Company image

Wal-mart aims to help customers save money to improve their purchasing power to live better.

The companys marketing efforts are to establish awareness that they are the price leaders in their

market. In recent times, the company has focus on becoming involved more in local communities

by charity and service.

Organizational structure

Wal-mart was incorporated in 1969 and is now globally present in 15 countries.
Key staff
Wal-mart consist of leaders of multiple industries and a board of Sam Waltons family members.
The following executives help operate the success of the company: (Walmart.com, 2010)
Aida M. Alvarez
Former Administrator of the U.S. Small Business
Administration and member of President Bill Clinton's
Cabinet in 1997 to 2001
Director of the Office of Federal Housing Enterprise
Oversight, the financial regulator of Fannie Mae and
Freddie Mac, from 1993 to 1997
A director for UnionBanCal Corporation
A member of the diversity advisory board for Deloitte &
Touche LLP
Aida joined the board in 2006
James W. Breyer
The Managing Partner of Accel Partners
A director of RealNetworks, Inc., Marvel Entertainment,
Inc., and several private companies
Jim joined the Board in 2001
M. Michele Burns
Chairman and CEO of Mercer Human Resource
Consulting, a subsidiary of Marsh and McLennan
Companies, Inc.
A director for Cisco Systems, Inc.
Michele joined the Board in 2003
James I. Cash, Jr.
Retired James E. Robison Professor of Business
Administration at Harvard Business School
Former Senior Associate Dean and Chairman of HBS
Publishing
A director of The Chubb Corporation, General Electric
Company and other private companies, and former
director of Microsoft Corporation.
James joined the board in 2006
Roger C. Corbett
Retired CEO and Group Managing Director of
Woolworths Limited, a retail company in Australia
A director of The Reserve Bank of Australia, Fairfax
Media Limited, and Chairman of the board of directors
ALH Group Pty Limited.
Roger joined Wal-mart's Board in 2006
Douglas N. Daft
Retired Chairman of the Board and CEO of The Coca-
Cola Company
A director of The McGraw-Hill Companies, Inc.
Doug joined Wal-mart's Board in 2005
Michael T. Duke
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Gregory B. Penner
General partner at Madrone Capital Partners, an investment
management firm
From 2002 to 2005, he served as Wal-marts Senior Vice
President and Chief Financial Officer - Japan
Former financial analyst for Goldman Sachs
A member of the board of directors of Baidu.com, Inc.
Board of directors of 99Bill Corporation
A member of the board of directors of Cuill
A member of the board of directors of Global Hyatt Corp.
Greg joined the Board in 2008
Steven S Reinemund
Dean of Business and Professor of Leadership and Strategy
at Wake Forest University
Retired Chairman and CEO of PepsiCo, Inc.
A director of Exxon Mobil Corporation, American Express
Company, and Marriott International, Inc.
Steve joined the Board in 2010
H. Lee Scott, Jr.
Chairman of the Executive Committee of the Board of
Directors of Wal-Mart Stores, Inc. and Former Chief
Executive Officer
Lee has been a member of the Board since 1999
Arne M. Sorenson
Executive vice president and chief financial officer of
Marriott International, Inc., a position he has held since
1998.
Former partner in the law firm of Latham & Watkins in
Washington, D.C.
Arne joined the Board in 2008
Jim C. Walton
Chairman of the board and CEO of Arvest Bank Group, Inc.
Chairman of the board of Community Publishers, Inc.
Jim joined the Board in 2005
S. Robson Walton
Chairman of the Board of Directors
Rob has been a member of the Board since 1978
Christopher J. Williams
Chairman and CEO of The Williams Capital Group, L.P.
Chairman and CEO of Williams Capital Management, LLC
A director of Harrah's Entertainment, Inc.
Chris has been a member of the Board since 2004
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President and Chief Executive Officer, Wal-Mart Stores, Linda S. Wolf

Inc. Former chairman of the board and CEO of Leo Burnett
Mike joined the Board in 2008 Worldwide, Inc., a division of Publicis Groupe S.A.
A trustee for investment funds advised by the Janus Capital
Group, Inc.
Linda been a member of the Board since 2005

Environmental Goals

Wal-mart currently has 3 environmental goals: (Walmart.com, 2010)

1. To be supplied 100 percent by renewable energy
2. To create zero waste
3. To sell products that sustain people and the environment

Operational efficiency

Wal-mart has a focus on growing its return on investments through development of gross margin

improvements, inventory management, and disciplined capital allocation processes. The

company has developed ways to increase labor productivity by its associates which helps to

leverage the operating expenses. Wal-mart has grew operating income faster than sales; 5.2% to

$19.5 billion. It has also achieved strong sales and gaining market share in many countries by

using innovation combined with its competitive advantages.

Operational capacity

Wal-mart is a large retailer with many stores, distribution centers, and communication

technology to effective operates at its large scale. Its supercenters average roughly 185,000

square feet as well as include grocery section. By 2010, Wal-mart had 2747 Supercenters at the

end of 2010, which is an increase of 135 stores from the previous year (most were converted

from Wal-mart discount stores). Discount Stores have a size of 108,000 square feet in size with a

variety of general merchandise while some carry limited grocer items. Wal-Mart operated 803

Discount Stores in 2009. Neighborhood Stores average around 42,000 square feet in size

including general merchandise and a full grocery section. Wal-Mart operates 158 Neighborhood
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format stores in 2010.

Brand awareness

Wal-mart has great focus on establish brands within its stores. The retail giants major
merchandise lines include house wares, consumer electronics, sporting goods, lawn and garden,
health and beauty, apparel, home fashions, paint, bedroom, hardware, automotive repair,
maintenance items, toys and games, and grocery. Their current brands are listed below:
(Wikipedia.org/walmart, 2010)
Sam's Choice, originally introduced as Sam's American Choice in 1991, is premium retail brand in food and selected
hard goods. Compared to Great Value products and to other national brands, Sam's Choice is positioned as a premium
retail brand and is offered at a price competitive with standard national brands.
Great Value was launched in 1993 and forms the second tier, or national brand equivalent ("NBE"), of Wal-mart's
grocery branding strategy.
Equate is a brand used for consumable pharmacy and health and beauty items, such as shaving cream, skin lotion, over-
the-counter medications, and pregnancy tests.
Ol' Roy is Wal-mart's store brand of dog food. Its namesake comes from Sam Walton's bird dog, and has become the
number-one selling brand of dog food in the United States, surpassing Nestle's Purina. Ol' Roy was created in 1983
Parent's Choice is the Wal-mart store brand for baby products, including food, diapers, formula, and accessories. Like
other Wal-mart store brands, its design and packaging was relaunched in 2010.
White Stag is a brand for women's clothing, footwear, and basic jewelry.
George is a brand of more formal clothing for men, women and children. It also consists of dress shoes, wallets, belts,
and neckties. It was created by the British retailer ASDA in 1990, and since Wal-mart acquired ASDA in 1999, it has
maintained and expanded it to other markets, notably the United States, Canada, and Japan. The George brand was
named after George Davies, who was its original chief designer
Faded Glory is a brand for basic men's, women's, and children's clothing and footwear. It is Wal-mart's primary clothing
brand.
Jesse James Industrial Workwear is a brand of men's work clothing, named for the motorcycle builder Jesse James.
No Boundaries, usually abbreviated as NOBO, is a line of apparel targeted at teenagers and young college students.
Simply Basic was previously a brand used for health and beauty items, but is now used primarily for women's
sleepwear.
Better Homes and Gardens is a product line with designs inspired from the popular magazine of the same name.
Canopy is a home product line that features coordinated solutions for rooms and other domestic goods. Some Canopy
products are made with organic cotton.
Hometrends products include small furniture, tableware and various home decor accessories, such as rugs and faux
plants.
Mainstays products include curtains, bedding, some small home furnishings, and various other products, including
office supplies and kitchen utensils.
your zone is a home product line that tailors toward teenagers and college students.
@ the Office is a brand used for office supplies and stationery.
Best Occasions is a brand used for party decorations and accessories, such as candles and hats.
Clear American is used for carbonated and flavored water. Was previously known as Sam's Choice Clear American.
Color Place is the brand used for paint and painting tools. Color Place paint is made by Valspar.
Douglas is the brand used for budget priced tires. Models include Xtra-Trac and Touring. Some models are made in a
Goodyear plant.
EverStart is the brand for automotive and lawn mower batteries. The brand is also used for battery related accessories,
such as jumper cables.
Fire Side Gourmet is used for pre-cooked burgers and steaks, and was previously under the Sam's Choice label.
Gold's Gym is used for athletic and exercise equipment such as weights. Named after and licensed from the chain of
fitness centers.
Holiday Time is used for Christmas items such as Christmas trees, decorations, and wrapping paper.
Kid Connection is used primarily for children's toys, but was also used for children's clothing and shoes.
Marketside is a brand of fresh foods usually found in Wal-mart's deli, produce, and bakery departments, such as salads,
soups, breads, and sandwiches.
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Ozark Trail is a brand used for outdoor equipment and footwear.

Protege is a brand consisting of luggage and travel accessories.
Special Kitty is a brand of cat food and litter.
SuperTech is Wal-mart's brand of motor oil. The brand is also used on other consumable automotive products, such as
oil filters, windshield wiper fluid, and transmission fluid.
Wal-mart Family Mobile is Wal-mart's exclusive cell phone (postpaid) service provided through the T-Mobile cellular
network.
World Table is a brand consisting of foods inspired by international cuisines, such as sauces, snacks, and frozen foods.

Former Brands
Athletic Works was a brand for athletic clothing, such as gym shorts and running shoes, and has been partially replaced
by the Gold's Gym brand. The brand was also used for sports equipment and watches. The brand was also on men's and
women's socks, and men's underwear.
Durabrand was a brand used for home electronics such as televisions and DVD players. The brand was also used on
various small kitchen appliances.
ilo was another brand of home electronics, consisting of more upscale items such as plasma televisions and digital
music players.
Metro 7 was an upscale brand of women's apparel, that was released in the fall of 2006.
Puritan was a brand for men's basic clothing including shirts, pants, undergarments, socks, ties, and some accessories.
In late 2010, the brand was phased out and replaced by Faded Glory (with undergarments) and George (with ties, shirts,
and pants

Market share

Wal-mart is dominant in many merchandising markets and quickly expanding into new ones. As

the largest retailer in America, it has surpassed its closest competitors by great lengths. The

company generates revenue from its different subsidies across the world, including:

Wal-Mart Stores 63.8% of Total Revenue

Sams Club 11.5% of Total Revenue
Wal-Mart International 24.7% of Total Revenue

Wal-Mart Inc., STOCK: WMT 53.85 0.11 (0.20%) as of November 30, 2010

Valuation Measures Income Statement

Market Cap (intraday)5: 195.64B Revenue (ttm): 419.24B
Enterprise Value (Nov 30, 2010)3: 240.56B Revenue Per Share (ttm): 112.71
Trailing P/E (ttm, intraday): 13.42 Qtrly Revenue Growth (yoy): 2.60%
Forward P/E (fye Jan 31, 2012)1: 12.18 Gross Profit (ttm): 103.56B
PEG Ratio (5 yr expected)1: 1.25 EBITDA (ttm): 33.04B
Price/Sales (ttm): 0.46 Net Income Avl to Common (ttm): 15.11B
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Price/Book (mrq): 2.97 Diluted EPS (ttm): 4.03

Enterprise Value/Revenue (ttm)3: 0.57 Qtrly Earnings Growth (yoy): 6.10%
Enterprise Value/EBITDA (ttm)3: 7.28
Balance Sheet
Financial Highlights Total Cash (mrq): 10.62B
Fiscal Year Total Cash Per Share (mrq): 2.94
Fiscal Year Ends: Jan 31 Total Debt (mrq): 56.79B
Most Recent Quarter (mrq): Oct 31-10 Total Debt/Equity (mrq): 86.68
Current Ratio (mrq): 0.87
Profitability Book Value Per Share (mrq): 18.12
Profit Margin (ttm): 3.59%
Operating Margin (ttm): 6.08% Cash Flow Statement
Operating Cash Flow (ttm): 26.07B
Management Effectiveness Levered Free Cash Flow (ttm): 12.59B
Return on Assets (ttm): 8.86%
Return on Equity (ttm): 22.69%
**Data provided by Yahoo Finance and
CapitalIQ.com.

Exclusive contracts

Wal-mart has purchased 2 million shares of Green Dot, a prepaid debit-card seller, in June 2010.

(NYTimes, 2010) This gives the retail giant a look at commercial banking as Green Dot has

managed their prepaid card business for years. Wal-mart also has contract with VUDU which

sells and rents downloadable movies and TV shows on-demand. (Kharif, 2010) This is a web

based business but looks to expand to devices where web connectivity and home entertainment

intersect, such as Netflix, Time Warner Cable, Apple, Amazon, and video gaming systems. Wal-

mart has announced in September 2010 a Family Mobile service which is a cellular phone plan

with its own branding. This was feasible via T-mobile USA networks and offers unlimited

calling plans to compete with other cell phone service providers.

Patents and trade secrets

Wal-mart has trademarked the name Wal-mart (excluding dash) and has requested all financial

reports use the original hyphenated version.

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External Analysis

Customers

Wal-Mart's main customer base has an average annual income of $35,000. The company appeals

to a mass market as it offers a variety of merchandise at a very affordable cost in comparison to

other retailers.

Competitors

Target is Wal-Mart's most direct competitor with similar merchandising formats and

supercenters. Targets advantage over Wal-Mart is its customer base which averages around

$50,000 per year. This is significantly higher than Wal-mart. Kmart is the third discount retailer,

but has seen steadily declining sales since 2000. It has lost major market share in its attempt to

restructure and compete with a large-scale retailers. , Wal-Mart competes with other specialized

retailers, such as Safeway in groceries, Best Buy in consumer electronics, and department stores

such as Macys.

Sam's Club directly competes with Costco Wholesale and BJ's Wholesale Club in the warehouse

club sector. Costco out performs Sams Club in sales.

Internationally, Wal-Mart's competitors are Britain's Tesco, France's Carrefour, and Germany's

Metro. These retailers are located in similar markets as Wal-mart, such as China, the UK, and

Japan.

Market Trends

Wal-mart remains focused on staying the price leader, yet focused on balancing risk profile

between mature markets like the U.K. and emerging markets like Brazil and China.

Wal-Mart stores earned 51% of their revenue from grocery sales in 2010, with sales of

entertainment, electronics, and toys a distant second at 13% of Wal-Mart stores' revenue. The
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company plans to open 145-160 new stores in 2011. Wal-Mart's 4,304 domestic namesake stores

accounted for over $300 billion of the company's revenue during fiscal year 2010 which was a

0.9% increase from sales in 2009. This moderate growth differs from the 0.7% decrease in

comparable store sales the store suffered in 2010. Also, as of 2008, over 80 percent of Wal-Mart's

60,000 global suppliers are based in China.

Social Changes

Wal-mart is rolling out Operation Main Street: Money Management, a program that gives

Americans including those underserved customers not using traditional checking accounts

affordable access to essential money services.

Working collaboratively with the American Red Cross and The Salvation Army, Wal-mart and its

Foundation are able to provide life-sustaining items and much needed peace of mind to those in

need of assistance. The company supports disaster relief efforts in communities around the

world. Wal-mart has recently helped disasters such as, Chile Earthquake and Tsunami Relief,

Haiti Earthquake Relief, and Hurricane Katrina. The Wal-mart Foundation offers three

scholarship programs and also administers the Walton Family Foundation Scholarship on behalf

of the Walton Family Foundation. Wal-mart also supports veterans in the local community. Wal-

mart stores, Sams Clubs and distribution centers take the lead on many projects designed

specifically for their neighborhoods ranging from adopting families whose loved ones are

deployed to honoring local heroes on Walls of Honor inside Wal-mart stores and Sams Clubs in

the weeks leading up to Veterans Day. Also, the company has added Fair Trade Certified coffee

and locally grown fresh produce inside their stores.

New technology

Wal-mart has invested in many innovative technologies to improve its continual success. They
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have adopted satellite technology to help supply chain management and inventory processes. The

effectively used the UPC to quickly update its database and logistically distribute goods. The

RFID technology of early 2000s has been updated with sophisticated electronic ID tags to track

goods.(Bustillo, 2010) Inventory tracking devices can quickly scan goods to determine missing

items and low levels. This will be implemented in over 3,750 stores in the United States.

SWOT ANALYSIS

Strengths Opportunities

Largest retailer in the world by sales Online retail sales

50% higher sales than closest Internationally presence and expansion
competitors Brand expansion
Supplier connections Develop customer shopping
Large purchasing power experience/satisfaction
Price Leader Green Initiatives
Operational effectiveness Acquisitions of successful startups in
Variety merchandise provider competitive markets
Successful in economic hardships Digital Market
Commercial Banking

Weaknesses Threats

o Monopolistic Business o Reliance on Chinese imports

o Management of employees
o No detailed mission statement/core
competencies
o Low wages and benefits
o Reaction to changes in market
o Different stores in different locations
o Low quality products/ Recalls
o Law suits
o Global economic conditions
o Targeted by small biz as leading retailer
o Opposition Groups (Community,
Environmental, Political, Unions)

Current Issues and Problems

Wal-mart has become vulnerable as the price leader and incorporating low quality products

within its stores. Competition, notably Target, has increase the quality of products and aims to
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attract a higher income level, customer.(WikiInvest.com, 2010) This will allow Target to gain

sales with less operating expenses. Wal-mart has survived the economic downturn in modern

times, but may face more challenges as the economy raises consumers purchasing power.

Luxury goods will be more demanded and the retail giant must quickly react at its large scale

operations. Consumers may not trust their products to be high quality and may change the image

of Wal-marts brand.

Another issue is in international markets where economies are changing rapidly. In example,

China is imposing more changes to its national economic stance in the world. The country is

attempting to raise the value of the Yuan, which in return means Wal-mart will pay more for

Chinese merchandise that account for nearly 80% of its suppliers.

Communities are hesitating to welcome Wal-Mart into some communities. Although economic

downtown has cause many local government to suffer high unemployment, many have fully

welcomed Wal-Mart. In a 2006 report, Chicagos west side store opening was analyzed and

determined to have a negative impact on local small business owners.(Farmer, 2010) Wal-Mart

has called the test flawed. The company adds there were 22 new business openings

surrounding the retail giant and charitable donations were given to local non-profits. However,

more and more communities look into Wal-Marts impact on their community before offering tax

breaks and incentives to drive local employment.

Recommendations

With many great opportunity and strengths, Wal-mart may need to focus attention on potential

threats and weakness. There are a few recommendations to help the company expand, reduce

liability, maintain reputation, and decrease social backlash.

Wal-mart should improve its brand image as it operates low-quality products at a much

affordable price than its competitors. The company should inherit more brands that are
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established in quality rather than grow its own brands through acquisitions. Profit maximization

is hurting the retail giants image, yet improving profits year after year. The company has made a

great leap into electronics sector and must compete with consumer electronic business leader,

BestBuy. Wal-Mart plans to launch the iPad for sale the 4th quarter of 2010. (Bustillo, 2010) This

should help their image in quality products, since televisions are majority low quality to target

their audience. The iPad should add well to their video gaming sales to increase a brand base of

quality products.

The company also faces backlash through community groups, unions, lawsuits from employees,

and environmental groups. Wal-mart should participate in more local community events by

sponsoring reputable non-profits in each of its locations. By connecting to local schools, the

company can regain trust in parents, the next generation of shoppers, and community activist that

may have an unfavorable review of them.

Wal-mart has been accused of hurting small businesses and disrupting the markets in many

small town communities. This lowers purchasing power of the community, although as the price

leader approach appears to save customers money to live better. Small businesses can employ

more workers and in return they will shop at Wal-mart with higher purchasing power. Wal-mart

should help empower small business, not to compete against them, but to provide wholesale

options and support to help them succeed. Sams club is a great place to shop, but many small

business owners avoid the membership and travel to the warehouse. With proper distribution to

other small business as a supplier, Wal-mart can help the small businesses to grow and still

generate revenue. The disadvantage would be large stores that would decrease sales, but increase

purchasing power of local communities. It must find a way to comprehend the microeconomic

impacts that would offset healthy, local, economic environments. Currently, New York is

debating the negative disadvantages of the retail giants opening of new stores.(McCormack
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2010) It has become more a paranoia when inviting Wal-Mart into local communities. The

advantage of taxing the retailer and creating jobs has not fully proved to empower small business

owners or improve quality of living as mentioned in mission statement. Wal-Mart has attempted

to move stores near the Washington D.C. area, appearing to influence legislators or target an

urban market.(Debonis, 2010) This may help or hurt the company in its close proximity to

lawmakers and advocacy groups. Management should consider the impact of protests or the D.C.

stores being a close example of the retailer that is targeted by media via politicians.

Lastly, Wal-mart should focus internationally on establish stores to compete in Europe. The

company has not successfully competed against European superstore, Tesco.(Harjani, 2010) It

should find strategies to compete, such as analyzing their customers and providing better

products and service. This could be maintained by analyzing their competitors such as Target in

the United States. Also, China and India hold great potential in providing new market expansion

to increase sales. Wal-mart should establish political connections and find acquisition to expand

its brand or operations. Currently, Wal-Mart is considering purchasing South Africas MassMart

to expand its operations.(Steward, 2010) It will need to win local support of political leaders

which Wal-mart has not successfully established foreign or domestically. The retailer will need

more legal representation and strategy to guide its expansion in global markets.
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