Wal-Mart’s Midlife Crisis
This case presents a plethora of internal and external problems that Wal-Mart faces, however the central issue that Wal-Mart must overcome is identifying a strategy to increase sales.
Can Wal-Mart seduce middle-income shoppers into stepping up their purchases in a major way without alienating its low-income legions in the process?
1. Demographic Environment
2. Economic Environment
3. Social-cultural environment
4. Natural Environment
5. Technological Environment
6. Political-Legal Environment
* The company has built a large public and government relations apparatus headed by Leslie A Dach, a veteran Washington political operative of pronounced liberal bent. * Core Competency = Cutting-edge distribution system capable of moving goods from factory loading dock to stre cash register faster and cheaper than any competitor * Low cost operations
* 25% of stores failed to meet minimum expectations of cleanliness, product availability, checkout times, and so on. * Unorganized marketing division, plan
* Rising overhead costs?
* Purchasing goods (apparel) without their main customer market in mind. * Company
* International locations have a need and little resistance * Competitors cannot replicate Wal-Mart’s distribution system or purchasing power *
* Wall Street’s perception that Wal-Mart has little room to grow because it the market is so heavily saturated. * Mounting sociopolitical backlash to Wal-Mart’s size and aggressive business practices. * Lawsuits, organized labor set up two Washington-based organizations to oppose Wal-Mart, municipalities are erecting legal obstacles for the superstore to set up shop. * Increasing energy costs
* Competitors are narrowing the cost gap between them and Wal-Mart. * Slightly higher scale (Target) and lower scale (Aldi)...
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