Sebastian Roman
BUSI 4349
July 20
th
2016
Wal-Mart in Africa Analysis
Mission/ Vision Analysis
Wal-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 and
minds 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 Analysis
Currently Wal-Mart is an internationally recognized supermarket situated in the United State, but
located 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 Analysis
Currently 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. The
competition 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 retailers
any 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
