y is if Wal-Mart could emerge more into the urban marketplace, they would definitely see solid returns. The major barrier to entry in urban areas is the price of real estate required for their storefront.Although it seems that Wal-Mart has few threats to consider, it must still consider them in order to remain one of the best in the industry. The discount variety store industry is a fiercely competing marketplace and the big players are always strategically placed to gain new customers from the competition. Wal-Mart must keep an eye on its competitors, such as Kmart, Sears and Target. Another threat to Wal-Mart is factory stores that offer consumers the alternative of brand names at a lower price. Plus, Wal-Mart must also be aware of specialty retailers, such as Toys’R’Us and Home Depot. The specialty retailers can often offer a wider variety of specific product categories and lower prices. (See Appendix for more detailed list of SWOT.)Porter’s Five ForcesWal-Mart’s financial information Wal-Mart’s stock has consistently done well for investors. From the period 1995 until the present, the stock rose consistently to the point where it split in March of 1999 and peaked in December of that year. It held its footing relatively well after the bearish market activity of 2000 with a market capitalization higher than that of any other company in the discount variety store industry. The price-earnings ratio remains a little high at 33.5 given their large market capitalization. Investor’s like Wal-Mart’s stock especially since its beta is almost one, which means it is a good stock to have in your portfolio in turbulent times in the market. Wal-Mart’s earnings-per-share are most recently about $1.40/sh, about half that of Sears (a notoriously low growth/high dividend stock) but with a commendable 16% 10 year EPS growth rate. As for dividends, Wal-Mart paid about $0.28 per share with a d...
