Business Analysis
University of Phoenix
McDonough Campus
MGT/521
Management: Business Analysis
Companies must be competitive to sell goods and services and maintain a customer base for its products. How well a company meets the customer’s needs relative to its competitor, will determine whether a company continues to prosper or go under. Wal-Mart’s distinctive competency of low price for quality products, gives it a competitive edge over its rivals. Having this competitive edge over its competition is important, due to the fact that competitors are matching the same quality products, trying to gain market share. Because Wal-Mart is a market leader and has positioned itself to be a global giant, matching is not an option if the company wants to continue to dominate the global market. Therefore, Wal-Mart has also positioned itself globally with a brand of “saving people money so they can live better”. This equates to customers being able to trust the company’s brand. To date, the three main segments that Wal-Mart currently operates are: 1) Sam’s Club, 2) the Wal-Mart International segment, and (3) the Wal-Mart U.S. segment. In fiscal year 2011, Wal-Mart U.S. segment net income was over 2 billion dollars with increased operational income of three percent from last year; Wal-Mart’s International Section net income was 109 billion with an expansion of 12 percent from the previous year; and Sam’s Club net income was 50 billion with an expansion of at least 3 percent from the year before. With over 400 billion dollars in sales in fiscal year 2011, Wal-Mart remains on top of its peers in sales. It has incorporated its best practices in the form of sustainability, adding it as a part of its business model. Wal-Mart’s sustainability for profit is based on its locally grown produce and its energy efficient products. To further add to the company’s sustainability and best practices, it pioneered a conglomeration of four major retailers:
McDonough Campus
MGT/521
Management: Business Analysis
Companies must be competitive to sell goods and services and maintain a customer base for its products. How well a company meets the customer’s needs relative to its competitor, will determine whether a company continues to prosper or go under. Wal-Mart’s distinctive competency of low price for quality products, gives it a competitive edge over its rivals. Having this competitive edge over its competition is important, due to the fact that competitors are matching the same quality products, trying to gain market share. Because Wal-Mart is a market leader and has positioned itself to be a global giant, matching is not an option if the company wants to continue to dominate the global market. Therefore, Wal-Mart has also positioned itself globally with a brand of “saving people money so they can live better”. This equates to customers being able to trust the company’s brand. To date, the three main segments that Wal-Mart currently operates are: 1) Sam’s Club, 2) the Wal-Mart International segment, and (3) the Wal-Mart U.S. segment. In fiscal year 2011, Wal-Mart U.S. segment net income was over 2 billion dollars with increased operational income of three percent from last year; Wal-Mart’s International Section net income was 109 billion with an expansion of 12 percent from the previous year; and Sam’s Club net income was 50 billion with an expansion of at least 3 percent from the year before. With over 400 billion dollars in sales in fiscal year 2011, Wal-Mart remains on top of its peers in sales. It has incorporated its best practices in the form of sustainability, adding it as a part of its business model. Wal-Mart’s sustainability for profit is based on its locally grown produce and its energy efficient products. To further add to the company’s sustainability and best practices, it pioneered a conglomeration of four major retailers:
References: Barnett, T. P. (2010). The new rules: globalization’s next wave of integration. World Politics Review. Retrieved on December 7, 2011 from http://www.worldpoliticsreview.com/articles/print/4920 Fisher, C. (2009). The wal-mart you don’t know. Retrieved December 7, 2011 from http://www.fast.com/magazine/77/walmart.html. Kavilanz, P. (2011). Low, low prices: target beats wal-mart. Retrieved December 7, 2011 from http://money.com.cnn.com/2011/03/07/news/companies/walmart_target_better_price/index.htm