Walmart internal analysis Essay Example | Topics and Well Written Essays - 750 words

Walmart internal analysis - Essay Example Different locations usually have different laws that govern labor issues. That implies that there are some regions that will employ lower wage rates as compared to other regions. That is beneficial to Wal-Mart because the profit margin of the company will increase. There are some regions that also have cheaper raw materials. That means that the cost of sales would reduce, and that will add on the profitability of the company. Wal-Mart Company also has a number of intangible assets that give a competitive advantage to the business. The company has a reputation that is associated with products that are of high quality. The good reputation will add on the goodwill of the company and that would be advantageous in the running of the company operations. Quality products will lead to the emergence of brand royals. Brand royals will always prefer the products that are sold by Wal-Mart and that usually adds on the profitability of the company. Wal-Mart has a management team that carries out its responsibilities in a manner that is useful in selling out the name of the company. The management team usually equips the company with the ability to coordinate activities that are decentralized in many locations. That ability creates organizational value. Value chain is used to describe a way in which the activities of a business can transform inputs into outputs. A customer usually gets the value from low costs, differentiated products, and the customers accessing their services within the speculated time period. Wal-Mart has the ability to meet the needs of the customers quickly and with convenience. The company has many stores in many locations and that has made it possible for customers to access the products sold by the company with ease. The accessibility of the company products by the customers of the company is strength and that can be used as a competitive advantage over the competitors to the company