Wal-Mart Public Relations Case Study By Riley Hall PR Case Studies, COMT 526/800 Dr. Keller

Strengths Numbers: Numbers: –1994: 2440 stores total –2006: 3863 in US, 2700 more outside Information Technology/Supply Chain Information Technology/Supply Chain Store brand superpower Store brand superpower

Weaknesses Supplier relations and employee treatment scandals Supplier relations and employee treatment scandals Fall from grace as a supporter of American business Fall from grace as a supporter of American business Store saturation, with decreasing profit per store Store saturation, with decreasing profit per store

Growing Pains: Saturation

Same-store Sales Increase Same-store sales increase measures the amount (in percentages) of sales increase each store experiences over the previous year. Same-store sales increase measures the amount (in percentages) of sales increase each store experiences over the previous year. Compared with Target, Wal-Mart is struggling. Compared with Target, Wal-Mart is struggling.

Opportunities International Markets International Markets –Great potential, but inconsistent performance Organic food Organic food Health care spending Health care spending

Threats Stiff international competition Stiff international competition Community opposition Community opposition Class-Action Lawsuits Class-Action Lawsuits –Weaken brand image –Increase distrust Its own pricing tactics Its own pricing tactics

Suggested PR Approaches Increase public relations and communications in general Increase public relations and communications in general Redirect efforts from new stores to better stores: Redirect efforts from new stores to better stores: –Store appearance –Marketing approach Give employees more voice Give employees more voice

Conclusion Can Wal-Mart afford not to change? Can Wal-Mart afford not to change? Will we let it? Will we let it?