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WAL-MART STORES: NEW SET OF CHALLENGES The issues covered pertain to Wal-Marts impressive and unimpressive strategies and operations, core competencies of the management, financial condition, continued success, and recommendations. There are five areas of Wal-Marts strategies and operation. The expansion plan, that stretches around the world shows the financial and management prowess of Wal-Mart. The ownership and integration of a variety of Wal-Mart stores signifies an aspect of internal expansion and growth of Wal-Mart. The variety of stores leads to differentiated products that appeal to more customers. Also, the vastness of the Wal-Mart Empire enables them to control prices set by their suppliers, and in turn provide low-cost products and services.
Broad differentiation and low-cost focus comprise the key features of the Wal-Marts strategy. With more brands, more products, and more services, at lower prices, outsourced from different parts of the world, Wal-Mart highlights one of its striking appeal and difference from its competitors. In addition, the increase of stores has improved for the past five years due to the companys growth. Although Wal-Marts long-term debts and obligations increased to sustain their worldwide expansion. Wal-Mart is currently the leading retail store in the United States.
More importantly, it is the largest company in the country. It was even the biggest in the world, until three oil corporations recently surpassed its title. Wal-Mart was founded in 1962, at Rogers, Arkansas. Now, it has 6, 556 stores in sixteen nations. Its retail units include Wal-Mart stores, Supercenters, Sams Clubs, and Neighborhood Markets (Wal-Mart, 2006). Through these chains, the giant aims to offer almost any kind of product at very low prices.
Part of the package is convenience and responsive client service, not to mention endless bargains and promotions that drive shoppers to a frenzy. The issues covered pertain to Wal-Marts impressive and unimpressive strategies and operations, core competencies of the management, financial condition, continued success, and recommendations. There correspond five areas of Wal-Marts strategies and operation. The expansion plan, that stretches around the world shows the financial and management prowess of Wal-Mart. The ownership and integration of a variety of Wal-Mart stores signifies an aspect of internal expansion and growth of Wal-Mart. The variety of stores leads to differentiated products that appeal to more customers.
Also, the vastness of the Wal-Mart Empire enables them to control prices set by their suppliers, and in turn provide low-cost products and services. There are five categories that are vulnerable as threats to the company. These are in the areas of consumer electronics, banking, pharmacy, gasoline and fashion (Wal-Marts next victims). Walmart is the second largest consumer electronics retailer in the U.
S. but rising profits and share of the market is taking away choices for consumers. Thus, there may be less dealers available. This may affect what consumer electronics products one actually buys. In the area of banking Walmart hopes to be success in banking knowing that most of its customers do not have bank accounts. Of course the company says that it has no plans to go into retail banking, but industry sources say that Walmart is still toying with the idea of going into the banking business again after trying it before by offering financial services such as check cashing, bill payment and money orders.
In the area of gasoline, Walmart is running high in terms of the gasoline since the number of Wal-mart locations and the volume that they could present could be of enormous interest to the refineries. In the area of Pharmacy, Walmart is upgrading its file and according to the write up at Forbes, Pharmacies are low-margin propositions, and people with health insurance who pay only co-payments aren't price-sensitive. That could put a kink in Wal-Mart's strategy of squeezing supply chains to push down retail prices. But for the shoppers who don't have insurance, many of them its customers, Wal-Mart's brand of competitive pricing would be just what the doctor ordered. (Wal-Marts next victims).
Walmart is gearing up its fashion sense into its stores as it is supposedly losing the sales of its fashion items to other stores. Thus, it is dressing up its clothing displays and pushing marketing of these items (Wal-Marts next victims). In order for Wal-Mart to effectively project a corporation with a social conscience, it must take a low-profile position during these pressing times. No company remains always on top, and even Wal-Marts empire can be toppled by simultaneous small mistakes. It can be a small price for Wal-Mart to lose employees now, but consequences will develop and negative impact on company ethics and integrity can be magnified in the long run. Thus, Wal-Mart must start cleaning its own backyard, and at the same time, improve its fragmented corporate culture.
Everything must start from the top management analyzing where the company went wrong that caused the labor problems, and from there, negotiate a win-win situation for the company and the its employees. Not to mention, the management ought to strategize in unifying the Wal-Mart workers, into one dynamic and healthy Wal-Mart culture. Stepping back a bit and looking at the whole scenario, I think the management's corporate plans and strategies boosted corporate financial growth, as well as, expansion of branches worldwide. The ability to improve distribution at the performance and technological dimensions enhance the delivery system of Wal-Mart. Also, the management pushed their employees to be innovative in accomplishing their tasks at hand, starting with Waltons aggressive hospitality. All of these components produce a strong Wal-Mart culture that symbolizes most of its strength in the Bentonville headquarters.
Yet, a fragmented culture arises due to geographic distances, socio-economic, political and cultural differences among branches located at different countries. However, there exist certain weaknesses that present challenges to Wal-Mart. I disapprove of how the corporation handles and handled labor concerns and issues. They mostly brushed labor problems under the carpet, just like in closing stores that exhibited unionism. This makes me skeptical about how Wal-Mart can sustain a fast-paced expansion, without responding appropriately to their labor issues.
Moreover, I am wary of how Wal-Mart can maintain and improve their retail chain store leadership at other countries, where different cultures, social status and lifestyles reside. Nevertheless, the internal growth of portfolio and spur in profits, side-by-side international expansion, showcases Wal-Marts success. References Adeloka, A. (2006, May 25). Wal-Mart- 2000. Retrieved July 22, 2006 at University of Wisconsin-Stout Web Site: web STRAMGT/powerpoint's/Wal-Mart - 2000. ppt Wal-Mart. (2006, May 25).
In Wikipedia, The Free Encyclopedia. Retrieved July 22, 2006 at web index. php? title = Wal-Mart&old = 55079746. Wal-Mart Facts. (2006).
Retrieved July 22, 2006 at web news/ Wal-Mart History. (2006). Retrieved July 22, 2006 at web GlobalWMStoresWeb / navigate . do? can = 5 Wal-Marts next victims. Forbes.
MSN money. Retrieved July 22, 2006 at: web
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Research essay sample on Wal Mart Stores New Set Of Challenges
