Wal-Mart and Target Firms’ Management Analysis

Introduction

Wal-Mart Stores is an American corporation. It runs a chain of large stores, which are famous for its discounts. It was Founded by Sam Walton in 1962, before opening its first store Sam travelled whole of country and found that American people need a different type of store dealing in discount retailing. After doing his research, he and his wife Helen jointly opened the first Wal-Mart store in Rogers, Ark. It was incorporated on oct 31, 1969, and in 1972, it goes public by being listed on the New York Stock Exchange. In 1960s, many discount stores such as k-mart and Target also originated but the growth of Wal-Mart was fastest after the listing in 1972. And so, by the end of the decade the company grew to 276 stores in 11 states.In 1983, the first Sam’s Club members-warehouse store was opened and in 1988 The first Super center opened. It featured a complete grocery, and 36 departments of general merchandise. By 1989, there were 1,402 Wal-Mart stores and 123 Sam’s Club locations. Today there are 7,343 stores and club locations in 14 markets and it has more than 1.9 million associates, serving more than 176 million customers a year. It is the largest employer in the world. According to 2008, ’fortune global 500’’. It is the world’s largest public corporation.

History of Target

Target Corporation is originally known as the Dayton Dry Goods Co. It is an American retailing company that was founded in Minneapolis,Miinisota, in 1902. Its first store was opened in 1962, in Roseville, Minnesota.In the initial years it lost its money but it reported its first profit in 1965. In 1966 a speciallity bookseller chain was launched and in 1967 the company went public and. Today It is the fifth largest retailer by sales revenue in the United States and the company is ranked 31st on the 2008 fortune 500 companies. It operates its retailing business exclusively in the United States. It is a rival and competitor of k-mart and Wal-Mart.

SWOT Analysis

Strengths of Wal-Mart

In the Management area the environment at Wal-Mart is very good and inclusive, it give opportunities, takes opinion from the employees and regard their opinion. They give state of the art training to the people with a no. of training tools. They provide equal employment opportunities and always believe in implementation of its values.The main aim is to serve customer at the lowest prices. so the main values are service to customer and excellence in all fields.The main campaign of Wal-Mart marketing is, ‘ every day low’s prices’. Because of their low price and rollback prices they are always ahead of the competition. The most important aspect of their marketing is that they create a one level shopping experience and offer thousands of products. In Finance and accounting growth of the stock prices are also good and a safe bet for investment.There is an astronomical increase in their revenues which also affect the net income and helps in the growth.

Strengths of target

The main aim of target is that it is committed to growth and superior returns of the shareholder. It claims that it provide better quality, better price in new products. It has convenient stores to attract the customer. The current strategy is to offer high quality fashionable merchandise at affordable rates. The strength of target is that it has acquired many new companies and its stores have changed significantly from the past. The e-commerce capability was launched so the focus of Target Corporation is on target store and e-commerce. Its strength also lies in capabilities in direct marketing, retail channels and internet marketing. The industry of retail merchandising is growing which provides strong economy.

Weaknesses

The main weaknesses of Wal-Mart is that in management it has very few women at top ,there are no unions. In marketing it has a damaged reputation and they have faced stiff competition in small towns and small shopkeepers because Wal-Mart can cause threat to their business. In finance the ratios are not impressive ,earning per share ratio is not good. In production there are lot of competition in market, speed of check out lines are very slow.Due to this they are loosing their clients.There is no research and development department.

The main weakness of target are its two divisions, department store and Mervyns division. These stores are the cause which is hampering the growth of target corporation. It should devise a new strategy to generate profit. The company should focus on all target stores for its growth and stay in competition.

Opportunities

The main goals of Wal-Mart are to form alliance with global retailers’ especially in china and Europe and to take over in emerging markets. The stores are operational in few countries and many new horizons can be explored. The scope of opening stores in many other developing countries is very large. They can open its store in new malls or open supercentres in new countries.

The opportunities of target are that due to weakness of Wal-Mart people can go to target. It can market its products in better way than others market and provide better pricing and good quality to consumers. It can also form alliance with global partners and explore new horizons.

Threats

The major threats that Wal-Mart faces that being no. one in market it always face stiff competition and it is always the target of everyone.It has to face political problems in operating countries and due to increasing food prices and deflation there is increase of pricing of goods also.

The major threat that target is facing is that not being no. one it always has to come with new ideas and strategies to become no. one. There is always a new competitor in your home market. There are always Price wars with competitors and you always have to face challenges.

Works cited

Official website of Wal-Mart stores,Inc, history, facts, information and results.

‘Internet retailer top 500 retail web sites’, internet retailer 2007 edition.

Official website of Target stores, history, facts, information and results.

Target corporation 2001 Annual report, target corporations.