CASE STUDY: Walmart's Strategy Implementation

Walmart, founded in 1962, is a multinational retail corporation that operates a chain of discount department stores and grocery stores. Walmart is one of the world's largest retailers, with more than 11,000 stores and clubs in 27 countries.

Strategic Analysis

SWOT Analysis:

Strengths: 1. Strong brand image and reputation 2. Wide product assortment and distribution network 3. Economies of scale and cost leadership 4. Strong financial performance

Weaknesses: 1. Limited e-commerce presence compared to competitors 2. Low employee satisfaction and negative public image 3. Dependence on China for sourcing products 4. Limited product differentiation

Opportunities: 1. Expansion into international markets 2. Increased focus on e-commerce and digital transformation 3. Diversification into new product categories 4. Growing demand for sustainable products

Threats: 1. Intense competition from online retailers such as Amazon 2. Economic downturns and fluctuations in consumer spending 3. Negative public perception and legal issues 4. Trade restrictions and political uncertainties

Porter's Five Forces Analysis:

The threat of New Entrants: Low The retail industry requires significant investment in infrastructure, distribution, and marketing, which makes it difficult for new entrants to compete with established players.

Bargaining Power of Suppliers: Medium Walmart's large scale and bargaining power allow it to negotiate favorable terms with suppliers, but the dependence on China for sourcing products presents a risk.

Bargaining Power of Buyers: High Buyers have a significant amount of bargaining power due to the wide variety of retail options available.

Threat of Substitutes: Medium Online retailers such as Amazon and other discount stores are substitutes for Walmart's physical stores.

Competitive Rivalry: High Walmart faces intense competition from online retailers such as Amazon and other physical retailers such as Target, Costco, and Kroger.

QUESTION 1. Based on the analysis, which strategic options Walmart will choose? Explain your answer in 500 words.