Wal-Mart Case Study Example | Topics and Well Written Essays - 1000 words

Wal-Mart - Case Study Example (Wal-Mart) Currently, Wal-Mart operates worldwide through the Wal-Mart Stores, Sam's Club franchises, and International. Wal-Mart offers everything starting from necessities such as food, clothing, health, beauty and household items, cleaning products, electronics and others. Wal-Mart currently operates almost 4,000 stores in the U.S., and more than 2,700 stores outside the United States. Wal-Mart has been an attractive target for lawsuits for so long. The company's policy about this has been to admit their fault and settle the claim, otherwise take the matter to court. This practice of Wal-Mart's has proven effective in keeping the number of lawsuits piling at bay. (Willing) The company has been growing at a remarkable pace. Wal-Mart is not content with its present stature to the effect of building and opening hundreds of new stores each year to further boost its supremacy of the United States retail industry. Wal-Mart is looking to further expansion efforts in the future. Industry experts are concerned however, at the rate that Wal-Mart is expanding. At the rate that it is expanding, the older stores are not getting much attention as the newer ones. Patrons who seek are seeking a change and a more modern feel would flock to the nearest "new" competitor. World oil prices are anothe... Patrons who seek are seeking a change and a more modern feel would flock to the nearest "new" competitor. Retail Industry Health The recent years have seen ups and downs in Wal-Mart's performance. These fluctuations are caused my many factors such as world oil prices, globalization, and others. Similar companies such as Target and Costco are also performing well although Wal-Mart remains dominant in this category. National Economic Trends The United States stock market is currently a bear market and said to be on its third leg. (The Market Oracle) When interest rates are on the rise, stock markets are expected to crash. When inflation rate is high, stock prices may decrease, in like manner, stock prices may become overpriced if inflation rate falls. World oil prices are another important factor in determining the prices of stock and the performance of a nation's economy. The skyrocketing of the prices of oil in the world market would cause prices of stocks all around the globe to plummet. The reason for this is almost all industries are dependent on oil for their operations. The United States is also very concerned about the trade deficit with China. China is fast becoming a world leader with the onset of globalization. In terms of prices, most of China's commodities and the labor market offer very competitive prices as compared to the prices of other countries. The past decade has seen the entry of more and more products and services from China. More industries are shifting or outsourcing labor services to China because of the cost-efficiency. The United States feels that the fact that China refuses to raise the value of its currency gives China an unfair advantage when it comes to trade. With more buying power