100%(10)10 out of 10 people found this document helpful
This preview shows page 1 - 3 out of 9 pages.
Sebastian RomanBUSI 4349July 20th2016Wal-Mart in Africa AnalysisMission/ Vision AnalysisWal-Mart’s mission statement focuses on its customers, which consists of saving people money in order for them to live better. By using strategies to maintain low prices, Wal-Mart has been able to fulfill its mission and managed to explain its vision to be the best retailer in the hearts andminds of consumers and employees. It is a brand that is recognized globally and been able to expand swiftly, however, its mission has seen criticism due to the low wages it pays its employees, despite its success. The company’s mission and vision are factors in what the business uses to create its business strategies.External AnalysisCurrently Wal-Mart is an internationally recognized supermarket situated in the United State, butlocated worldwide. Wal-Mart’s target demographics are middle-income families and shoppers interested in low prices, however current economic situations have changed that customer base. Additionally, limited growth opportunities in the United States, eventually lead to its international expansion and after the 2008 recession much more were put on expanding internationally. Although it has seen success in markets such as Mexico, it has failed in Germany and South Korea. Corrupt governments and political instability are current barriers that may prevent a successful market in Africa, but there are countries that are currently seeing growth and
stability within their government, which would allow for Wal-Mart to succeed in such countries. Furthermore, by purchasing Massmart, which is the second biggest retailer in South Africa, Wal-Mart would essentially be able to monopolize that market. In return, there is the possibility that Wal-Mart can succeed due to it’s low cost, but must adapt it’s business model to understand the local market and make sure it does not affect locals negatively. Industrial AnalysisCurrently Wal-Mart competes in retail categorized industries. The company currently competes against several other companies such as Kmart, Target, and Costco to name a few in the U.S. Thecompetition between these companies focuses on maintaining low costs for consumers, as well as the large diversity of products, store size, and locations. Wal-Mart is the largest retailer in the US, but after the financial crisis of 2008 it began to put a lot more emphasis on its international presence. Compared to its competitors, Wal-Mart uses a strategy where it does not allow retailersany control over its merchandise, furthermore it has been adapting to technologies to manage its inventory and products, by being one of the first companies to use barcode technology it was able to become the leader in the US market. Wal-Mart’s global expansion has been successful in