They have the same suppliers, which mean that what they offer to the customers is uniquely similar. In the United States, there are numerous retailers which offer the same products to the American customers. The same case has been witnessed in other parts of the world.Īccording to Massengill (2013), the retail industry is one of the most competitive industries in the world because of the number of players. In the United States, which is the main market for Wal-Mart, the retail industry has experienced rapid growth over the past five decades. The industry plays a very important role in breaking bulk and selling products in the quantities needed by clients. The retail industry has experienced massive growth over the years because of its relevance to the global society. It is important to critically look at this industry to determine how Walmart fairs on and some of the external issues it should be conscious of to remain competitive in the market. However, it is delicate, highly competitive, and with small profits that must be properly managed to achieve the desired success. The retail market is considered one of the most lucrative markets in the world. Inasmuch as the firm’s long-term debt is still high, Wal-Mart’s total assets is also increasing. The graph above shows that the financial position of this firm has been strengthening over the years. The graph indicates that this firm has a bright future in the market if it continues with the growth. From 2013, the growth continued but at a slower rate compared to the previous years. Figure 1: Operating Results.Īs shown in the above graph, there was a sharp increase in sales, operating income, and total revenues from 2011 to 2013. The above data can be presented in graphical form for the purpose of understanding the trend. There is also an indication that there is a positive trend in the financial position of this firm. The table shows progress made by Walmart in terms of sales, revenue and income over the past five years. The table below is a summary of the firm’s financial position over the last five years. Its financial position over the last three years has also considerably improved. Over the last five years, the firm has experienced impressive growth in sales and revenue. This company’s success in the global market is partly credited to its superior ways of managing its finances. Sound financial acquisition, planning, and utilization is very critical, especially for a firm that operates in a highly competitive market such as Wal-Mart. A stable firm must have effective ways of managing its financial resources to promote growth. The financial resources of a firm define how stable it is in the market. The firm has made an emphatic entry into the e-commerce market not only in the United States’ market but also in Europe and other parts of the world. Greg Penner is the firm’s current chairman while Doug McMillon is the chief executive officer. It employs about 2.2 million people in various countries. Since then, the firm has experienced massive growth to become one of the largest firms in the world in terms of sales and number of employees.Ĭurrently, it is estimated that Walmart has over 11,527 stores across 28 countries in the Americas, Europe, Asia, and Africa. The firm opened its first discounted store in 1962 in Arkansas and was incorporated in 1969. Although the war was not fought in the United States’ soil, the country took part in it and the economy felt the impact.Ĭoming up with a retail store that sells discounted products was, therefore, a wise decision because the shoppers were struggling with reduced purchasing power. This strategy proved very effective because the Second World War was just coming to an end. Walton was interested in starting a discounted shop where he could sell high volumes at high prices. Walmart is a leading multinational retail store which was established by Sam Walton in 1945 after purchasing Ben Franklin Stores. It will also strengthen the firm’s brand in the online market. The new strategy will promote efficiency in the firm and improve customer satisfaction. The objective of revising its online marketing strategy will shorten the time it takes to deliver products to customers once they make their purchase. Currently, the firm faces stiff competition in the market, especially in the online retail market. This giant American retailer has registered impressive performance in the American markets over the years since its inception over 50 years ago. Walmart is the largest retail store in the world with over 11,527 stores across 28 countries.
0 Comments
Leave a Reply. |