Wal-Mart Stores, Inc ? The Challenges of being Competitive Internationally
Brief Overview of the Case
The goal of the following analysis is to examine Wal-Mart Stores, Inc. and its quest to dominate international markets. Domestically, Wal-Mart has proven success throughout the United States and Canada. Wal-Mart is the pinnacle retail store in America. As of March 2004 Wal-Mart. topped the list of "The 2004 Fortune 500" with revenues of $258,681 M, profits $9,054M (2004 Fortune 500). Internationally; however, they seem to have several challenges that need to be addressed if Wal-Mart wants to be competitive. Even though Wal-Mart has what seems to be a flawless business model, there is still a major problem with making profits in potential international markets.
In order to analyze the industry surrounding Wal-Mart, I will address Porter's 5 Forces Model. I will continue to analyze Wal-Mart's business by describing the core values, key resources and capabilities (value-chain, tangible and intangible resources) including outsourcing. I will also identify Wal-Mart's strengths and weaknesses and propose several solutions to the challenges that face Wal-Mart. After complete and thorough analysis, I will finally propose my own solution that will invite projected profits into the foreign markets.
Brief Overview of the Business
Wal-Mart Stores, Inc. is both a domestic enterprise, as well as a national discount retailer. They operate internationally in Canada, Mexico, Argentina, Brazil, Germany, South Korea, United Kingdom, and Puerto Rico including joint ventures in China. Wal-Mart operates on an "Every Day Low Price" philosophy because they are able to maintain their low price structure through ...