Walmart Strategic Analysis: SWOT and Porter's Five Forces

Mission Statement and Core Policies

According to the official Walmart website, the company's mission statement is: "We save people money so they can live better." The broader vision that overlaps with this mission statement is: "If we work together, we'll lower the cost of living for everyone…we'll give the world an opportunity to see what it's like to save and have a better life." The company has established a set of specific policies to foster these objectives. For example, the open door policy requires all managers to remain accessible to employees at every level and at all times. The sundown rule stipulates that questions from consumers, workers, and suppliers must be answered on the same day they are received. Additionally, the company's commitment to a grass-roots process means that ideas are gathered from frontline sales staff, who have direct insight into what needs to change inside and outside of the store. Underlying all of these policies are core values: respect for each individual — both customer and employee — strong customer service, and an overall commitment to excellence in work.

To reinforce a sense of personal service, Walmart employs what it calls the 10-foot rule: employees are expected to make eye contact, greet customers warmly, and offer assistance to any customer who comes within ten feet. The company also practices a model of servant leadership, under which leaders are not seen as commanders but rather as people in service to the employees who work under them. Finally, the Walmart cheer — created by founder Sam Walton — was designed to boost employee morale each morning and cultivate enthusiasm for the workday.

While these are wide-ranging and multifaceted goals, it is worth examining whether Walmart's core objective — saving people money so they can live better lives — is actually being fulfilled. Even though Walmart does save consumers money to a certain extent, it is not necessarily the leader in the discount shopping industry. As Kavilanz (2011) reported, "Wal-Mart's slogan may be 'Save Money. Live Better,' but rival Target is challenging it by offering even lower prices on everyday products. Two recent price comparisons of grocery and household goods revealed that Target's prices are lower than at No. 1 retailer Wal-Mart." A study comparing 22 grocery items — including milk, bread, and rice — as well as home furnishing and personal care products found that Target's total came to $269.13, slightly below Walmart's $271.07 (Kavilanz, 2011). One could argue that while Walmart is saving people money, it is not the unambiguous leader in discount retail. Alternatively, the price difference between the two chains is so small as to be negligible, suggesting both are effectively fulfilling their respective missions.